LDA hikes property prices by 5-7%

LUCKNOW: The Lucknow Development Authority (LDA) has decided to increase the cost of its properties by 5 to 7% because of a steep hike in the cost of construction material.

LUCKNOW: Over 5,000 flat owners in various group housing schemes of Lucknow Development Authority (LDA) will have to shell out an amount between R50,000 to R2.50 lakh extra to get their property registered, thanks to a hike in prices.

The development agency has decided to increase the cost of its properties by 5 to 7% because of a steep hike in the cost of construction material, according to a senior LDA official. He said the department was in the process of preparing the final cost sheet of these dwelling units and their registration procedure was expected to commence within a fortnight.

The move comes as a double whammy for property buyers. “We will already be paying more stamp duty as the value of the property would be assessed on the DM circle rates enhanced recently. And now comes the news from the LDA that we should deposit additional money against our flat,” said Aditi Chaturvedi, who has booked a flat in River View Apartment Scheme in Gomti Nagar.

She is not the lone protester. The chorus is expected to get louder once the news spreads.

Ajay Tiwari, a bank official, said, “We were promised possession of our flats in two years, in 2012. The LDA should be fined for not meeting the deadline.”

An LDA engineer in-charge of one of these housing projects, however, pointed out that a clause in the registration agreement clearly stated that the actual price of a property may vary at the time of registry. “This clause further adds that we may increase the cost by 10% due to circumstances not under our control,” he asserted.

The agreement leaves no scope for the allottees but to grin and pay up.

The allottees were not losers in any way, as the value of these flats had shot up manifold due to the recent boom in the real estate sector, the LDA engineer in-charge added.