The Ministry of Urban Development (MoUD) has formed a commission to investigate cases of scam in the housing sector and look into problems faced by those living in housing and apartment units.

The three-member commission led by former senior government official, Kumar Lohani, will submit a detailed report, along with policy recommendations, within the next three months.

The commission will basically look into cases of homebuyers, who have made payments to book housing or apartment units but are yet to get those units. The commission will also look into various problems, such as those related to inefficiency of management at existing housing and condominium projects.

“In other words, the commission will look into all the problems that have cropped up in the housing sector and give recommendations on how to solve or address them,” Spokesperson at the Ministry of Urban Development Suresh Prakash Acharya told The Himalayan Times, adding that the ministry has given the commission the full authority to conduct investigation in all sorts of problems faced by the housing sector.

Many who have bought housing and apartment units have long been complaining that they have not been able to enjoy many services and amenities despite paying huge administrative fees every month.

On the other hand, many homebuyers are in a lurch as they have not received their housing or apartment units despite paying millions of rupees at the time of booking. This problem has turned many a dreams of owning housing or apartment units into nightmares, while raising questions on the government’s ability to control such malpractices.

Earlier, a commission formed to probe troubled savings and credit cooperatives had received 484 complaints from homebuyers who were duped by housing developers, who had failed to hand over housing and apartment units to clients within the pledged time due to the delay in construction works.

The homebuyers had claimed they stand to lose at least Rs 1.40 billion due to the carelessness of housing developers.

Many housing and apartment projects that have failed to complete construction works on time belong to promoters of savings and credit

cooperatives, which ran into trouble due to haphazard lending practices and exposure to the real estate market that later crashed.

For instance, claims worth Rs 1.36 billion have been filed against Oriental Builders and Developers and companies affiliated to it, which is owned by promoters of Oriental Cooperative.

Tara Devi Dhakal of Damak, Jhapa, had told the commission that she was yet to receive apartments from Oriental Builders and Developers despite depositing Rs 190 million.

The company is currently building over half a dozen housing and apartment projects, including Oriental Colony, Chakrapath Heights at Basundhara, Dhumbarahi Apartments Phase 2, Bagmati Apartment at Sankhamul, Eastern Apartment at Kausaltar, Vegas City at Balkumari, Imperial Apartment at Naxal and Sanepa Height Apartment, among others.

Similar is the case with projects handled by promoters of financially-troubled Guna Multipurpose Cooperative, which has ties to Guna Developers.

Guna Developers is currently building Guna Colony, Reliable Colony, LP Apartment and GN Apartment, among others. “People who booked units at these projects are worried about losing Rs 19.90 million that they paid in advance as developers have not transferred the ownership yet,” Karki said.

People who have booked housing units via Sahayata Cooperative, Society Savings and Credit Cooperative and Hero Bahuuddeshiya Savings and Credit Cooperative are also expressing similar worries as at least Rs 19.40 million of their hard-earned savings is at risk due to uncertainty in completion of projects.

source:the himalayan times,11 june 2014