Ahmedabad: In a significant move, the Ahmedabad Municipal Corporation (AMC) was mandated to cancel the sale of a plot to builder from minority community, auctioned through its online public bidding process, after the district administration denied permission under the Disturbed Areas Act for execution of the sale deed.The plot, located in Makarba and sold for Rs 68.44 crore, was among three parcels auctioned by AMC in June 2024. Officials said the land falls within an area notified under the Disturbed Areas Act, making prior approval from the collector’s office mandatory before registration of the sale deed.The Ahmedabad West deputy collector rejected the application seeking permission, leaving AMC unable to complete the transaction. This is believed to be the first instance of a civic body auction being cancelled due to denial of such clearance.Sources said objections were raised by senior political leaders after the successful bidder, a builder from the minority community, emerged as purchaser of the plot situated near the police headquarters at Makarba crossroads. A retired AMC official said the Act was intended to prevent forced or inducement-based property transactions in notified areas, regardless of the communities involved. “The question is whether such permission should apply when a statutory authority like AMC disposes of land through a transparent online auction,” the official said.The civic body officials pointed to an earlier case in Sarkhej, where houses built by AMC for the urban poor in a notified area were exempted from Disturbed Areas Act clearance for first-time allotments after the collector’s office ruled that individual permissions for large numbers of beneficiaries would be impractical.AMC routinely auctions plots reserved for sale purposes in town planning (TP) schemes to generate funds for civic infrastructure. Under TP schemes, 40% of land is deducted from original landowners for roads, public amenities and saleable plots meant for residential or commercial use.During the June 2024 auction, AMC sold three plots — two in Makarba and one in Bodakdev — fetching a combined of Rs 237.4 crore. The two Makarba plots drew strong bidding interest.One of them, Final Plot No. 96 in TP Scheme No. 84/A, measuring 3,740 sq m, attracted over 18 bidders. With a base price of Rs 80,000 per sq m, the plot was eventually sold at Rs 1.83 lakh per sq m, taking the total sale consideration to Rs 68.44 crore against an upset value of Rs 29.92 crore. AMC earned an additional Rs 38.5 crore over the base valuation.However, despite the high-value bid, the sale deed remained pending for nearly two years as AMC sought statutory clearance under the Disturbed Areas Act (The Gujarat Prohibition of Transfer of Immovable Property and Provision for Protection of Tenants from Eviction from Premises in Disturbed Areas Act, 1991).BOX: DA Act hurdle for online plot auctionsAhmedabad: A key legal and policy question has emerged over whether plots falling under the Disturbed Areas Act can be sold through online auctions, potentially stalling the Ahmedabad Municipal Corporation’s (AMC) planned sale of reserved plots in several town planning (TP) schemes. AMC has prepared TP schemes in areas such as Vatva, Narol, Shahwadi and Makarba, where certain plots have been earmarked for sale. However, uncertainty has arisen over the validity of auctioning such plots online if they are located in areas notified under the Disturbed Areas Act, which regulates transfer of immovable property in sensitive localities. With the issue yet to be clarified, the proposed sale of reserved plots in these TP schemes is likely to remain on hold, said sources.
