Pawning EWS interests

Rajmeet Singh

With an eye on the Assembly elections, the Punjab Government seems to be going all out to appease the builder lobby in the state. Receiving the state largesse this time around are the erring builders who have failed to fulfill the commitment on constructing affordable houses for economically weaker section (EWS) on designated pockets in their mega projects in the state.

Real estate industry sources reveal that after the builders approached the state government, expressing inability construct the EWS houses as it was not only viable but was also affecting the saleability of their high-end flats and plots, the state has come out with a formula that would enable the builder to use the same chunk of land for general housing.

As per the decision, the government, after taking back the designated chunks of land for EWS housing from the builders, would auction the same in the open market — enabling the builder concerned to buy the land again. The money collected by the government would be used to build the EWS houses elsewhere.

“The new policy keeps the door open for the builder to buy back the same chunk of land that was earlier marked as reserved for EWS housing”, said a senior official in the state urban housing department. Over 300 acres of land, otherwise reserved for EWS housing in around 35 different mega projects housing projects across the state will be auctioned now under the new policy.

The official said since the builders had been objecting to EWS flats or plots coming up next to their high-end houses, the authorities were contemplating to construct the EWS house or flats on chunk of land outside the projects. The sale proceeds from the auction would be used to construct the EWS houses.

Of the total mega projects approved by the housing department, the major chunks reserved for EWS houses in different urban estates in Punjab are: Mohali (219 acres); Amritsar (14 acres); Ludhiana ( 48 acres); Bathinda (9 acres); and Patiala  (11 acres).

By allowing auction, the realtors can better utilise the land that was earlier blocked. An official while defending the decision said real estate industry was stagnating in the state for the past several years and there were very few buyers for projects.

The Punjab Urban Planning and Development Authority (PUDA) has already identified the chunks of land in its urban estates across the state. The process of retrieval of land from the builders has already begun.

Incentive already given to realtors