LDA to ‘freeze’ cost of its flats to com­pete with pvt de­vel­op­ers

Hindustan Times (Lucknow) - - LUCKNOW - HT Cor­re­spon­dent let­ters@hin­dus­tan­times.com

LUC­KNOW : Faced with the dilemma of los­ing buy­ers’ in­ter­est in its prop­er­ties, the Luc­know De­vel­op­ment Author­ity is plan­ning to freeze the cost of its flats to avoid fur­ther es­ca­la­tion. The de­vel­op­ment author­ity plans to bring a pro­posal in this re­gard at its next board meet­ing.

Re­cently, all ef­forts of the de­vel­op­ment author­ity to dis­pose of its va­cant flats have come to a naught.

Rea­son: The flats of­fered by pri­vate de­vel­op­ers are not only cheaper as com­pared to the LDA’s flats but are also well main­tained.

Ear­lier, it was al­to­gether a dif­fer­ent story. LDA’s flats were much in de­mand and there used to be a long wait­ing list.

“The de­vel­op­ment author­ity is plan­ning to bring a pro­posal to put a freeze on es­ca­lat­ing costs of its flats in view of stiff com­pe­ti­tion from pri­vate builders,” said Jai Shanker Dubey, sec­re­tary, LDA.

On Au­gust 15 this year, the de­vel­op­ment author­ity had kicked off online reg­is­tra­tion of its prop­er­ties. The reg­is­tra­tion process would con­tinue still Septem­ber 25.

But till date, barely a hand­ful of peo­ple have shown in­ter­est in the LDA’s of­fer to book around 1,400 flats that are ly­ing va­cant. On of­fer are one bed room to three bed room flats cost­ing Rs 12 lakh to Rs 60 lakh re­spec­tively.

“Sce­nario has changed al­to­gether. Ear­lier, LDA had no com­pe­ti­tion. But now, pri­vate de­vel­op­ers are pos­ing a big chal­lenge to the LDA de­spite the fact that some of them have failed to ful­fill prom­ise to han­dover flats on time,” said a se­nior LDA of­fi­cial.

In the on­go­ing fi­nan­cial year, the de­vel­op­ment author­ity has set a tar­get to earn Rs 800 crore from sale of its com­mer­cial prop­er­ties. This seems to be a tall or­der.

“All across the city, com­mer­cial ac­tiv­ity is go­ing on from res­i­den­tial space. So, peo­ple are not will­ing to in­vest in costly com­mer­cial prop­er­ties,” said an LDA of­fi­cial.

LDA’s flats are among sev­eral commodities that are cost­ing more af­ter roll out of GST in the state.

In­stead of the pre-GST 4.5% tax, the LDA’s home­buy­ers are now pay­ing 7.5% more un­der the new tax regime.

Keep­ing in view the fate of res­i­den­tial prop­er­ties of the LDA, it would be a tall or­der for the de­vel­op­ment author­ity to dis­pose of its com­mer­cial prop­er­ties.

LDA HAS SET A TAR­GET TO EARN ₹800 CRORE FROM SALE OF ITS COM­MER­CIAL PROP­ER­TIES

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