HMDA to auction Rajiv Swagruha’s flats to raise Rs 2000 crore

HYDERABAD: To generate revenue, the Hyderabad Metropolitan Development Authority (HMDA) has decided to take over the Rajiv Swagruha Corporation Limited from the housing board and sell the flats. It will auction 28 blocks of the Rajiv Swagruha complex in Bandlaguda as a pilot project. Based on the outcome, it plans to sell the remaining flats, which number around 10,000. Builders can complete minor repairs and resell the flats to buyers.

The housing board built approximately 12,000 flats in Andhra Pradesh at a cost of Rs 1747 crore. The state government, on the other hand, did not give over the flats to the recipients. Several houses were damaged as a result of this. As many as 76,000 people applied for the houses but did not get them because the Swagruha flats were more expensive than the market price. The state government borrowed Rs 1250 crore to build the flats but was unable to pay the interest. In light of this, the government mortgaged the Bandlaguda flats.

HMDA hopes to raise Rs 2000 crore by auctioning the flats. Arvind Kumar, Special Chief Secretary, Municipal Administration and Urban Development Department, Government of Andhra Pradesh, stated at a recent meeting that the HMDA would take over the project from the housing corporation and conduct the auction. He stated that after successfully bidding for the blocks, builders will be able to complete minor repairs and resell the flats to buyers. The details are being ironed out.