The Nagpur Improvement Trust (NIT) has been unable to find even a single buyer for flats constructed for higher income group (HIG) at Gorepeth and Bhamti.
The sale of Gorepeth flats had been put off since last four years due to a land dispute.
A NIT official told TOI the tendering process and open auction was held for HIG flats last month, but no one turned up. “We are again planning to go in for an auction soon,” he said.
In 2011, NMC had started construction of HIG flat scheme with 15 flats each of 2BHK and 3BHK adjacent to the canal at Gorepeth. Deadline to complete the scheme was set as December 2012.
NIT completed the construction of nine flats — six 3BHK and three 2BHK — in 2014. The project was stuck due to land dispute with the family of IAS officer Atul Patne.
NIT was planning to complete the entire scheme and then auction the flats. However, the land dispute stretched on, and remains unresolved even now. NIT recently tried to auction the nine completed flats, keeping on hold the remaining flats.
NIT had constructed 3BHK with super built up area of 1,396 sq ft (129.79 sq m) and kept offset price of Rs1,02,14,080, which comes to 7,316.67 per sq ft. Super built area of 2BHK was 1,053.94 sq ft (97.95 sq m) and offset price was Rs8.04 million, which comes to Rs7,628.51 per sq ft.
NIT officials said the buyer has to pay ground rent of 2% of total value of flat to NIT every year. Ground rent becomes high when it comes to 3BHK flats.
Flat owner would have to pay NIT’s ground rent, and also NMC’s property tax every year. Also, there seems to be not much demand for flats in the present condition.