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Monday, June 27, 2016

Henceforth citizens have to route all their grievances and complaints through police only

Henceforth to get their grievances and complaints resolved citizens will have to route those through police. To make administration people friendly, to take cognizance of citizens complaints, to resolve these in time and to treat the citizens with respect and as well to prevent false /misleading / baseless complaints / complainants and also to redress citizens genuine complaints, the Maharashtra  Government has introduced 'One more' circular.


Looking at the language used in that circular it seems that it is applicable to all the complaints related to all the government departments. As well, as per the provisions of the circular, it appears that instead of resolving citizens complaints police will like to do citizens counseling with 'their style'. Hence it is likely that not many citizens will come forward to file complaints. Such circulars never get implemented because accountability of  it is never been fixed. Hence whether implemented or not nobody cares.

Governments all over India keep issuing numerous circulars. They are the same everywhere. Never implemented. It becomes a case of “you tell me the person and I shall tell you the circular”, thus putting into action only those circulars, which benefit the officers or their cronies. Others are thrown in the waste paper basket and none feels bad or sad about it. The circulars are cleverly drafted. If some issue is to be evaded, then the choice of words is so 'creative' as to abash even a litterateur. Perhaps these circulars would pass off as pieces of excellent literary talent.

Latest circular is not an exception to that. The language used in that circular is really nice. It is said that the circular has been introduced to make administration people friendly , to take cognizance of citizens complaints, to resolve these in time and to treat the citizens with respect . Similarly, it has come to government's notice that some elements with bad tendencies are filing false and misleading complaints. Such (false and misleading) complaints cause adverse effects on government’s  resources and on the morale of the officers and staff. Hence to prevent false /misleading / baseless complaints / complainants and also to redress citizens genuine complaints,

As per this circular responsibility of resolving all the complaints has been put on police shoulders. however, the real problem is police does not have proper infrastructure , staff, and resources to handle such complaints. already if complaints are related to other departments police are reluctant to register those. Especially in a case of complaints related to the revenue department police advice citizen to go to courts. In addition circular expects that to remain themselves updated (e.g. government resolutions, court orders etc.) assistant police commissioner / police superintendents are supposed to seminars / discussions / workshops.

The circular expects citizens to submit their complaints to assistant police commissioner / police superintendent by hand, via post (speed post/ registered post, ordinary mail), e-mail. After receiving such complaints, it is mandatory to register the complaint in the inward register same day. It is the responsibility of the assistant police commissioner/police superintendent to resolve these complaints. to resolve complaints police are advised to adopt following procedure.

1) Counseling

2) Give written order for primary inquiry to the concerned police station according to the complaint

3) Give order to police station to take action in case of factual complaint

4) An assistant police commissioner / police superintendent to make a report of action taken on complaint pointwise and give a copy to complainant

 5) It is mandatory to give action taken report on his/her complaint to the complainant within three weeks

6) The list of cases / complaints on which assistant police commissioner / police superintendent fail to give action taken report to the complainant within three weeks, the additional commissioner/ Inspector general of police will call it from concerned and submit it to the additional chief secretary (home) on the 5th day of every month. Additional chief secretary (home) will direct additional commissioner/ Inspector general of police to take action on such pending complaints.

7) If any complaint remains pending more than three months, applicant /complainant should submit such complaints to deputy secretary (pol 11,12,13) Mantralay after bringing such complaint to the notice of Additional Chief Secretary (Home) and act as per his directions.

8) Although it is the responsibility of assistant police commissioner / police superintendent to give action taken report on his/her complaint to the complainant within three weeks, the complainant should initially visit the concerned police station to get his/her written complaint resolved.

9) In a case of frequent complainants, after verifying the points in the complaint, a report only on points those were not resolved earlier should be prepared and given to the applicant. The points on which earlier action had been taken should be communicated to applicant, as well counseling of applicant should be done

10) In rural areas, most of the cases like quarrels, fights, and similar criminal cases take place because of revenue matters. Complaints in revenue, as well as criminal matter, occur assistant police commissioner / police superintendent should contact deputy collector. The assistant police commissioner / police superintendent after visiting deputy collector every 15 days / as early as possible and discuss the matter case wise. The points discussed or decided should be included in the report.

