Gurgaon: Municipal bodies across Haryana will now have to classify properties for sale through e-auction following the state government bringing in the Haryana Municipal Properties Auction Policy, 2024. The Municipal Corporation of Gurugram has begun the process of identifying such properties.
According to a policy set by the Urban Local Bodies (ULB) department, auctions must now be conducted through an online platform, adhering to the prescribed procedures, Times of India has reported.
How property e-auctions will work in Haryana
Auction notifications or bid documentation will be posted on a dedicated portal specifically designed for municipal property auctions. Potential buyers, including individuals, firms, or companies, must register as bidders on this portal and submit the required earnest money deposit (EMD) by the specified deadlines.
Bidders will only be allowed to participate in the auctions after successful EMD payment. The competent authority will organise the auctions in two categories: one for individual properties at specific locations for particular purposes, and the other for multiple plots or shops at a single location.
A portal has been developed for the e-auction of municipal land, which is currently undergoing internal testing before the launch of the e-auction scheme. The process of identifying auctionable land under the jurisdiction of the MCG is also underway, according to an MCG official.
The portal will serve multiple functions, including applicant registration, listing municipal properties for auction, and distributing auction notices and bid documentation. It will allow participants to register as bidders, take part in the bidding process, and confirm the winning bidder.
Additionally, the portal will handle payment processing for the highest bidder, issue bid acceptance notifications and letters of intent, and manage the collection of remaining payments. It will also oversee the distribution of allotment letters from the respective municipalities and finalise the execution of the conveyance deed.
E-auction policy rules
As per the policy, during the initial auction round, properties with a reserve price between Rs 1 crore and Rs 5 crore will require minimum bid increments of Rs 30,000, while extended rounds will need Rs 45,000 increments. For properties with a reserve price exceeding Rs 5 crore, the minimum bid increase will be Rs 50,000 in the first round, followed by Rs 75,000 increments in subsequent extended rounds.
Additionally, the winning bidder must pay 10% of the final bid amount within 98 hours of the auction’s conclusion, with the option to adjust the Earnest Money Deposit (EMD) amount. The bidder is required to make the first instalment payment of 15% of the final bid amount within 30 days from the conclusion of the bid. The remaining 75% of the final auctioned amount must be paid within 120 days from the bid conclusion date, without any interest charges.
