Snag in LuLu land deal: AMC unable to transfer full possession of 66,168 sq m plot

Ahmedabad: The city civic body sold a 66,168 square meter commercial plot to LuLu International Shopping Malls Pvt Ltd for Rs. 519.41 crore in June 2024. However, a snag has emerged in the deal, as the Ahmedabad Municipal Corporation is unable to provide full possession of the land to the buyer because it does not have complete ownership of the plot.

It is learnt that out of the 66,168 sq m plot in Chandkheda, approximately 10,672 sq m is currently under cultivation, and the AMC does not have full possession of the entire plot.

The plot is located near the existing Balaji Agora mall and is situated on the Sardar Patel Ring Road, with Chandkheda, Motera, Koba Circle, and the Narmada Canal nearby. LuLu plans to build a large mall here. The United Arab Emirates (UAE)-based company made the highest bid of Rs. 78,500 per sq m during the e-auction on June 18. The company was set to pay Rs 519 crore, exceeding the base price of Rs 502.87 crore.

According to a report, a senior AMC official acknowledged that the necessary formalities for executing the auction of most of these plots had not been completed. The delay appears to be mainly due to complications related to the land parcel sold to the LuLu Group in Chandkheda.

While the deal has been finalized, the AMC has yet to transfer complete possession of the plot. Efforts are ongoing to hand over approximately 55,000 sq m of the land to LuLu out of the 66,168 sq m that was auctioned. DeshGujarat