GDA illegally selling homes made for EWS

March 03, 2010

Vishnu Rageev R

Ghaziabad Development Authority (GDA) has allegedly sold around 2,500 homes illegally which were under construction for economically weaker section (EWS) in Vijay Nagar area of Ghaziabad. Priced as less as Rs 1.5 lakh, these 1BHK homes in Bhago Colony here are purchased by upper middle class and HNI’s from New Delhi, Gurgaon, Noida and Faridabad. Interestingly, the only proof required to book home is just a local ration card that too sourced by real estate brokers operating in the area, people familiar with the matter told Property Pulse.

“At present, there is no house left in Vijay Nagar’s Bhago Colony. You have to wait till May to see whether there’s any cancellation, but chances are less because who’s going to get rid of this mega offer. Give us your contact details, there are similar new schemes coming up and we will be in touch with you,” a local property broker said when Property Pulse visited his office to learn more about the developments.

When asked about the details of location and project, he added, “Earlier, this 6-7 acre land was being occupied by poor slum-dwellers. Mayawati government freed this area by pulling them out. That is why it is called Bhago Colony. Since her government is sloganeering for poor, they had later come up with this scheme to re-settle those who lost their land and house here. However, nobody knows who has left and who’s going to buy, so we are in the business.”

When contacted by Property Pulse, Narendra Kumar Chaudhary, vice chairman, GDA said he is unaware of any such illegal activity happening there. “If we receive any complaints, we will take stringent action against the culprits.” Chaudhary declined to comment, when asked about their criterion for allotting flats to EWS. Also, an e-mail sent to GDA elicited no response at the time of filing this report.

According to local property brokers, mostly Delhiites and people from Faridabad, Noida, and Gurgaon have heavily invested in this scheme. “You just need to pay Rs 30,000 initially. We will make a local ration card for you which is necessary for booking in this scheme. Further, you need to pay another Rs 60,000 at the time of possession in July. Besides, another Rs 1.5 lakh has to be paid to government as installments.”

When contacted, a buyer from Delhi, who did not want to be identified, said, “Actually, there is no risk involved in this transaction because the brokers are ready to repay us Rs 30,000 (the booking fees) at any time. Also, there is less paper work involved in this when compared with other similar deals. The brokers get us a ration card and that is the only thing required to book a home here. We are likely to get the documents in a week or two.” This person works as a manager in a retail shop in South Extension, New Delhi.

He further told that three of his colleagues have invested in this scheme. “My colleague’s brother works in a property brokerage house in Ghaziabad and that is how we came to know about this mega scheme. I was so happy when I saw the house which was under construction. Where will we be able to get a 400-450 sq ft house for Rs 2.5 lakh? Most importantly, these houses built on two floors (ground floor and first floor) can be extended further and made large,” he quipped.

“However, the government-fixed original price of a flat here is Rs 1.5 lakh. The initial amount of Rs 30,000 and the Rs 60,000 paid at the time of possession will be divided amongst the property brokers and GDA officials involved. Meanwhile, if you are an SC/ST, then the prices will again come down,” said another person who has also booked a flat.

“The brokers need to pay money starting from Luckow to regional government offices in Ghaziabad. They say they get very less in this,” he added. His brother is a broker in the area.

When enquired about his plan after possession, he said, “A normal family can stay there. It’s not that far as well. It just takes 45-50 minutes to reach there from Akshardam temple. However, I am planning to sell it off after 3-4 months. I am sure I will fetch at least Rs 5-6 lakh by that time.” He currently stays in a rented house in Delhi.

According to another property broker operating in the area, “The price of 1 BHK flat in Vijay Nagar is currently pegged at Rs 6 lakh. So it’s a good and riskless investment option. There are many families here who had booked flats in the name of more than one member.”