Ahmedabad Municipal Corporation's Land Sale Hits Legal Roadblock
The Ahmedabad Municipal Corporation (AMC), which regularly sells plots reserved under the city's town planning (TP) schemes through online auctions, has encountered an unprecedented legal hurdle. For the first time, the Ahmedabad collector's office has ruled that even plots sold via the civic body's transparent online auction process cannot have their sale deeds executed without obtaining permission under the Disturbed Areas Act if they are located in designated "Disturbed Areas."
Multi-Crore Transaction Remains Stalled
This ruling has directly impacted a high-value transaction in the Makarba area, where a plot sold by the AMC approximately one year ago for Rs 68 crore remains in legal limbo. The sale deed has been pending for over twelve months due to the absence of the required permission under the Disturbed Areas Act, effectively stalling what would otherwise be a completed multi-crore property transaction.
Record-Breaking Auction Results
In a significant online auction conducted in June 2024, the AMC successfully sold three out of five offered plots—two located in Makarba and one in Bodakdev—for a combined total of Rs 237.42 crore. The auction witnessed particularly intense bidding activity for the Makarba plots, with over eighteen bidders competing for a single plot measuring 3,740 square meters.
The bidding competition drove the final sale price substantially above expectations. While the base price was established at Rs 80,000 per square meter, the winning bidder ultimately secured the property at Rs 1.83 lakh per square meter. This dramatic increase elevated the plot's total value from an estimated Rs 29.92 crore to an actual sale price of Rs 68.44 crore, generating a remarkable profit of Rs 38.52 crore for the municipal corporation.
Permission Requirement Creates Procedural Delay
AMC officials have explained that the delay occurred during the post-auction registration process. When the civic body initiated procedures for sale deed registration, the sub-registrar mandated that permission be sought under the Disturbed Areas Act, as the Makarba plot falls within a formally notified "Disturbed Area." The AMC has since submitted an application to the collector's office to obtain this mandatory clearance, with the sale deed processing contingent upon receiving official approval.
Questioning the Application of the Law
A retired AMC official, speaking anonymously, has raised fundamental questions about applying the Disturbed Areas Act requirements in this specific context. "The primary intent of the Disturbed Areas Act is to ensure that property sales in sensitive areas are not conducted through force, threats, or undue inducement," the official noted. "Permission is required regardless of whether buyers and sellers belong to the same community or different communities. However, in this particular case, the AMC acquired the land through TP scheme deductions and sold it via a transparent online auction. Since the AMC is a government authority itself, is it appropriate to demand disturbed areas clearance for its own auctioned plots?"
This situation highlights a potential conflict between municipal auction procedures and existing property regulations, creating uncertainty about how government-conducted land sales should be treated under laws designed primarily for private transactions in communally sensitive zones.
