The desire of the Rajiv Swagruha housing scheme was to provide quality houses at a modest price to the middle-income group.
These houses would be bestowed at 25 per cent less cost than the prevailing market rate summoned by state govt.
The corporation had rented from banks by bankroll 752 acre of govt lands, which are mostly in Greater Hyderabad.
G. Nageshwar Rao, director, state Rajiv Swagruha Corporation Ltd said “Over Rs 1,000 crore was borrowed from five nationalised banks. The corporation has been paying over Rs 200 crore each month for this. These costs have been added to the price of the flats and they are not selling.”
The prices of the housing units are still reasonable when compared with market rates said officials.
He added, “Most private constructors levy hidden charges. The prices we quote are inclusive of VAT, service tax, piped gas connections, 24-hour water supply, generator back-up and the projects are developed in gated communities.”
MR Rao has disclosed that the housing units would be sold at a cost-to-cost rate to state government employees. However, the advantage seems to be going to TS govt employees.
Currently, the per sq. ft price of the Rajiv Swagruha units is around Rs 2,200 but Non-Gazetted Officers’ Association has demanded govt for Rs 1,500 per sq. ft.
Official source said “Allam Narayan, chairman of Press Academy of Telangana State, has approached the government seeking flats for journalists at a cost of Rs 1,000 per sq. Ft.”