Rajasthan Housing Board may soon be dissolved

JAIPUR: Known to be a major corruption hub, the Rajasthan Housing Board is likely to be dissolved.

Chief minister Vasundhara Raje on Friday observed at a review meeting of the UDH (Urban Development and Housing) department that the Rajasthan Housing Board (RHB) should be dissolved. The RHB was established nearly 46 years ago to cater to the housing needs of the residents, in particular the lower middle class.

Upset over corruption in the board and the fact that RHB houses now being available at market rates and not at lower prices, Raje directed to complete all the ongoing RHB projects and transfer the land to urban improvement trust (UIT), corporation or councils. She also said that the existing staff be transfered to urban local bodies.

A source in the department said, "The chief minister sought an explanation over the initiation work of Dastkaar Yojana and other new housing schemes in the meeting."

"Dejected with the idea of constructing houses in far-flung areas, she said the existence of the board was no longer serving its purpose,''the source added.

Established in 1970, the RHB aimed at providing houses on no profit-no loss basis. However, in the recent past, several cases of corruption surfaced as officials allegedly increased the prices in connivance with the contactors. The matter was also reported to the chief minister in the pervious review meetings.

Source in UDH department said, "The unprecedented rise in the cost of group housing schemes of RHB was burning a hole in consumers' pockets. The allottees of RHB schemes were forced to pay double the amount in many schemes to take possession. This was happening as contactors were deliberately delaying the project."

Reports suggested a huge difference in prices from what was quoted at the time of booking and at the time of construction. As per records, in the past two years, the construction cost has been raised by more than 40%. For instance, in 2015 in Bhilwara, the RHB had announced flats at Rs 16 lakh each for middle income group (MIG-B) but the cost of constructed ones went up to Rs 42 lakh, which surprised the purchasers. Many allottees also approached the court in this regard.

Similarly, there was a price difference of Rs 16 lakh for Bhagu apartment (Mansarovar). At the time of booking the RHB had quoted Rs 38 lakh and when it was constructed, the allottees were asked to pay Rs 54 lakh. "The contractors, in connivance with officials, were using the material, which is not mentioned in the list and this elevates the cost."

Meanwhile, the RHB unions are gearing up for protest. "The chief minister's intention is to give the RHB land on public-private partnership (PPP) model at cheaper rates to develop various projects including international convention centre. Our union is continuously opposing this move. This is the reason such direction has been taken." O P Punia, RHB union president.

The union president further claimed the RHB is the only organisation in the country to meet the target of constructing houses for economically weaker sections and lower income group. The government will fail to achieve the target of 'Housing For All' plan, if the board is dissolved, he said.

SOURCE: ETRealty.com