Pradhan Mantri Awas Yojana: Curbing unfair practices: Lock-in period mulled for sale of house under PMAY (U)

By: | Published: August 23, 2018 4:12 AM

The Ministry of Housing and Urban Affairs is planning to introduce the provision of a lock-in period of five years for sale of houses under the Pradhan Mantri Awas Yojana.

 

rera, housing sector, pmayIn the MIG-1, an interest subsidy of 4% is provided for loan amounts up to Rs 9 lakh while in MIG-2

The Ministry of Housing and Urban Affairs is planning to introduce the provision of a lock-in period of five years for sale of houses under the Pradhan Mantri Awas Yojana (Urban), a senior government official said.

“We got reports that many people are taking undue advantage of this scheme… The government wants to ensure that there is no misuse of funds,” the official said.

Beneficiaries of the scheme are entitled to subsidy in the form of loan at cheaper rates for buying properties.

“Some people opt for this scheme, and after getting possession they sell these homes at higher rates.

This unfair business tactic defeats the actual aim of the developmental scheme,” the official said.

Launched on June 25, 2015, the aim of the PMAY is to bridge the gap in housing demand and supply in urban areas in respect of economically weaker sections, low and middle income groups, and meet the target of ‘housing for all’ by 2022.

So far, the government has approved construction of a total of 53.7 lakh houses, and close to 30 lakh dwelling units have already been grounded and are in various stages of completion. Over eight lakh houses have already been completed.

In a bid to boost affordable housing, the government has introduced a number of initiatives. It has increased the carpet area of houses eligible for interest subsidy under the Credit Linked Subsidy Scheme for the middle income group beneficiaries. In the MIG-1 category of CLSS, the carpet area has been hiked from 120 square metre to up to 160 square metre. In respect of the MIG-2 category, it has been raised to up to 200 square metre from 150 square metre.
The CLSS for MIG covers two income segments – MIG -I (Rs 6,00,001-12,00,000 per annum) and MIG II (Rs 12,00,001-18,00,000 per annum).

In the MIG-1, an interest subsidy of 4% is provided for loan amounts up to Rs 9 lakh while in MIG-2, an interest subsidy of 3% is provided for loan amount of Rs 12 lakh.

The official said the government had released Rs 1,424.59 crore under the CLSS of the PMAY(U) in the current year while Rs 2,481.56 crore was released in the previous fiscal.

According to the ministry, the Centre has approved an assistance of Rs 78,008.36 crore under the PMAY(U) during the last three years.

Of this, `27,653.18 crore has been sanctioned and released and Rs 9,565.06 crore has so far been utilised since the launch of the scheme.

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