11) To counsel the complainants properly It is necessary that assistant police commissioner / police superintendent should remain themselves updated (e.g. government resolutions, court orders etc.). Hence Inspector general of police should organize seminars / discussions / workshops for assistant police commissioners / police superintendents.



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Literary geniuses of Mantralaya, a case of wasted talents



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Wednesday, June 15, 2016

Kingpin Santiago Martin being darling of all politicians 3 Lac crore rupee Maharashtra lottery scam may be toned down and killed

The Maharashtra online lottery scam runs into around three lac crore rupees , however kingpin  of  it Santiago martin being a darling of all political parties the scam is likely to be toned down and killed . No political party or its spokesperson has come forward to speak on this issue or at least demanded to nail the culprits.


Recently Anand kulkarni a  former IAS officer exposed a massive 'online lottery scam' took place eight years back and held then Finance Minister Jayant Patil  of NCP and senior IAS officer Kavita Gupta  responsible .Kulkarni unearthed this scam after he obtained a copy of CID report under RTI. After a complaint regarding tender awarded to Martin lottery agencies,  then Home Minister R R Patil  had  ordered a CID probe headed by the then Additional Director General of Police S P S Yadav into the lottery scam. Yadav had submitted its report , however, congress NCP led government didn't give heed to the report.

Though this scam runs into around three lac crores , this is not the first and the only scam of Santiago martin. He faces more than 35 lottery fraud cases in India and mostly are from Kerala. Once a small a labourer  in Myanmar after coming to India entered into lottery business - mostly frauds. As his business flourished he made many of friends mostly from political parties.

According to Indian express, Martin's  son Charles has joined BJP and his wife leena  had managed on one occasion to get on to the then prime ministerial candidate Narendra Modi' s campaign stage in Coimbatore.

Here are some stories carried by Indian Express  about such such scams




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Tuesday, June 7, 2016

Can a black magic help land grab ?

When they couldn't deter me from saving my society's interest the idiots have started  doing such silly things. They are now taking help of black magic. They throw black dolls, kumkum ,turmeric ,lemons, chillies , coconut etc. either at my door of my flat in society in Anupama  society or in from of my building.




First, someone encroached upon my societies road  when I  complained  about it. A corporator  of Pune municipal corporation threatened me in front of municipal authorities.  

Then when it came to my knowltedge that one Mukesh Gada and Arun Ranwade who were  not even remotely connected with our society had grabbed two plots from our society with fabricated and bogus  Power of Attorney. Even registration authorities registered documents without looking into the authenticity of IT. Then I lodged the complaint with IGR. IGR subsequently lodged  a police complaint. But the sub-registrar who knowingly registered this documents is safe, nothing has been done against him.

Then revenue authorities also changed the mutation entries according to the document registered with the IGR. Actually such document is not the certificate of ownership of the property. The revenue authorities are bound to take adequate precaution while changing the mutation entries. The revenue officer has to summon earlier owner and also visit the property before changing mutation entries. But who care about the rules , when corruption comes in to the picture.

I have complained about irregularities done while changing mutation entries of my society's plot to revenue authority's in February 2016. however they have not taken cognizance of it. They might be waiting for the thing to happen again , that happened while changing mutation entries fraudulently.

Since last many months I am asking for some documents of the property adjacent to our society . Municipal  authorities are not able to provide it. Actually time being I don't have any objection about that  property, but since they are using our society's internal road I just want to know the fact. But property owner being relative of highly influential political person municipal authorities are not revealing anything. Now I have filed an RTI. let us see what happens.

Our society is very old society .I don't know why but the  residents of this society are scared of anybody who is uniform, even the postman. I have purchased a flat here some 8-10 years back. Initially I was not aware of the gravity of the  situation, however when I started to get knowledge of the facts I was shocked. Each and everybody who was connected to the society or knew about its residents behavior tried to loot it. And this is not about my society only . This is happening in all parts of pune city.

