Ahmedabad: On Oct 28, 2024, the Sabarmati Riverfront Development Corporation Ltd (SRFDCL) approved the sale of development rights for a plot near Vallabh Sadan on the western side of the Sabarmati Riverfront for Rs 156.13 crore. However, in a subsequent meeting on Nov 28, 2024, the bidder’s request to modify the construction plan in the original RFP (request for proposal) and issue a letter of allotment was approved.
This alteration after the sale of the development rights resulted in a profit of crores of rupees for the bidder, sparking controversy. Officials from the SRFDCL have been accused of unlawfully benefiting the bidder.
On Sep 13, the SRFDCL issued an RFP for the sale of development rights for two plots on the Sabarmati Riverfront. An auction was announced for the development rights of a plot near Vallabh Sadan on the western side and another near Lemon Tree Hotel on the eastern side.
The sale of development rights for a 60,050 sq m construction on a 4,420 sq m plot near Vallabh Sadan was decided. The base price for development rights was set at Rs 23,676 per sq m. Two companies submitted bids, with a Mumbai company offering Rs 26,000 per sq m, which was the highest bid, thus securing the development rights. The auction for the plot near Lemon Tree Hotel on the eastern side was cancelled due to a single bid.
Sources from the SRFDCL stated that after the Mumbai company purchased the development rights, meetings were held between the company’s representatives and the corporation’s officials.
The bidder company requested changes to the construction plan in the original RFP, which were approved in the meeting held on Nov 28, 2024.
“If the RFP was issued with these changes initially, the sale could have fetched a higher amount,” said an official.
This alteration to the RFP resulted in a profit of crores of rupees for the bidder company, particularly concerning changes in the construction plan related to the public utility.
Sources further stated that in the standing committee meeting held on Jan 9, the proposal for selling the development rights of the plot at Vallabh Sadan was submitted. However, there was no clear mention of the approval for changes in the construction plan shown in the original RFP.
Sources mentioned that during a pre-bid meeting on Sep 30, before the sale of development rights for the plot at Vallabh Sadan, representatives of private companies raised queries regarding parking and experience criteria, leading to a decision to amend the experience criteria for the development rights of the two plots. However, no queries were raised about changes to the construction plan in the original RFP during this meeting. Consequently, the highest bidding company was issued an LOA with changes to the construction plan in the original RFP, which sources fear could result in a loss of crores of rupees for the SRFDCL.