CIDCO hsg scheme allottees protest against high prices, smaller area

Navi Mumbai: A massive protest was held in Vashi on Tuesday by allotees of apartments under the City and Industrial Development Corporation’s (CIDCO) mass housing scheme, My Preferred CIDCO, over escalated prices and reduced size of allocated flats. Protestors, including women, marched from Chhatrapati Shivaji Chowk to Arenja corner, formed a human chain there, and symbolically chained a photo of the CIDCO head office while raising slogans demanding a reduction in prices.

The protest was organised by the Maharashtra Navnirman Sena (MNS), whose functionaries said party chief Raj Thackeray would take up the issue in due course if required.

“CIDCO should reduce prices of flats by at least 30%,” said MNS Navi Mumbai chief Gajanan Kale.

CIDCO had in October last year initiated online registration for around 26,000 apartments as part of the ‘My Preferred CIDCO’ scheme. The homes, being built under Pradhan Mantri Awas Yojana (PMAY), were placed in two categories – EWS, meant for applicants from economically weaker sections whose annual income was less than ₹6 lakh; and LIG, meant for applicants from low-income groups whose annual income was above ₹6 lakh.

Over 150,000 applicants signed up for the scheme online by paying a registration fee, hoping to get one of 26,000 flats on offer at subsidised rates. But they were shocked when CIDCO announced in January this year that EWS category homes would cost ₹25-48 lakh while LIG category homes would cost ₹34-97 lakh, besides additional charges for floor rise, registration and stamp duty. These rates were on par or higher than market rates in areas where the flats are coming up.

Despite appeals and a signature campaign by applicants seeking a reduction in prices, CIDCO refused to budge. Consequently, only 21,000 out of the 150,000 applicants paid the booking amount, and were allocated flats, at times in areas far away from their preferred location. Around 8,000 of the 21,000 applicants who paid the booking amount did not choose a preferred location and were allocated flats based on availability, said CIDCO officials.

CIDCO did not respond to HT’s requests for a comment on the protest and allottees’ demands.

Meanwhile, letters of intent (LoIs) issued by CIDCO showed the flats were smaller than what had been advertised, participants at Tuesday’s protest told Hindustan Times.

Akshay Jadhav, who has been allocated a flat in Kharghar, said that while CIDCO initially claimed the flat would measure 29 sqm (square metres) or 322 sqft (square feet), the LOI said it would measure only 27.12 sqm or 290 sqft.

CIDCO claims that balconies in allocated flats have been excluded from the calculation as per Real Estate (Regulation and Development) Act norms, but Jadhav and others alleged they had been misled.

“Why were we not told about it earlier? CIDCO is talking in the language of private developers,” said Jadhav.

Sagar Mule, who has been allotted a flat in Kalamboli, said CIDCO had assured applicants of affordable homes under the EWS and LIG categories while launching the scheme. “We have been cheated both in terms of price and area,” he said.

Advocate Asmita Tevar, who has been allotted a flat near Vashi truck terminus said, “If we could afford flats worth ₹1 crore, why would we wait for years for a CIDCO scheme?” He said that while private developers purchase land at high prices, CIDCO got land “for peanuts” in the 1970s. “Yet, their homes are priced way above ₹40 lakh, which we can afford,” said Tevar.

Rahul Salvi, the only bread earner of his family, said he was thinking of surrendering the flat allocated to him as it was priced at ₹74 lakh.

“How does someone earning less than ₹25,000 afford such a flat, or even get a loan? I have no option but to surrender the flat if we do not get some relief,” said Salvi.

“It is obvious that the scheme has failed to meet its objective,” said Kale from MNS. “Even MHADA flats in Kurla are available for ₹50 lakh. The flats here (in Navi Mumbai) are costlier, which does not make sense.”

The MNS will intensify the protest by sending postcards enlisting allottees’ demands to CIDCO officials over the next few days. “We will also take out an ‘injection’ morcha to the CIDCO head office to bring officials to their senses. If needed, our party chief will take up the issue,” said Kale.