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RTI Resource Person, RTI Columnist
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Saturday, June 4, 2016

Khadse exits, But his problems doesn't

Revenue Minister may have resigned but his problems haven't. The new revelation by Times of India ( ToI) confirms revenue ministers khadse's conflict of Interest and disloyalty to The government in Pune land scam case.As per ToI MIDC had never acquired the  land khadse's kin have purchased.The rival arguments have been advanced by various authorities . However in any case whether MIDC had acquired the land or not khadse's worries have increased .

Even if we admit that the piece of land had not  been acquired by the MIDC,  Ukani ( The original owner of the land) has a valid title on it and MIDC has to start acquisition proceeding afresh. This situation brings more trouble for khadse. Because in this case his role becomes more important , because he is the final authority  start or drop the acquisition proceedings.

In the case of fresh acquisition process,  the land owner will get compensation as per new land acquisition act.That amounts to around 100crore rupees . This amount will not go to original owner  Ukani ,  but will go to khadse's kins. The original owner has got only 3.75 crore rupees. Is there any business that gives 20 times returns of the amount invested. That is possible only if you are relative of  the minister in any part of India .


As per ToI , The acquisition and the compensation award papers of the plot in Bhosari purchased by revenue minister Eknath Khadse's family members are “not available“ with the revenue department. Interesting isn't it?. 

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Friday, June 3, 2016

Pune Land Scam May End Enknath Khadse's Political Career

If handled properly, the Pune land scam may put an end to revenue minister Eknath Khadse's political career .The way skeletons of this scam are tumbling out of governments cupboard , it appears that khadse has violated the oath of office and secrecy and is guilty of  disloyalty to the government and conflict of interest.


Photo courtsey www.bamulahija.blogspot.com



Violation oath of office and secrecy
All  ministers while taking the office of oath solemnly affirm allegiance to the Constitution of India , faithful and conscientious discharge  duties as a Minister and to do right to all people in accordance with the Constitution and the law without fear or favor, affection or ill-will.

They also affirm that they  will not directly or indirectly communicate or reveal to any person or persons any matter which shall be brought under their  consideration or shall become known to them ,except as may be required for the due discharge of  duties as such Minister

Photo courtsey www.behance.net


Khadse has violated both the oaths , He  was always  allegiant to his family only  and not  to  the constitution of India. He didn't discharge his duties faithfully ,he always favored  family only.  Be it chairpersonship of Mahanand dairy an apex federation of district and taluka milk unions , or be it his daughter in laws Membership to the house of parliament. The consciously saw that his family was being favored  and public money would  go to them  only.  

Khadse's ill-will was prominently established when it was surfaced that he had called a meeting  after  initial payment for the purchase of the three-acre land in Bhosari, Khadse held a meeting where he ordered that the landowner should be compensated as per the enhanced rates under the new Land Act .In this meeting, he kept all the official in dark about his direct involvement in that deal.

Khadse also violated the oath of secrecy . He not only communicated about the land in Bhosari to his family but also saw that  the original owner if at all compensated will get peanuts and the major chunk of the money will go to his family.


photo courtsey www.dnaindia.com

Disloyalty to the government
As guardian of government lands in Maharashtra,  it was  Eknath Khadse's duty to protect the interest of the Government  and not to allow anybody to grab the compensation or land under the garb of sundry excuses. This act itself shows that he was not loyal to the Government. In this case, Khadse was interested in compensation to be given as per new law in 2013 for the land lat has been acquired almost  40 years back. If the government accepts to pay compensation as per new law for the lands that are acquired long back, it will make government insolvent. because there hundred of such cases where land is acquired but nobody has either accepted compensation or even nobody was either aware of  such compensation.

