Telangana Government Plans to Auction 3716 Flats to Raise Rs 800 crore

Rajiv Swagruha Flats' Auction might Boost the Real Estate Economy

Around 3,716 flats are vacant in the townships at Pocharam and Bandlaguda. The prices of these flats would be fixed based on the demand in the open market.

The state government plans to auction these flats under Rajiv Swagruha flats and expects to raise over Rs 800 crore. The prices of these flats must be evaluated before selling them in the open market. Thus, a bidding process was initiated to find suitable real estate consultants for assessing these flats. Knight Frank, real estate consultants of international repute, has been chosen to evaluate the market price of the vacant 3,716 units in Bandlaguda and Pocharam townships. 

The Government has asked Knight Frank, real estate consultants, to prepare a report on the expected revenue if the flats are auctioned individually or if they were to be sold to the real estate giants in lots. The report must be shared with the Government officials within ten working days.

Once the report is submitted, it will be reviewed by the chief minister K Chandrasekhar Rao, and he would take the final decision. The Government will auction the flats without further repairs or adding any infrastructure to the existing flats.

As per R&B minister Vemula Prashant Reddy, the guidelines for auction-cum-sale of Swagruha flats are in the finalization stage. Based on the demand and saleability of these 3716 flats in the open market, the prices for these flats would be fixed.

The Government of undivided AP in 2007 had announced the Rajiv Swagruha housing scheme for the urban middle class. This led to the foundation of Andhra Pradesh Rajiv Swagruha Corporation Limited (APRSCL). When AP was divided, and Telangana was formed, the Andhra Pradesh Rajiv Swagruha Corporation Limited paid the bank loans and got back all the projects from the mortgage.

The Government in 2016 took a call to allot the flats at Bandlaguda and Pocharam to government staffs; unfortunately, there weren't any takers.