We Have Been Defrauded’: CIDCO Home Applicants Protest High Prices, Poor Locations

CIDCO Home Aspirants Protest Exorbitant Rates, Accuse Misrepresentation in Housing Scheme

Navi Mumbai: Potential home buyers belonging to the Economically Weaker Sections (EWS) and Lower Income Group (LIG) categories have organized protests against the City and Industrial Development Corporation (CIDCO), accusing biased pricing and misrepresentation in its mass housing scheme.

Buyers who were given homes under CIDCO’s My Preferred CIDCO Mass Housing Scheme say that the ultimate cost of the flats is significantly higher than initially anticipated. Moreover, they say that the sizes of the actual homes are smaller than promised. These issues have set off a tide of opposition, including a signature campaign, legal advice, and an intended human chain protest in Vashi on Tuesday.

High Prices and Smaller Home Sizes Raise Eyebrows

CIDCO had introduced the scheme in October last year under the Pradhan Mantri Awas Yojana (PMAY) with a promise of affordable houses for economically weaker sections. The scheme promised 26,000 houses in Vashi, Bamandongari, Kharkopar, Kharghar, Taloja, Mansarovar, Khandeshwar, Panvel, and Kalamboli. The houses were classified into two categories:

• EWS Category: Income of up to ₹6 lakh per annum
• LIG Category: Income above ₹6 lakh per annum

But in January, CIDCO declared the rates for these apartments, and the applicants were shocked. The prices of EWS flats varied between ₹25 lakh and ₹48 lakh, whereas LIG flats varied from ₹34 lakh to ₹97 lakh. The additional fees like floor rise charges, registration, and stamp duty were not included in these prices.

Applicants were also incensed to find that the sizes of homes were lower than initially indicated. The letter of intent had indicated a 27.12 sqm (290 sqft) size, as opposed to the earlier indicated 29 sqm (322 sqft). CIDCO explained this by claiming that the current figure now only indicated the carpet area, minus the balconies, in line with the Real Estate (Regulation and Development) Act (RERA).

Buyers Feel Cheated, Demand Fair Pricing

Dada Padalkar, who is one of the applicants, was frustrated and said, “The poor people’s dream homes have become rich people’s homes. We can afford ₹40-50 lakh homes with loans, but how can auto drivers, hawkers, mathadi workers, and maids afford homes costing more than ₹85 lakh?”

Vijay Mane, one of the homebuyers, alleged they had been deceived. “For a year and half, we put in all documents, paid cash, and have taken loans for registration and booking fees. And now we discover we have been cheated on the price, space, and site.”

Most of the buyers also complained about the areas where the flats were located, stating that they were in unsuitable places. “The houses are either in dirty industrial zones like Taloja or next to a crematorium in Kharghar,” Mane said. “CIDCO can simply provide us with land, and we will construct our own houses for ₹25 lakh.”

Low Response Despite Extended Deadlines

CIDCO’s pricing policy found few takers. Of 1.5 lakh applications, merely 55,000 paid the registration amount. Even with four extensions of the deadline, just 21,399 applicants paid the booking amount. It is learnt that more than 2,000 buyers have backed out of the scheme ever since the lottery draw was conducted.

MNS Enters the Fray, Threatens Litigation

The Maharashtra Navnirman Sena (MNS) has thrown its weight behind the protesting buyers. Gajanan Kale, MNS’s Navi Mumbai chief, accused CIDCO of acting like a private developer and ignoring the purpose of PMAY housing. “CIDCO’s prices are even higher than those set by the Maharashtra Housing and Area Development Authority (MHADA),” he said.

Kale also complained that his LIG eligibility had been breached by CIDCO due to central government norms. “We will take this matter up with MNS chief Raj Thackeray and file a Public Interest Litigation (PIL) if necessary. If our demands are not fulfilled, we will go to the streets, as we have already done successfully against CIDCO.”

CIDCO Defends Pricing Strategy

CIDCO Joint Managing Director Shantanu Goel justified the prices, saying that affordable housing is generally found outside city limits. “If you want cheaper houses, you have to go out of the city. But we are providing flats in the vicinity of transport points like Panvel bus stand and Mansarovar railway station,” he said.

He also said that customers can use bank and NBFC loans to finance their purchases. “The EWS segment has dreams of living in the city, and they will avail of loans based on their affordability and utilize their savings,” he said.

Next Steps: Protest and Legal Action

With agitation gathering momentum, purchasers intend to organize a human chain in Vashi on Tuesday. They are negotiating with the state government as well and mulling legal recourse to oppose CIDCO’s rates and flat size policy.

CIDCO’s housing project controversy focuses on the intensifying battle of affordable housing in city centers by low-income purchasers. As protest actions intensify, everyone’s eye will be on CIDCO as well as on the government regarding how it treats the rising agitation.