However, the Government’s “Housing For All” Policy so far hardly paid any attention towards the Housing needs of the Middle class. Therefore, the current move of the state towards the crying housing needs of the middle class is in the right as they have neither the state patronage nor the money /muscle power.
Added to all these is the sudden rise in the interest rates of the Housing loans which appeared like a bolt from the blue. For those who have already availed the housing loan, the repayment burden will be a mill-stone around their neck for a long time to come. For those who have not availed the loan, the fear of higher interest is both a deterrent to avail a loan as well as an avoidable additional burden.
The state has a moral responsibility for the formulation of a feasible and pragmatic housing scheme and a policy and their effective implementation. The Habitat Policy drafted way back in 1998 aimed to address the issues of sustainable development, infrastructure and for strong public-private partnership for shelter delivery. It envisaged an additional two million dwelling houses per annum to create surpluses in housing stock if the draft plan is to be believed. Accordingly, the government made several fiscal concessions and implemented numerous reforms in the Housing regime. The Government created an Urban Reforms Incentive Fund to have reforms in the urban sector in 2002. The investment by the Non-Resident Indians (NRIs) and the Persons of Indian Origin (PIOs) was approved in 2003. In 2005, the Government allowed Foreign Direct Investment up to 100% in certain categories of Construction sector. So, few can blame the government alone for the sorry state of affairs in this sector.
However, these policy initiatives and the Housing reforms did not have a salutary effect on the cost of the housing. Conversely, the realty prices have rocketed upward by leaps and bounds. Today, the so-called posh and urban areas are beyond the reach of the ordinary people. The higher wages of the IT workers and the rosy sides of the globalisation are said to be the factors behind this real estate boom. That is not the question here. The moot point is as to why the ordinary people are deprived of their share in the development and growth of the urban centres over which they too have a legitimate share. From this point of view, the decision of the State government deserves full compliments and support. Nevertheless, what is to be seen is how feasible it will be to implement this 15% Housing Quota reserved for the middle class. The bureaucrats-builder nexus can jeopardize the scheme through devious and ingenious ways. Therefore, the scheme must have adequate checks and means to prevent any such mischief.
1 comment:
With the quota system in the housing sector we are inviting more problems. We will find that the rich with political connections are bagging the chunk of the benefits. The construction industry is dominated by the political force having underworld connections. They fix an astronomical price for a flat and pretend that they have lot of buyers even at that price. The buyer is caught in the net and pleads for a discount. The srcupulous builder shows mercy with 10% disount. So follow the others. At 25 to 40 percent bookings, the builders gets the funds required for the construction. Once the constructions start, the prices are sky-rocketed from the original price and fictitious bookings are shown. This is the tactics being used majority of the builders. The builder is not directly involved. The assignment is contracted. This secret was discovered during my association with a real estate consultant who is a former officer of the RAW. His average monthly income is Rs.20,00,000/-. He does nothing but takes up the task of marketing of the flats which are to be constructed. He uses his marketing skill as eloborated above. The same strategy is followed by most of the builders.
Socialism in this country will only remain as a Preamble to Constitution.
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