Hyderabad: State government employees have blocked the sale of 3,500 Rajiv Swagruha flats — which have remained unsold since 2009 — to the general public.
The government had offered to sell the 2BHK and 3BHK flats to employees for a concessional price of Rs 1,900 per sq feet at Bandlaguda and Rs 1,700 per sq feet at Pocharam against the market price of Rs 3,500 per sq. ft.
The Rajiv Swagruha Corporation had earlier fixed the price at Rs 2,500 at Bandlaguda and Rs 1,909 at Pocharam project on a cost-to-cost bases and sought open auction of flats.
An open auction was held last year. Though some people expressed their willingness to purchase the flats at Rs 2,000 at Bandlaguda, the government refused to reduce the price.
The strong employees lobby then brought pressure on the government to sell these flats only to state staff at concessional rates. Despite the government reducing prices, the associations are insisting on a further price cut.
The government has the opportunity to offer these flats of the general public. Following directions from Chief Minister K. Chandrasekhar Rao that these flats should be offered to government employees first and leftover flats should be offered to the general public, the housing department is in a dilemma over how to proceed on this further.
“It’s nearly 10 years since the construction of these flats bagan. While some flats are ready, the others are semi-complete. Even in completed flats, buyers have to take up some renovation works as they are 10 years old. That is why we are seeking a price cut. The CM has promised flats to employees in recognition of their active participation in the statehood movement,” said Mr Karem Ravinder Reddy, president, TNGOs Association.
Housing minister A. Indrakaran Reddy said, “They are seeking a further rate cut which is under the consideration. We will offer flats to the public only in case they remain vacant after the employees purchase them,” Mr Reddy added.
The Rajiv Swagruha Corporation owes nearly Rs 1,000 crore to banks on which it is paying nearly Rs 200 crore as interest every year.
