Ahmedabad's riverfront land sale faces policy overhaul

28 Sep 2023 CW Team

Presently, the Ahmedabad Municipal Corporation (AMC) is diligently crafting a new policy that will govern the sale of these plots, addressing various issues, including aspects like building footprint and development rights.

Confidential sources within SRFDCL have divulged that a selection of five plots located on the western bank of the riverfront is under consideration for sale once the new policy is finalised. A senior AMC official raises a significant question, "The critical inquiry revolves around whether this fresh valuation will establish base prices exceeding those from 2016 or align more closely with figures from 2022." According to information available on SRFDCL's official website, the sale of these 49 plots constitutes approximately 15% of the total riverfront area.

Back in 2016, AMC conducted the initial valuation, setting prices for two plots earmarked for a public auction. These valuations raised eyebrows, as one plot was assessed at Rs 7.86 lakh per sq m and the other at Rs 2.96 lakh per sq m. Many observers deemed these rates to be exceedingly high, according to the senior official.

In January 2021, SRFDCL once again invited potential buyers, with AMC providing comprehensive details about the plots, including their dimensions, permissible height, development rights, volumetric FSI for development, and construction specifications. This effort resulted in 21 proposals being submitted by real estate companies out of a total of 28.

However, in March 2022, AMC encountered difficulties in selling a plot located on the east bank of the riverfront. This plot was divided into two parts, one with a Floor Space Index (FSI) of 4 and the other with an FSI of 2. AMC sought the expertise of the land valuation committee of the Ahmedabad Urban Development Authority (AUDA) to establish the base price for this plot. Nonetheless, the committee concluded that the proposed prices were too low when compared to the rates achieved in the previous auction.

For more than a decade, the Sabarmati Riverfront Development Corporation (SRFDCL), a public entity operating under the city's municipal corporation, has been actively seeking to sell 49 prime riverfront land parcels to private developers. However, this process has been marred by persistent delays, with the last official valuation taking place in 2016. Presently, the Ahmedabad Municipal Corporation (AMC) is diligently crafting a new policy that will govern the sale of these plots, addressing various issues, including aspects like building footprint and development rights. Confidential sources within SRFDCL have divulged that a selection of five plots located on the western bank of the riverfront is under consideration for sale once the new policy is finalised. A senior AMC official raises a significant question, The critical inquiry revolves around whether this fresh valuation will establish base prices exceeding those from 2016 or align more closely with figures from 2022. According to information available on SRFDCL's official website, the sale of these 49 plots constitutes approximately 15% of the total riverfront area. Back in 2016, AMC conducted the initial valuation, setting prices for two plots earmarked for a public auction. These valuations raised eyebrows, as one plot was assessed at Rs 7.86 lakh per sq m and the other at Rs 2.96 lakh per sq m. Many observers deemed these rates to be exceedingly high, according to the senior official. In January 2021, SRFDCL once again invited potential buyers, with AMC providing comprehensive details about the plots, including their dimensions, permissible height, development rights, volumetric FSI for development, and construction specifications. This effort resulted in 21 proposals being submitted by real estate companies out of a total of 28. However, in March 2022, AMC encountered difficulties in selling a plot located on the east bank of the riverfront. This plot was divided into two parts, one with a Floor Space Index (FSI) of 4 and the other with an FSI of 2. AMC sought the expertise of the land valuation committee of the Ahmedabad Urban Development Authority (AUDA) to establish the base price for this plot. Nonetheless, the committee concluded that the proposed prices were too low when compared to the rates achieved in the previous auction.