Conflict of interest.
The purchase of 1.61 hectares of land in Bhosari by relatives of Khadse was a clear case of conflict of interest and trading of favours. On face  though it appears that the deal was technically legal but actually it was not legal. The land belongs to MIDC, which issued a notification in 1962 and acquired it after paying compensation to its owner, Abbas Rasulbhai Ukani. After purchasing the land from Ukani, the MIDC has leased out it in smaller plots to various industrial units for 99 years. 

In Itar Adhikar column of this land,  MIDC's name is there . ITAR ADHIKAR (Other rights)on land is an important column to be carefully looked for when identifying the extract. It may consist of several other statutory or general obligations on land such as restriction on land transfer or liabilities on the holder or encumbrances on land or other rights attached to the land. Entries in this column can completely make the transaction invalid if overlooked. But who cares when the deal is related to Revenue Ministers relatives. Khadse's involvement, in this case, was not for the help of Ukani but to grab the benefits of this deal for his own fan family . And that is nothing but a conflict of interest.

All the three things mentioned above make Revenue Minister khadse disqualified under the representation of peoples act. And if it happens , that will be the full stop to his political career.

Related  Story


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Monday, May 30, 2016

Which way Eknath Khadse is heading , Manohar Joshi or Chagan Bhujbal ?

Forget loopholes in the  process of land acquisition and other ambiguities. As guardian of government lands in Maharashtra,  it was  Ekanath Khadse's duty to protect the interest of the state and not to allow anybody to grab the land under the garb of sundry excuses. As per Indian express  days before his family members bought a three-acre plot in Bhosari near Pune from a private party, Maharashtra Revenue Minister Eknath Khadse held a meeting with officials from the Maharashtra Industrial Development Corporation (MIDC) and the revenue department at which the compensation to be given to the original owner under the state’s Land Acquisition Act was discussed. The way things took place in last few months in this case is nothing but a clear case of  corruption, underhand dealing , misuse of power and abuse of court procedure.


 Khadse had purchased three-acre land in Bhosari for a throwaway price at approximately Rs 3.75 crore from the original owner in the name of his wife Mandakini and son-in-law Girish Chaudhary. The market value of the land was Rs 40 crore. While executing the document of this deal several sections of the registration act have been violated by the Minister , his family and officials working under Minister.

The land Khadse has purchased belongs to MIDC and consists of open space and industrial plots that MIDC has leased to some Industries 40 years back. So the question of using this land for any other purpose doesn't arise at all. There may be doubt about whether or not acquisition process had been completed or not. However , in any case Khadse was not supposed to purchase this land and claim for the compensation . This is nothing but a misuse of power.


The way khadse is defending his action, in this case, there is no doubt he is going to land in trouble in next few days.The  only question is, which way he his heading former chief minister of Maharastra Manohar Joshi or former deputy chief minister Chagan Bhujbal ?

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RTI Resource Person, RTI Columnist
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Friday, May 6, 2016

Builders and bankers cheating government and buyers in Pradhan Mantri Awas Yojana

Affordable housing is the buzzword since last many years in India. Government floated many schemes under this name . IT also  provided lot of concessions , subsidies and incentives to flat buyers as well as builders. However none of those schemes could provide benefits of  schemes to real needy persons. Because there was no control or authorities to check whether beneficiaries of such schemes were genuine or fake. Pradhan Mantri Awas Yojana ( PMAY) may achieve same fate if proper care is not taken in its early stages. In PMAY also government has given subsidies to flat buyers and  builders.


Photo courtesy apherald.com

To make available homes to really genuine beneficiaries, the government has put some conditions under PMAY guidelines. There are four schemes under PMAY.  However sine last few months builders are advertising about  only credit linked subsidy  scheme (CLSS ) . Most important factor of  CLSS  is that it is applicable to 4041 statutory towns only . And to avail benefits of CLSS beneficiary must be resident  of that urban area  (Town) only. States/UTs at their discretion, may decide a cutoff date on which beneficiaries need to be resident of that urban area.

