The Ahmedabad Municipal Corporation (AMC) has encountered significant challenges in completing its record-breaking land sale to LuLu International Shopping Malls Pvt Ltd. The transaction, valued at an impressive Rs 519 crore, marks AMC’s largest-ever land sale. However, complications have arisen regarding the transfer of complete land possession to the buyer.
The plot in question spans 66,168 square metres in Chandkheda, which was sold to LuLu International at Rs 78,500 per square metre. Despite the formal agreement, AMC is currently unable to transfer full possession of the land, as approximately 10,672 square metres of the plot remains under cultivation. This has prevented the municipal body from securing complete ownership of the entire parcel.
On June 18, AMC conducted an auction of five plots located in Chandkheda and Motera, where LuLu International emerged as the highest bidder for the Chandkheda plot. The company agreed to pay Rs 519 crore, a substantial increase from the base price of Rs 502.87 crore. Previously, the AMC standing committee had decided to sell these plots outright rather than offering them on a 99-year lease. The overall revenue anticipated from the June auction of all plots amounted to Rs 937 crore.
A senior AMC official acknowledged that several formalities required for executing the auction remain incomplete. The primary issue stems from the complications associated with the Chandkheda plot sold to LuLu Group. Although the deal has been officially signed, AMC has yet to transfer full possession of the land. Current efforts are focused on handing over approximately 55,000 square metres of the total 66,168 square metres auctioned to LuLu.
In June, the corporation placed 22 plots on the auction block, with only six plots securing buyers. An estate department official highlighted that the standing committee’s approval, a crucial procedural step, is still pending. This delay in finalising the deals is expected to impact several real estate projects currently in the pipeline. The AMC’s inability to provide full possession of the land to LuLu International Shopping Malls Pvt Ltd underscores the challenges faced by municipal bodies in executing large-scale land deals. As the corporation navigates these hurdles, the delay is poised to affect future real estate developments, potentially stalling significant urban projects in Ahmedabad.
