Trust moves to monetise 18-year-old white elephant
The Ludhiana Improvement Trust (LIT) has decided to split a large commercial building on Rani Jhansi Road into individual shop-cum-office (SCO) units and sell them separately after repeated attempts to sell the entire block failed. The complex — developed roughly two decades ago — has remained unsold and underused, and the Trust hopes the new approach will attract buyers and revive the property.
The property, spread over 2.2 acres, was constructed around 2008 by Deepak Builders but has not found a buyer in the intervening years. Previous auctions and tenders did not elicit bids, including a recent attempt when the reserve price was reduced to ₹182 crore. Facing ongoing neglect, the building has fallen into disrepair and has reportedly become a shelter for drug users, creating additional civic and safety concerns.
“The state government and the Trust have decided to sell the SCOs in the building as separate units to individuals,” said LIT Chairman Tarsem Bhinder, according to The Tribune.
Administration to fix reserve rates and auction plan
Mr Bhinder told The Tribune that the LIT will fix reserve prices after consulting the district administration and referencing the applicable district collector (DC) rates. Officials hope the lower entry price per unit will make individual SCOs more attractive to small investors, traders and entrepreneurs who were deterred by the high ticket price of the entire complex.
- Property size: 2.2 acres
- Built by: Deepak Builders (circa 2008)
- Recent reserve price for whole complex: ₹182 crore
- Time unsold: about 18 years
LIT officials highlighted that tenders floated last month attracted no bidders. The Trust now plans to convert the internal layout to discrete SCOs — a common format in Punjab towns where mixed retail and office spaces appeal to local traders and professionals. Breaking a large asset into smaller saleable units is seen by urban planners and municipal authorities as a pragmatic way to convert idle municipal land into productive assets.
| Item | Detail |
|---|---|
| Area | 2.2 acres |
| Constructed | c. 2008 |
| Recent reserve (whole) | ₹182 crore |
| Years unsold | ~18 years |
Local impact and next steps
For Ludhiana traders and small investors, SCOs typically offer manageable financing and quicker occupation compared with acquiring an entire multi-crore complex. If priced sensibly, the split units could revive commercial activity along Rani Jhansi Road, create rental and business opportunities and deliver revenue that the Trust has been unable to realise for nearly two decades.
However, the conversion and sale process will require careful oversight. Authorities must ensure clear title, updated land-use approvals and compliance with building and safety norms before handing over units. The Trust’s consultations with the district administration to set reserve prices will be closely watched by local chambers of commerce and potential buyers.
Beyond immediate sales, bringing the property back into active use could address the social concerns associated with its neglect. An operational commercial complex would reduce opportunities for antisocial activities, improve street-level surveillance, and contribute to municipal income streams that can be reinvested into city services.
The LIT did not provide a timetable for completing the division of the complex or the schedule for forthcoming auctions. Officials said reserve prices for individual units will be announced after the district administration reviews DC rates and other valuation metrics, following which the Trust intends to relaunch the sale process.