The government has put a condition of residence to make available homes to really needy persons near their workplace only. However by providing these home to non-eligible persons builders and primary lending institutes (PLI)  are blatantly flouting these conditions. This is the reason that earlier affordable housing schemes failed and couldn't provide the home to whom they were meant for.   

To avoid duplication or misuse of the scheme PLIs have to take NOCs quarterly from State/UT Governments or designated agency of State/UT Governments for the list of beneficiaries being given benefits under credit linked subsidy. State Level Nodal Agency (SLNA) identified by State/Union Territory (UT) for implementing the mission has to facilitate the identified eligible beneficiaries in getting approvals and documents etc., to avail credit linked subsidy. Housing and Urban Development Corporation (HUDCO) and National Housing Bank (NHB) have been identified as Central Nodal Agencies (CNAs) to channelize this subsidy to the lending institutions and for monitoring the progress of this scheme . However none of the CNA or SLNA are doing their job and hence builders hand in gloves with PLI's cheating innocent people.

 In Maharashtra's case Maharashtra housing and development corporation ( MHADA) is SLNA. However, MHADA hasn't prepared any list of beneficiaries . Hence, PLI's and builders are also flouting the conditions blatantly . Not only that , they  shamelessly advertise fake beneficiaries as genuine and bring other in their net

The PLI and builders are also flouting the norm that the beneficiary family should not own a pucca house (an all whether dwelling unit) either in his/her name or in the name of any member of his/her family in any part of India . This condition is there to ensure that the real homeless people should get home. However, the builders are encouraging investors  and second home buyers to take advantage of CLSS.

Actually, Beneficiary of CLSS has to apply for a housing loan directly or through the Urban Local Body (ULB)  or the local agencies identified by the State/ULBs for facilitating the applications from intended beneficiaries. And PLI 's are  supposed to  link beneficiary identification to Aadhaar, Voter Card, any other unique identification or a certificate of house ownership from Revenue Authority of Beneficiary’s native district to avoid duplication. Builders and PLI's are flouting these conditions also.

In the nutshell, builders and PLI's have started encouraging non-eligible persons to invest and buy the flats under CLSS depriving really homeless persons from having his/her dream home. If proper care is not taken in time the PMAY will met also same fate as earlier schemes. homeless people will remain homeless and builders and PLI's will steal all the benefits meant for homeless.


 Related Posts


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No law in force to regulate and control real estate business in Maharashtra

Since central government has notified some provisions of Real Estate (Regulation and Development) Act, 2016 (REA) and repealed Maharashtra Real Estate (regulation and development) Act 2012  (MREA). Some people unnecessary creating confusion that though MREA as been repealed Maharashtra Ownership of Flats act (MOFA ) is still in force. But that is not true. And as MOFA stands repealed by Government of Maharashtra , centre has repealed MREA 2012 and as all the provisions REA 2016 have not been notified , time being there is no law to regulate and control real estate business is in force.


Photo courtsey hindustantimes.com


Even if for arguments sake we accept that Maharashtra government had not repealed MOFA. As per article 254 of the constitution of India, the parliament has all the powers to enact any time any law with respect to the same matter including a law adding to, amending, varying or repealing the law so made by the Legislature of the State.Hence centre repealed MREA 2012. In case MOFA had been in force centre would have repealed it also.


Photo courtsey www.realtorindian.com


Centre didnt repeal MOFA because it was repealed with introduction MREA 2012 it self . In fact MREA 2012 was basically brought in to force because MOFA had failed  to give any relief to flat purchasers against sundry abuses, malpractices and difficulties related to the construction, sale, management and transfer of flats.

Central Government notification

Another argument to believe that MOFA was repealed was the Section 1 (3) of MREA 2012 and REA 2016 are the same. It says that the act shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint Provided that different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision. Maharashtra government had notified this section while central government has not notified it. That means with this notification itself all the provisions of MREA 2012 including repeal of MOFA had come into force. 

