Abnormal increase of prices of Flats

Location/place: Hyderabad

Name of company/service: CGEWHO

The CGEWHO(CENTRAL GOVT EMPLOYEES WELFARE HOUSING ORGANISATION)had proposed to construct 380 flats for central and state government employees at Hyderabad by dividing them into four categories Type A (20 flats), Type B (108), Type C (108) and Type D (144).
In April 2007, the erstwhile Hyderabad Urban Development Authority (Huda) had approved the plan for basement+stilt+9 floors buildings in case of B, C and D category blocks and stilt+four floors for type-A flats.
“The project was supposed to be completed within 30 months, but even after three years works are still on. Civil works began only in early 2008. Officials recently fixed December 2010 as deadline.
When the project was announced, the prices of flats were fixed as Rs 6.82 lakh for type A, Rs 10.45 lakh for B, Rs 13.75 lakh for C and Rs 16.50 lakh for type D flats.
After the second revision, the prices went up to Rs 8.63 lakh (A), Rs 15.02 lakh (B), Rs 19.10 lakh (C) and Rs 22.54 lakh (D). “Some allottees are retired employees of central and state government and have paid their retirement benefits to the housing project.
Officials said the project could not be started as per the schedule as there was an injunction from the district court on a petition by the owner of a neighbouring plot. The stay was vacated by the High Court and works started subsequently in January 2008.
“If the project had started as per the original plan, the construction should have been completed by December 2009.
The Kendriya Vihar housing project being taken up by the Central Government Employees Welfare Housing Organisation (CGEWHO) at Hydershakote near Golconda is moving at a snail’s pace. Though the project was started five years ago, till now only 50 per cent works have been completed for some blocks.
With undue delay in completion of the project, the allottees, for no fault of theirs, have to cough up nearly 40 per cent extra for their flats. The CGEWHO had revised the prices of flats during the last three years, with cost escalation between 40 per cent than the original unit price.
Latest, the third revision, the prices went up to Rs 9.93 lakh (A), Rs 17.33 lakh (B), Rs 22.04 lakh (C) and Rs 25.98 lakh (D). as per CGEWHO letter dated 01-01-2013.
Since the delay is due to CGEWHO; CGEWHO should penalize the contractors or their own organization. This CGEWHO is no profit and no loss organization. Is the allottee responsible for this delay. Due to this abnormal delay the allottee is put under pressure to pay more than the initial prices/escalated prices.

For the revised prices of the flats, how the allottee is responsible for this. CGEWHO should be penalized for delay construction @ per day to till date. The escalated cost should be borne by the CGEWHO because of their mistakes.

Please kindly make justice.


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