NEW DELHI: Those who have purchased the houses availing benefits of Pradhan Mantri Awas Yojana (PMAY) will not be able to sell properties within five years of its buying. Government will soon introduce provision of ‘lock-in’ period of five years for the houses purchased under PMAY.
Officials claimed that this is being done to avoid any misuse of the government scheme. There are apprehensions that people buying properties under the scheme may sell-off their properties at higher rates to earn undue benefits. People get subsidy in the form of loan at cheaper rates for buying properties under PMAY scheme.
A senior official of the urban affairs ministry said that in a recent meeting the issue was discussed in detail and it has been got in-principle approval from the higher authorities. Union cabinet is expected to give it a formal go-ahead soon, added the official.
The official said that the main purpose of the PMAY scheme is to provide homes to needy people. “If people buy homes at cheaper loan rates under the scheme and sell it at market price to some property dealer, then the purpose of the scheme will remain unserved. Lock-in period will avoid such situation,” added the official.
Government has introduced several initiatives to provide affordable housing particularly in Urban areas which include Credit Linked Subsidy Scheme (CLSS) which has been expanded to include the Middle-Income Group (MIG) covering two income categories between Rs 6 lakh and Rs 12 lakh (MIG-I) and between Rs 12 lakh and Rs 18 lakh (MIG-II) household income. For MIG-I, an interest subsidy of 4% for loan amounts up to Rs 9 lakh and for MIG-II, an interest subsidy of 3% for loan amounts up to Rs 12 lakh is available to eligible persons.
Government has made many changes in the scheme to include more beneficiaries. The Government has increased the carpet area in respect of MIG I category from the existing “up to 120 square metre” to “up to 160 square metre” and in respect of MIG II category from the existing “up to 150 square metre” to “up to 200 square metre”, effective from 01.01.2017.
Under the CLSS component of PMAY (Urban), a total of Rs 1,806.2 crore of interest subsidy has been credited into the home loan account of 89,154 beneficiaries from across the country during the last three years.
Officials said that the construction of houses under PMAY (U) is moving at sufficient pace and till now under, out of the estimated 1.0 crore houses to be constructed over a period of seven years from 2015 to 2022, 53.79 lakh houses have been sanctioned, 29.65 lakh houses are grounded for construction and 8.15 lakh houses have already been occupied.
Box: Lock-in period for PMAY houses
Lock- in period of five years will avoid misuse of the CLSS under PMAY.
For MIG-I, an interest subsidy of 4% for loan amounts up to Rs 9 lakh
For MIG-II, an interest subsidy of 3% for loan amounts up to Rs 12 lakh
PMAY (U) Progress
53.79 lakh houses have been sanctioned
29.65 lakh houses are grounded for construction
8.15 lakh houses have already been occupied