State Government notification


Now it seems that since at present there is no act to regulate and control real estate business in force,the  Government of Maharashtra is planing to designate somebody as RERA. However as The sections of REA2016 that the Centre has notified are related to establishment , incorporation , Composition of  The Real Estate Regulatory  Authority (RERA) , Term of office ,  Salary and allowances payable to Chairperson and Members only .And as it has not notified section related  Obligations, Functions and duties of promoters , Rights and duties of flat purchasers, Penalties for contravention of any section. Even if Government of Maharashtra  designate somebody as RERA it will not be of any use in absence of any regulatory or penalty powers .

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Saturday, April 30, 2016

Hurdles in appointment of Real Estate Regulatory Authority in Maharashtra Removed

Any time after 1st May 2016 the government of Maharashtra may establish Real Restate Regulatory Authority ( RERA )or delegate its power to somebody. On account of present controversy over Maple Groups misleading advertisements under Pradhanmantri awas Yojana ( PMAY) , FIR’s and further drama, it was alleged that presence of RERA would have made significant difference and timely intervention of RERA would have saved several peoples’ hard earned money. However, now with notification dated 27th April 2016 hurdles in appointment of RERA or delegating it’s powers to somebody have been removed .


Photo courtsey www.thehindubusinessline.com


The Ministry of Housing and Urban Poverty Alleviation (MHUPA) of government of India has brought in to force some provisions of Real Estate ( Regulatortion nad Development )  Act 2016
( REA )   as well it has repealed The Maharashtra Housing (Regulation and Development) Act, 2012. The MHUPA has announced this with a notification dated 27 April 2016.With this notification MHUPA has brought some sections of the Real Estate Regulatory Act 2016   into force.


Section 81 read with Section 82 ( C ) Real Estate Regulatory Act empowers appropriate Government to delegate powers of RERA  to any authority  if circumstances exist which render it necessary in the public interest so to do. The MHUPA has brought in to force section 81 to 92 including following provisions of REA  from 1 may 2016.

Section 2 – Definitions, This section deals with the all the terms used in real estate sector

Section 20 to 39 – These sections deal with the Establishment and incorporation of Real Estate Regulatory Authority, Composition of Authority. Qualifications of Chairperson and Members of Authority. Term of office of Chairperson and Members. Salary and allowances payable to Chairperson and Members. Administrative powers of Chairperson. Removal of Chairperson and Members from office in certain circumstances. Restrictions on Chairperson or Members on employment after cessation of office

Section 41 to 58 – These sections deal with the Establishment of Central Advisory Council. Functions of Central Advisory Council. Establishment of Real Estate Appellate Tribunal.

Section 71 to 78 – These sections deal with Power to adjudicate. Factors to be taken into account by the adjudicating officer.

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CREDAI should clarify on 1 BHK flat for rupees 5 lakh



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RTI Resource Person, RTI Columnist
Phone – 9923299199
Email – kvijay14@gmail.com
Website – http://surajya.org              

Saturday, April 23, 2016

CREDAI should clarify on 1 BHK flat for rupees 5 lakh

Maple Shelters who recently offered  1 BHK flat only for rupees 5 lakh under Pradhan Mantra Awas Yojana (PMAY). But recently Maple has sold 30 square meter flats at whopping cost of around 19 lakhs . There was a lot of chaos after advertisment regarding this appeared in media. Fact is, it is almost impossible to provide 1 BHK flat in 5 Lakh rupees in or around pune . However Credai pune metro has made rival argument supporting Maple shelters.Hence the responsibility to clarify on , how come these flats worth around 19 lakhs rupees will be made available in just 5 lakh rupees is on credai only

No doubt Credai has full right to support its members. But the way it presented its stand on claims made by Maple shelters that may not be acceptable to all. Because aims of credai are to perpetuate self-imposed and mandatory for all the member an ethical code of conduct. But it seems that credai has devited from it.

