21 July,2016 07:13 AM IST | | Varun Singh
Bids will open next month; the plan is expected to resolve a severe shortage of staff quarters, pending since 1996
The income tax (I-T) department has set sights on the mother of all real estate deals. It plans to buy 1,222 ready-to-occupy houses in Bandra, Kurla, Sion, Ghatkopar, Chembur, Powai, Antop Hill, Andheri, Borivli, Goregaon, Malad, Mulund and Kandivli for use as staff quarters.
The I-T department is looking at ready-to-occupy flats across Mumbai. Pic for representation
Even by the most conservative market rates in these areas, it's going to be a whopper of a deal. If each flat goes for, say, R1 crore, all of the houses will collectively cost Rs 1,222 crore.
The flats will be bought through a bidding process. Ideally, anyone can offer their flat(s) - be it individuals or even the MHADA - provided they meet the eligibility criteria. But going by how "rigid" the riders laid down by the department are (see box), it's likely that only builders will make the cut. Prospective bidders will also have to deposit an earnest money of Rs 2 lakh per flat. The bids are expected to open in the first week of next month. August 1 is the deadline for filing of tenders.
The flats are not likely to go at ready reckoner rates.
Vishal Makwane, deputy commissioner, I-T department, Mumbai, confirmed the mega purchase plan. "These homes will be used as staff quarters." He refused to divulge more details, saying the nitty-gritty will be discussed at a pre-bid meeting, scheduled to be held today.
Why now?
The department's plan to purchase so many flats is its masterstroke to resolve a severe shortage of staff quarters, pending since 1996, at one go. An I-T staffer said many employees who were assured an upgrade from 1 BHK to 2 BHK in 1996 are still waiting for the department to make good on its promise.
At present, the department has staff quarters in Ghatkopar, Antop Hill, Wadala and Powai.
Boom in realty
The massive deal is expected to help infuse life into the stagnant real estate market. A huge demand for houses and the large transactions are exactly the pick-me-up the market needs, said experts.
"Sure, it's difficult to find so many flats at one go, but there are many houses in Mumbai that are in the under-construction stage.
If I-T department buys these, we're looking at a minimum transaction of Rs 1,222 crore. In most of the areas where the department is looking for houses, each flat goes for over R1 crore," said Prakash Rohera, a realtor from the western suburbs.
Another builder, however, felt that the many clauses in the deal may put developers off.
"The biggest clause is that the offer for price and inventory will be valid for at least 12 months from the date of opening of the financial bid. So, if the property rates go up, the I-T department won't increase their rate or pay the difference. This will be a dampener; builders are here to make a profit."
