Rs. 30-Crores Per Acre

                                                                                         

Witnessing spiralling land prices, Hyderabadi city outskirts have hit a new high, as tobacco powerhouse Indian Tobacco Company (ITC), placed a whopping Rs. 30-crore per acre bid for AP Industrial infrastructure Corporation’s (APIIC) land near Madhapur. A bid that has everyone scratching their heads and asking: ‘Crazy kiya re!’

Barely a decade ago, land prices in the area hovered around Rs. 10-lakhs per acre, the highest sum ever offered for land in the state, going by what government officials say.

However, shockingly the reserve price stipulated by APIIC is only Rs. 18-crore per acre, and the ‘almost double’ price has taken it aback. The only other bidder - Indu Projects, offered just a little over the reserve price of Rs. 18-crores per acre.

Before this, the highest price stood at Rs. 15.5-crore an acre, which Hyderabad Urban Development Authority (Huda) at Kokapet, on the city outskirts in Ranga Reddy district, made in a recent land sale.

Dividing 30-acres of prime land in Hyderabad Knowledge City (Phase I) at Raidurg near Madhapur, into three portions of 10-acres each, APIIC has placed all three portions for separate bidding.

ITC’s offer has officials completely stumped, as it has offered Rs. 28-crore per acre for the second lot of 10-acres, including another Rs. 25-crore per acre for the third lot, even though the land is under litigation. Despite legal hurdles and APIIC’s auction notice making it clear that ‘the land is offered for development as per the legal opinion obtained from the solicitor general of India subject to the final outcome of the appeals pending with the Supreme Court‘, ITC has gone ahead and made that exorbitant offer.

However, not before placing certain riders, while making the Rs. 30-crore per acre offer. “The bidder has laid down some conditions which we are studying. It is only after taking a decision on them that the corporation will ask the bidder to deposit the 30% of the bid amount that is required to be given first,” says D. Muralidhar APIIC Executive Director, refusing to divulge the conditions placed by ITC.

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