Photo courtsey affordablehousinginstitute.org


Credai has claimed that , it is possible for a developer to deliver homes at  a cost of Rs. 7.2 lakhs as advertised by the Maple shelters. Credai also confirmed that at the cost of Rs. 2200 psf, in the fringe areas where land costs are low, homes are possible to be constructed and delivered. With the subsidy of Rs. 2.2 lakhs under the PMAY CLSS scheme, it is very possible to deliver homes to the affordable segment at a cost of Rs. 5 lakhs as envisaged by the Government.

Photo  courtsey .democraticunderground.com


Now let us have a look at two sale deeds registered in March 2016. Both sale deed are of same maple shelters who is claiming to provide 1 BHK flat in just 5  lakhs. One is of what they call moshi annex of Kharabwadi and other is of Nanekarwadi.

At kharabwadi they have  sold a flat of area 29.17 square metres ( exactly the carpet area equivalent to scheme under PMAY) at rupees 18,38,942 /- ( Rupees eighteen lakh thirty eight thousand nine hudred and fourty two ) that comes to around 6,129 rupees per square foot. Even as per ready reckoner rate comes to around 4,350/-



Other is at Nanekarwadi , they have sold 32.24 sq.mt flat at cost of 19,58,165 ( nineteen lakh fifty eight thousand one hundred and sixty five ) , that comes  to around Rs  6116/-( six thousand one hundred and nineteen rupees) even as per ready reckoner this rate comes to Rs 4687/- ( four thousand six hundred and eight seven rupees)




Now its up to Credai to clarify that how come these around 30 sq.mt flats can be sold at the cost of 5 lakh rupees. Even after subsidy under PMAY schemes the rates of these flats come to around 16, 18,942 and 17,38,165 respectively. Even as per ready reckoner rates come to 14 lakh and 15 lakh respectively.

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Wednesday, April 20, 2016

Officials booked , What went wrong with Maple Groups 1 BHK flats for Rs five lakh, as a part of PMAY ?

Finally case has been filed against maple group for the firm’s “fraudulent” advertising of one-bedroom flats for Rs five lakh each as part of Pradhan Mantri Awas Yojna (PMAY).The group was collecting non refundable Rs. 1145/- as a processing fee from the perspective buyer and expecting to collect around one lakh such forms. Police sub-inspector Narayan Palampalle, attached to the Shivajinagar police station, lodged the first information report (FIR). Police have booked Sachin Ashok Agarwal, Naveen Ashok Agarwal and sales manager Priyanka Agarwal and other officials of the Maple Group under section 420, 417, 120 (b), 34 of the Indian Penal Code (IPC)

photo courtsey http://www.trafficchallan.co.in/

Actually the PMAY  is to  be implemented through four verticals giving option to beneficiaries, Urban Local Body’s (ULB) and State Governments. These four verticals are "In situ" Slum Redevelopment, Affordable Housing through Credit Linked Subsidy, Affordable Housing in Partnership and Subsidy for beneficiary-led individual house construction. However it was not mentioned in the advertisement for which group they were inviting applications. It appears from further developments that they were talking of Affordable Housing through Credit Linked Subsidy (CLS)

Photo courtsey indianrealestatefordummies.in

Now forget about the one-bedroom flats for Rs five lakh scheme that is nothing but jugglery of words. We will talk on it in next post. But what went wrong with Maple group’s scheme is collecting crores of rupees without any authority from perspective flat buyers. As per PMAY guidelines In lieu of the processing fee for housing loan for the borrower under the scheme, Primary lending Institutes (PLI) will be given a lump sum amount of Rs. 1000 per sanctioned application. PLIs will not take any processing charge from the beneficiary. That means collecting processing charges from flat buyers was not allowed.

As well beneficiary was supposed to apply for a housing loan directly or through the ULB or the local agencies identified by the State/ULBs for facilitating the applications from intended beneficiaries. Moreover In order to incentivize the designated staff of ULBs or NGOs a sum of Rs.250 per sanctioned application would be paid out of CLS Scheme funds payable through State Governments.

In short collecting any amount from flat buyers to which government was funding was absolutely wrong , illegal and misuse of government’s scheme. 

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