by Tariq Butt
The Federal Government Employees Housing Foundation (FGEHF) has increased the cost of 1,000 under-construction apartments by 10-15% and asked their allottees, all government servants of grade 1 to 16, to make the payments accordingly.
“This has come as a bombshell on us because we were already much tied up due to burgeoning inflation,” one of the allottees told ‘The News’.
The allottees were to pay 40 % of the cost of flat in instalments while 60% of it was to be arranged through loan from a bank or financial institution. However, they say the bank has refused to grant loan while the FGEHF, which has committed to be facilitator in completion of formalities and documentation of loaning facility, is not helping. The construction of apartments for low paid federal government employees in G-11/3-4 under denomination of Phase-V housing scheme was launched in April 2005.
According to the letter received by the allottees, a copy of which is available with ‘The News,’ the ‘C’ category type flat, having covered area of 1100 sq.ft., which previously has the price of Rs1.80 million, as contained in the brochure, will now cost Rs2.650 million. Similarly, ‘D’ type apartment, having covered area of 900 sq.ft., that was earlier valued at Rs1.45 million will now cost Rs2.170 million. Likewise, the ‘E’ type, having a covered area of 700 sq.ft., previously costing Rs1.20 million, is now valued at Rs1.680 million.
The letter states that the increase has been introduced to cover the deficit of Rs640 million as the cost went up to Rs2,680 million from Rs2,040 million.
The matter was placed before the Executive Committee (Board of Directors) in its 101st meeting held in August this year which revised the price.
Originally, the price of apartment inclusive cost of land and construction was to be paid by the respective allottee in seven quarterly instalments. The direct burden on the allottee was to the extent of 40 % of the cost. For balance 60 % loan facility was to be extended through bank or financial institution. However, the loan was to be arranged by individual allottee on his own within three months of issuance of allotment letter and he or she was responsible for payment of financial charges and payment of loan direct to the loaning agency.
Levy of 2% surcharge will be charged on late deposit with effect from September 1 this year. The Board of Directors approved cancellation of allotments of those apartments where due amounts are not being received.
http://www.thenews.com.pk/daily_detail.asp?id=146670 
