The scheme aims at achieving the vision of ‘Housing for All’ by 2022. However, the government has neither initiated screening process nor has adopted any procedure to filter out the tainted builders, who have duped investors. As a result, many of these builders are advertising their projects in the name of PM’s scheme, without clearance from the government.
Under the scheme, the government and private sector together will launch housing projects, of not less than 250 dwelling units, and in which 35% will be earmarked for Economically Weaker Sections (EWS). The maximum annual income to be eligible for the scheme is Rs 3 lakh for EWS and Rs 6 lakh for LIG (Low Income Group) category.
A source familiar with the real estate sector, told The Sunday Guardian that there are complaints regarding collection of cash from the poor for providing EWS houses. “Cases of fraud are taking place, including in Delhi NCR, for allocation of houses under the PM Awas Yojana. Unscrupulous builders and NGOs are making false promises that houses could be booked by just paying Rs 150,” he said.
Sources said the Ministry has received such complaints in which many builders have been found misusing the name of government’s scheme to sell their flats. “The ministry has taken note of this and advisories will be issued soon”, a source said.
The PM Awas Yojana website has put up a notice saying that a demand survey is conducted by urban local bodies, free of cost. “This is for information of the general public that this Ministry has not authorized any private entity or person to collect money as a consideration for availing of any benefit under the PMAY (U) Mission. The citizens are advised to verify with the Ministry officials in case of any doubt in this regard,” the website notice reads.
Taking a serious note of such cases, Parliamentary Standing Committee on Urban Development, headed by Biju Janta Dal MP Pinaki Misra, has recommended to Ministry of Housing and Urban Poverty Alleviation (HUPA) that such cases should be “immediately investigated and deterred” so that poor people are not cheated.
In its report, tabled in Parliament recently, the committee noted that a lot of bogus builders/developers are apparently registering and enlisting a lot of consumers for allotment houses under the scheme. “The Ministry should immediately swing into action and get such complaints thoroughly investigated in all States and UTs as one of their prime schemes is being misused for illegal money making by some corrupt minded anti-social elements. Any delay in catching those involved, will give them liberty to rob millions of more poor and have-nots of the society. If unchecked, poor and homeless masses will feel cheated and betrayed and also it will be difficult for them to trust any of the Government schemes henceforth,” the report said.
The committee also suggested that aggressive awareness programmes through visual and print media should also be launched immediately to educate and inform common people to beware of such fraudulent persons/NGOs.
According to Abhay Upadhyay, convenor of ‘Fight for RERA’ a group working to protect the interests of homebuyers, these private companies operates on super abnormal profit model which goes against the spirit of affordable housing since no cap has been fixed on pricing of dwelling units in the government’s affordable housing model.
In a letter written to Prime Minister Modi, Upadhyay has asked the government to involve public sector undertakings in the scheme. “There are PSUs like NBCC which are directly into residential construction, beside other navratna companies, which have big land holdings and are also cash rich. They can be assigned the task for affordable housing. Through your own PSUs, pricing can also be regulated to a large extent which will make affordable housing truly meaningful,” the letter read.
“You may be aware that, in the recent past Mr. Sanjay Chandra and Mr. Ajay Chandra of Unitech Group, Gurugram and Mr. K R Anerudhan of CASA Grande Pvt. Ltd. Chennai, beside many others, have been arrested for failing to handover possession despite taking money. There are many who are facing criminal and civil cases, including tax evasion cases, with the Economic Offences Wing (EoW) of the Police, National Consumer Forum / State Forum / District Forum, Tax Tribunal, High Court, Supreme Court etc. Many of them are either heading or have headed organizations such as NAREDCO and CREDAI,” Upadhyay added in the letter.
CREDAI remained unavailable for the comment despite repeated attempts by this correspondent