Cabinet approval has been granted to cancel the housing concession provided to Members of Parliament under the “Viyathpura Housing Scheme” with immediate effect.
According to the government, several MPs lost their residences due to the unrest in the country on May 9, 2022, and as a temporary measure, the Urban Development Authority was authorized during the Cabinet meeting on July 4, 2022, to provide 101 housing units from the Viyathpura complex on a rental basis for one year.
Subsequently, those MPs requested the opportunity to purchase the units under a concessionary scheme.
Accordingly, housing units that were originally priced between Rs. 15.5 million and Rs. 22 million for the general public were offered to MPs at reduced rates of Rs. 13.34 million minimum and Rs. 18.21 million maximum.
As per the Cabinet approval on July 15, 2024, MPs were to pay 25% upfront, with the remaining amount payable over 15 years at an annual interest rate of 10%.
The government further stated that 29 former MPs had deposited the initial 25% by December 31, 2024.
However, this concessionary scheme resulted in a financial loss of approximately Rs. 92.126 million to the Urban Development Authority, which could not be recovered through the incurred costs.
As such, the Cabinet has approved the immediate cancellation of the previously sanctioned concessionary scheme, while allowing the 29 MPs to purchase the housing units under the same pricing and procedures available to the general public.
The proposal in this regard was submitted by the Minister of Urban Development, Construction, and Housing. (Newswire)