‘lmc Losing ₹17cr Every Year Due To Ahana Housing Project’, ET RealEstate

July 22, 2023

LUCKNOW: A group of corporators has alleged that Lucknow Municipal Corporation (LMC) is grappling with a substantial burden of Rs 17 crore per annum as the ambitious Ahana Enclave housing project failed to meet its completion deadline of 2022. They also raised the issue before mayor Sushma Kharkwal during the first executive committee meeting.

Corporator from Ismailganj-I ward, Mukesh Singh Chauhan also wrote a letter to the mayor, alleging that the project, estimated to cost Rs 291 crore, aimed to facilitate the development of 684 flats and 24 shops in Aurangabad Khalsa on Raebareli Road, with a completion date set for December 2022.

For it, the government granted Rs 35 crore from the revolving fund and an additional Rs 200 crore was obtained through municipal bonds in November 2020. Furthermore, the allocation of 153 flats contributed an extra Rs 20 crore to the funding.

He said LMC is now losing annual interest payment of Rs 17 crore on borrowed funds and has already paid Rs 42.5 crore as interest collected through property taxes. About 78% of the flats are unsold.

Chauhan emphasized, “There is urgent need for an action plan to expedite the sale of the flats and shops. This will alleviate the financial burden on the municipal corporation, preventing further losses.”

Corporator from Bashiratganj, Amit Choudhary said there was negligence in choosing the land initially. The way to the housing society was not clear and a case was pending in the high court. This caused a delay in the work. “As a result, the civic body’s plan to generate revenue from selling homes is pending. The civic body is losing money,” he said.

A former corporator from Bhawaniganj, Santosh Rai, whose wife is a sitting corporator from the ward, said that the project has become like a white elephant. The cost of the project is being borne by the residents of the city.

Meanwhile, LMC chief engineer Mahesh Chandra Verma said the project has to be completed by December 2023. “The apartments will be ready for possession within two months,” he said.

  • Published On Jul 22, 2023 at 02:00 PM IST

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