After a back-foot of provide builders, the Ghaziabad Development Authority has cancelled its EWS/LIG housing schemes 2014. The authority asked the private developers to construct 10% flats for economical weaker section and lower income group, but due to some reasons, they failed to deliver the flats.
A notification has been published by the authority on their official website for the same and the now GDA has decided to immediately refund the registration amount to applicants. The estimated refund amount of Rs. 28 crore would be refunded by the authority to all applicants.
According to the statement of GDA official, the amount would be returned to the applicants without any interest as it will be refunded within a year of launch of the scheme. The condition of refunding amount already included in the application brochure.
The Chief Architect and Town Planner of the Authority, Mr. Ishtiyag Ahmed said that the private developers are not in a position to deliver the flats. They have not sent us any numbering plans etc. and there has been no physical handover of flats to applicants so far. So, the special committee of GDA recommended cancellation of the scheme.
The applications for LIG and EWS schemes were invited between 1 November to 31 December 2014. The code of the scheme was 002 and 1979 multi-storey flats was to be allotted to EWS and LIG applicants.
According to the source, GDA have identified nearly 20 private developers who failed to construct flats and a number of these developers are from upcoming Raj Nagar Extension (RNE) area. The source said that an action will be taken by the authority against these developers.
“We will not be issuing completion certificates for their projects as they have flouted government directions. The developers have also kept some part of their land and bank guarantee with us. We are exploring possibilities to hold these back,” Ahmed said.
As per the conditions of the scheme, the extra floor area ratio (FAR) were offered to the projects ranging from 4,000 square meter to 40,000 square meter if they include EWS and LIG flats and it was mandatory to include such flats for 40,000 square meter and above size projects.
On this, the developers said that have acted in accordance with a 2013 government order which allowing them to pay the GDA a ‘shelter fee’ if they didn’t construct such flats. In such a case, the authority had to develop the flats from the shelter fee received.
Gaurav Gupta, General Secretary of Confederation of Real Estate Developers Association of India (Credai) quoted that our area (RNE) has very few of projects that are 40,000 sqm or more in area. Several developers have already paid the shelter fee. Other developers are developing the flats as they are bound by the conditions.