Yeida will create new standards for land allotment after the M3M conflict

By Bricksnwall | 2024-06-12

According to the new guidelines, if a single bidder comes forward to buy a plot in an e-auction after two rounds of tendering, the bid would be invalidated. YEIDA sources.

Following a controversy over the allotment of plots to realtor M3M Group, the Yamuna Motorway Industrial Development Authority (Yeida) has decided to develop new standards for auctioning land before it is allotted to realtors or businesspeople.

According to sources in Yeida, the new rules state that if only one bidder comes forward to buy a plot in an e-auction after two rounds of tendering, the bid will be canceled. Following a controversy over the allotment of plots to realtor M3M Group, the Yamuna Motorway Industrial Development Authority (Yeida) has decided to develop new standards for auctioning land before it is allotted to realtors or businesspeople.

In the instance of the M3M plots, the authority distributed the two land parcels without e-bidding after two rounds because just one bidder (M3M) came up to buy the land, resulting in a financial loss for the government.

According to current guidelines, if only one bidder participates in the first round of the e-auction, the scheme will be extended again, each time for an extra seven days. And if there is still just one bidder after these extensions, the property is awarded to that bidder, as long as their bid surpasses the reserve amount, officials stated.

"The new guidelines aim to promote healthy competition among bidders while avoiding potential losses caused by the existence of only one bidder during the e-auction.

" We propose that if there is only one bidder in the first round, we extend the scheme's deadline by seven days. If there is still only one bidder after this extension, the deadline will be extended by another seven days. If two bidders remain after these two extensions, the plot will be awarded to the highest bidder."If there is still only one bidder, Yeida will cancel the bid and reissue the tender," said Arun Vir Singh, CEO. Yeida.

On May 10, 2024, the state administration revoked the allotment of two M3M land parcels, citing a lack of healthy competition. As a result, the government suffered a revenue loss, and the allotment terms and conditions rejected the Comptroller and Auditor General of India's recommendations to clarify the allotment procedures for Noida, Greater Noida, and Yeida.

According to the government decree, the corporations acquired the land pieces by upping their bid quotes by only ₹5 lakh over the reserve price.

However, the government reversed its decision, lifting the cancellation order and reinstating the land allotments.The Noida Authority is also making modifications to its e-auction policy.

Source: Hindustan Times