The auction was the DMC's dream come true
In an auction held by the District Municipal Corporation, a ten-foot shop in Sheikhupura's monthly rent was eventually fixed at a whopping Rs1.25 billion after four marathon hours of bidding.
DMC Sheikhupura has started auctions to rent out its shops in an effort to increase its income.
The bids to rent the shop started from Rs22,000 – its last rent. But the auction ended in a competition between two traders, who kept bidding higher and higher to eventually hit Rs1.25 billion.
Ahmed Khursheed, who won the auction, was frustrated with the administration for letting the process take an ugly turn. He said that his father started a crockery business at the same shop sixty years ago.
“I have now been running the shop,” he said. “Obviously, the bidding amount can’t be paid. The administration has to review it. The other group maliciously let the bidding continue while quoting a fake amount."
The bidders had to submit Rs50,000 to participate in the auction. This means that if the successful bidder forfeits to the amount he bid for, he would only lose Rs50,000.
According to an assessment, the shop’s worth is notmore than Rs10 million.
The government rates for a 10-marla shop is Rs4.5 million. The shop that came under the hammer was not more than five marla.