‘Simple relief’ for EWS, LIG defaulters, Real Estate News, ET RealEstate

October 5, 2023

LUCKNOW: In a major relief to people from economically weaker sections of the society, the Lucknow Development Authority (LDA) on Wednesday announced that it will no longer charge compound interest from defaulter allottees of the EWS and low-income group (LIG) houses and shops measuring up to 20 square metres.

During the 179th board meeting of the LDA, the authority tabled a proposal that aims at providing relief to the allottees of houses and shops under EWS, LIG, and Pradhan Mantri Awas Yojana.

LDA was of the view that the compound interest levied on installments and penalty in case of default was an impediment in the recovery of dues from allottees.

The proposal was approved by divisional commissioner Roshan Jacob who also holds the additional charge as the LDA chairperson.

“In many cases, it is not possible for EWS and LIG allottees to repay the amount as per the calculation, including penal interest. To give respite to these allottees, a proposal was presented and has been passed by the board. Now, the defaulting allottees will be exempted from penal interest and only simple interest will be charged at the rate determined at the time of allotment,” said Jacob.

The announcement comes a year after LDA lowered the interest rates and increased the EMI period from two to five years.

Meanwhile, LDA has also decided to freeze the price of flats being sold under the first-come-first-served scheme. This, according to officials, will increase demand for vacant flats and woo buyers who have been close-fisted due to rising prices of real estate in the last one year.

“For a year, the prices of all our 2,630 flats have been frozen and will be available at old rates. We hope this will encourage buyers to take up vacant flats,” said LDA vice-chairperson Indramani Tripathi.

  • Published On Oct 5, 2023 at 03:00 PM IST

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