CDA Auction 2024 Failed | A Disappointing Outcome Raises Concerns
The Capital Development Authority’s (CDA) today’s auction 11th January 2024, was anticipated to be a significant event for real estate enthusiasts and investors. However, the outcome of the CDA auction Islamabad held in Gandhara Hall F-9 Park Citizens Club has left many disappointed, with only one plot sold and several issues highlighting organizational challenges.
Auction Deferred Plot Controversy:
A major point of contention emerged when the CDA, against its own advertised schedule, presented a deferred plot in the auction earlier than expected. The advertisement clearly stated that deferred plots would be introduced on day 3 of the auction. However, on the request of a single individual, the CDA auction organizing team decided to bring forward a deferred plot, causing confusion and dissatisfaction among potential investors present in the auction.
Adding to the disappointment was the fact that only one plot was successfully sold during the entire auction. This further underscores the concerns about the effectiveness of the CDA’s auction management and its ability to attract potential buyers.
Participants were amazed to find that only one plot is sold, details are listed below:
1. Plot # 11 B, Area: Diplomatic Enclave, Category: Apartment is sold for rupees 3.34 billion
The primary investor decided to withdraw from the auction between 12 pm and 2 pm owing to the elevated opening prices.
The CDA deferred a total of 8 plots and featured the previously deferred plots in the auction held yesterday, contrary to the advertised schedule, where they were initially slated to be presented on the third day of the auction. Deffered plots are listed below:
1. Plot # 11 G-10 Markaz, Category: Hospital
2. Plot # 72, Category: Commercial Timber
3. Plot # 73, Category: Commercial Timber
4. Plot # 3, Commercial Orchid Heights
5. Plot # 25 B, G-11/1, Category: Commercial Apartment
6. Plot # 14, G-11/3 Markaz, Category: Commercial Apartment
7. Plot # 20, I-14 Markaz, Category: Petrol Pump
8. Plot # 28, D-12 Markaz, Category: Hospital
Potential Bid Rigging:
The shocking revelation suggests that the CDA may have allowed a single investor to exploit the system by obtaining two auction tokens. This granted the investor an unfair advantage, as they could participate in the auction without facing genuine organic competition.
The real cause for concern emerged when the said investor purchased a Plot # 09 Blue Area in the previous day’s auction at a mere 1.7 million rupees per square yard, only to flip it in the following auction for an astronomical 4.53 billion rupees. This unprecedented profit margin within such a short timeframe raises questions about the transparency, fairness, and potential manipulation within the CDA auction system.
The significant disparity between the purchase and resale values of the plot in question has led to speculation about bid rigging.
Deferred Plot Controversy:
A major point of contention emerged when the CDA, against its own advertised schedule, presented a deferred plot earlier than expected. The CDA advertisement in their own brochure page 16 clause # ii clearly stated that deferred plots would be introduced on day 3 of the auction.
The CDA auction on January 11th, 2024, will be remembered as a significant disappointment for both organizers and participants. The lack of proper management, the deviation from the advertised schedule, and the low number of plots sold have raised valid concerns about the transparency and efficiency of future auctions. It is imperative for the CDA to address these issues promptly and take corrective measures to rebuild trust among potential investors for future events.
For 10th January 2024 CDA Auction follow the link: 10th January CDA Auction 2024
CDA Auction Details: CDA Auction
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