Hyderabad: The Telangana State government has finally decided to sell off Rajiv Swagruha flats in the city to government employees from August last week.
The government will incur a loss of nearly Rs 530 crore as it is selling the flats for less than the amount it took to construct them and repay bank loans.
The flats will be sold online from the last week of August.These flats were constructed during the tenure of the previous Congress government, between 2007 and 2010. Most of the flats are incomplete as work stopped midway due to a cash crunch.
After the formation of Telangana State, the government inherited a burden of Rs 1,069 crore for construction of the flats.
TS still owes Rs 256 crore to banks
The government has repaid bank loans amounting to Rs 820 crore so far. It still owes Rs 256 crore to banks.
The government expects to get Rs 545 crore through the sale of the flats, which will result in a loss of Rs 531 crore to government.
Housing minister A. Indrakaran Reddy said that selling the flats would prevent further losses that would accrue from keeping them vacant, and the sale would also benefit government employees who played a key role in the Telangana statehood agitation.
In the first phase, 2,245 flats in Bandlaguda and 1,474 flats in Pocharam will be up for sale. Only 316 flats in Bandlaguda are ready for occupation, while 1,929 flats are semi-completed. Flat buyers will have to complete the pending work at their own cost. The rate government has fixed is Rs 1,900 per sft for completed flats and Rs 1,700 for semi-finished.
In Pocharam, 969 flats are ready for occupation, while 505 flats are semi-complete. The rates here are Rs 1,700, Rs 1,500 respectively.
