Financial crunch forces Lucknow development body to put projects on hold – ET RealEstate

LUCKNOW: In the throes of a revenue loss of Rs 137 crore from March 25 to August 31, the Lucknow Development Authority (LDA) has decided to put brakes on its several development projects in the city.

LDA chief finance controller Rajiv Kumar Singh said the construction of housing projects in Devpur Para, Sultanpur Road and Aishbagh have been put on ice since March due to financial crisis.

Similarly, he said, work of multi-level parking in Transport Nagar and maintenance of 110 parks under LDA jurisdiction have been put on hold. However, Singh said all these projects would be resumed as soon as LDA’s financial health improves, for which several measures were being taken.

As per LDA records, development authority suffered a loss of Rs 41 crore during lockdown from March 25 to June 7.

After the process of gradual unlocking began, the development authority hoped to revive sources of incomes like registration of its housing and commercial properties, parking lots, map layout approval, rent from housing and commercial properties, ticketing facilities in parks and monetary penalty imposed from construction violators.

However, LDA managed to collect only Rs 12 crore against its target of Rs 27 crore in June.

In July, LDA generation was Rs 48 crore against the target of Rs 57 crore and in August Rs 36 crore against Rs 128 crore. To make up for the loss, LDA introduced a one-time settlement (OTS) scheme in July for 26,000 defaulters, who had not paid instalments of their housing and commercial units for the past several years.

The move to give 10% concession to defaulters worked and LDA managed to recover Rs 32 crore in the past 45 days. “OTS scheme has yielded some results and hope that scrapping the rule of income certificate for the purchase of commercial properties will attract more buyers,” said Singh.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *