<p>The critical area of housing/affordable housing has not been seriously addressed in the budget.</p>.<p>It has been acknowledged in the budget that though the focus and efforts are in the direction of providing ‘shelter for all’ by 2022, the position of incomplete projects, half-constructed houses coming under the affordable housing segment under PMAY schemes, undertaken by Rajiv Gandhi Rural Housing Corporation (RGRHCL) is pathetic. This is across the state. More agonising are the misuse of funds, multiple beneficiaries, corruption in the allotment of houses, poor quality of work, wrong claims, etc.</p>.<p>Hence, the priority seems to be to complete the projects on a war footing and to bring numerous housing schemes under various nomenclatures, including 2 centrally sponsored, under 3-4 dedicated schemes under the umbrella of affordable housing. For this and to build an additional 2 lakh houses under the EWS, LIG, MIG1&2, an outlay of Rs 2,500 crore has been earmarked in the present budget. This is in addition to Rs 1,000 crore loan lent to RGRHCL during 2019-20.</p>.<p>Housing Minister Somanna has earlier lamented on the grave issues plaguing the implementation of housing schemes and wants to revamp the system.</p>.<p>Beneficiaries under various housing schemes have mortgaged their title deeds with RGRHCL for 10 years. RGRHCL has not released the mortgage for various reasons even after the lapse of 10 years. The CM has announced in the budget that wherever houses have been completed and 10 years have elapsed, the mortgage with RGRHCL will be treated as ‘deemed release’. Though a ‘popular’ announcement, this will have serious repercussions as the non-release of mortgage by RGRHCL can be for valid reasons, such as pending payments, default in loans to banks/HFCs as RGRHCL would have ceded second charge/pari passu to banks /HFCs, suspected frauds, illegal tenancy and fake beneficiaries.</p>.<p>Another ‘benefit’ to boost affordable housing is a reduction in stamp duty on first-time registration of new apartments costing less than Rs 20 lakh from the existing 5% to 2%. This is an eyewash as it is not in sync with any of the established parameters of affordable housing. For getting the benefit of GST of 1% under the PMAY/CLSS, the value of the apartment reckoned/stipulated is Rs 45 lakh with carpet area restriction of 60 sq mts in non-metros and 90 sq mts in 6 metros. For meaningful and desired results, to promote affordable housing, CM should have at least matched the apartment cost and capped it at Rs 45 lakh. Moreover, what kind of apartment/quality will anybody get for Rs 20 lakh?</p>.<p>Instead, the budget should have come out with a white paper on housing/affordable housing, targets versus achievements, number of beneficiaries residing in the affordable houses and not mere allotments (many are not occupied and are in dilapidated condition), and single-window approvals for builders who are struggling with huge inventory of 3 lakh apartments and their loans turning into NPAs for lack of sales.</p>.<p>(The writer is a former banker)</p>
<p>The critical area of housing/affordable housing has not been seriously addressed in the budget.</p>.<p>It has been acknowledged in the budget that though the focus and efforts are in the direction of providing ‘shelter for all’ by 2022, the position of incomplete projects, half-constructed houses coming under the affordable housing segment under PMAY schemes, undertaken by Rajiv Gandhi Rural Housing Corporation (RGRHCL) is pathetic. This is across the state. More agonising are the misuse of funds, multiple beneficiaries, corruption in the allotment of houses, poor quality of work, wrong claims, etc.</p>.<p>Hence, the priority seems to be to complete the projects on a war footing and to bring numerous housing schemes under various nomenclatures, including 2 centrally sponsored, under 3-4 dedicated schemes under the umbrella of affordable housing. For this and to build an additional 2 lakh houses under the EWS, LIG, MIG1&2, an outlay of Rs 2,500 crore has been earmarked in the present budget. This is in addition to Rs 1,000 crore loan lent to RGRHCL during 2019-20.</p>.<p>Housing Minister Somanna has earlier lamented on the grave issues plaguing the implementation of housing schemes and wants to revamp the system.</p>.<p>Beneficiaries under various housing schemes have mortgaged their title deeds with RGRHCL for 10 years. RGRHCL has not released the mortgage for various reasons even after the lapse of 10 years. The CM has announced in the budget that wherever houses have been completed and 10 years have elapsed, the mortgage with RGRHCL will be treated as ‘deemed release’. Though a ‘popular’ announcement, this will have serious repercussions as the non-release of mortgage by RGRHCL can be for valid reasons, such as pending payments, default in loans to banks/HFCs as RGRHCL would have ceded second charge/pari passu to banks /HFCs, suspected frauds, illegal tenancy and fake beneficiaries.</p>.<p>Another ‘benefit’ to boost affordable housing is a reduction in stamp duty on first-time registration of new apartments costing less than Rs 20 lakh from the existing 5% to 2%. This is an eyewash as it is not in sync with any of the established parameters of affordable housing. For getting the benefit of GST of 1% under the PMAY/CLSS, the value of the apartment reckoned/stipulated is Rs 45 lakh with carpet area restriction of 60 sq mts in non-metros and 90 sq mts in 6 metros. For meaningful and desired results, to promote affordable housing, CM should have at least matched the apartment cost and capped it at Rs 45 lakh. Moreover, what kind of apartment/quality will anybody get for Rs 20 lakh?</p>.<p>Instead, the budget should have come out with a white paper on housing/affordable housing, targets versus achievements, number of beneficiaries residing in the affordable houses and not mere allotments (many are not occupied and are in dilapidated condition), and single-window approvals for builders who are struggling with huge inventory of 3 lakh apartments and their loans turning into NPAs for lack of sales.</p>.<p>(The writer is a former banker)</p>