Over 10 acres of land in Chennai belonging to HTL Ltd is back on the block five years after the then Tamil Nadu Government blocked its sale.
With a reserve price of about Rs 250 crore — or, about Rs 5,637 a square foot — the sale may evoke keen interest as it is a large parcel that can be developed as a residential and/or commercial property in Guindy, in south Chennai. The guideline value is about Rs 6,500 a sq ft. The property is attractive because regulations now allow residential use of this land with permissible built up space of 2.5 times the land area.
The prime property is in the possession of State Bank of India under the Sarfaesi Act that allows banks and financial institutions to auction properties when borrowers fail to repay.
The property of what was Hindustan Teleprinters Ltd is to be sold by e-auction next month. International property consultants Jones Lang LaSalle will handle the sale.
In 2007, HTL (by then divested to Himachal Futuristic) sold the land to Bangalore-based developer RMZ Corporation for Rs 297 crore, then considered a record price. RMZ planned a large IT and commercial development. However, the State government refused to clear the sale of the industrial land, and considered buying it back. The issue went to court and, according to HTL sources, the company’s right to sell the property was upheld in the Madras High Court and the Supreme Court.
Meanwhile, in 2009, the SBI took possession of the land. It has now put it back on sale, according to sources in the know.