How low income group person would pay monthly installment of Rs. 84,000? Asks Congress to AMC

Ahmedabad, 4 December 2014

Congress party has opposed higher cost of affordable housing units constructed by the Ahmedabad Municipal Corporation(AMC).

In a statement, leader of opposition in AMC Badruddin Sheikh said the AMC has conducted draw for 4,937 LIG(low income group)units at 11 locations.

Each unit costs Rs. 10.50 lakh + maintenance + documentation cost(Dastavej).

Moreover, beneficiaries are to get 45 sq.m space per unit for which they are asked to pay Rs. 20,000 with form.

For LIG group, maximum income per year should be Rs. 1 lakh to 2.5 lakh. After allotment, beneficiaries were asked to pay Rs. 1.90 lakh.

AMC has now asked to pay 10 equal installments in 10 months. It means every month one would have to pay installment of Rs. 84,000 which is impossible of those having annual income limit of Rs. 1 lakh to Rs. 2.50 lakh.

Sheikh said this is like cruel joke for poor and middle class people.

Those beneficiaries who are unable to pay installment will need to pay loan at higher rate of 10.75% which comes to over Rs. 3 lakh payable interest.

He further said that in single unit, one sq.m construction cost comes to Rs. 24,444 while in any area of Ahmedabad even if you construct one sq.m luxuriously, it costs around Rs. 10,000. Thus ruling BJP has fooled poor and middle class people in the name of providing affordable housing. Ruling party has only given benefit to contractors, builders and banks associated with it.

He said if BJP has actual concern for poor and middle class people it should announce Rs. 5,000 installment per month. He said most people who were selected in draw want to exit from scheme.Ruling BJP should simplify installments.