The Times of India             12.07.2013 

LDA to increase price of River View Apartments, to impact 1917 allottees

LUCKNOW: LDA is mulling to raise prices of its River View Phase II Apartments up to 5 percent. Around 1917 allottees would be impacted due to this decision who would have to pay about Rs 1 to 2.5 lakh to the LDA. The project is located in Gomtinagar extension.

LDA failed to deliver the project in time and has decided to raise prices of flats just before the registry. The project took off in 2010. This projects included construction of several blocks like Rohini, Betwa, Kaveri, Alaknanda, Shipra, Rapti and Sutluj which had 1928 flats in total. Out of this, 1917 flats were allotted by LDA in different phases.

LDA had promised to deliver the flats to allottees in next two year by the end of 2012 but it failed to do so. Now, the authority is working on its costing and has found that the rates have gone up by almost 5 percent and hence the increase.

The flats' registries are due in this month end. With the 5 percent increase , the two bedroom flat owner would have to pay approximately Rs 93,250 more.

If the decision is implemented, LDA would get Rs 25 crore more from all the 1917 allottees taken together.

While LDA has decided to increase the flat rate citing increased costing reasons, the entire financial burden has come on to the allottees who have paid the total amount to LDA two years back only. LDA has conveniently earned interest on this invested money and build the flats.

The allottees are annoyed with this decision as it is LDA's fault to ahve failed ino delivering the project to allottees in time and is now passing on the increased cost burden on to the people.