Ghaziabad lowers prices of flats in its Chandrashila scheme by ₹9-11 lakh

The move is aimed at countering the slump in real estate sector; new prices will apply to allottees of previous as well as new offering.

To battle the real estate slump and remain competitive in the real estate market, the Ghaziabad development authority (GDA) has reduced prices of flats it is offering under its newly constructed Chandrashila housing scheme. According to officials, the prices of the flats have been lowered to the tune of ₹9 lakh to ₹11 lakh per flat. Officials said a proposal in this regard will also be sent to the GDA board for approval.

The Chandrashila Housing Scheme has multi-storeyed flats and has been constructed near Lohiya Nagar, barely a kilometre away from the Old Bus Stand, Ghaziabad. (Sakib Ali / HT Photo)

The Chandrashila Housing Scheme has multi-storeyed flats and has been constructed near Lohiya Nagar, barely a kilometre away from the Old Bus Stand. The scheme comprises 120 flats and was launched in 2015. According to officials, this is the only scheme of the GDA which was delayed, and homebuyers made complaints to the Uttar Pradesh real estate regulatory authority (Rera) and the GDA had to refund payment of two allottees.

“We have reduced the prices of the flats offered under the Chandrashila scheme by lowering various charges. The flats were delayed as there were issues with the contractor hired initially, who delayed the scheme. Flats are now complete and the scheme will be launched on September 6. Possession will also be given soon. The prices of flats have been brought down by lowering the overhead charges and the contingency charges,” said Kanchan Verma, authority’s vice chairperson.

Officials said during the first launch of the scheme in 2015, 66 flats were offered (no possession given so far) while the second launch of the scheme, in which 54 flats will be offered, will be held on September 6.

According to officials of the property department, the lowered cost will be applicable to all the flats in the scheme, whether offered in the first launch of the second. “There were delays in the scheme as the previous contractor entered into litigation and the authority had to rope in another contractor for completing construction work. The cost has been reduced by lowering the additional charges from 15% down to 3%. Further, during the examination of documents, we found that the interest for two years of delay was also levied to the cost of flats. In fact, this cost is to be recovered from the first contractor and not the allottees,” said AR Rahi, authority’s property in-charge.

The authority has now fixed new rates for the flats – one category of 2-BHK flats which was earlier priced at ₹67 lakh are now being offered at ₹55.93 lakh each, while the other category of 2-BHK flats which was earlier priced at ₹52.44 lakh is now offered at ₹43.14 lakh each. Similarly, another category of 2-BHK flats earlier offered at a price of ₹54.25 lakh is now being offered at a rate of ₹44.73 lakh each.

Authority officials said similar provisions can be made in respect of other housing scheme such as the ones at Indraprastha and Koyal Enclave if a government order to that effect is received.