Battle of the dues

Source:The Hindu,K.A. MARTIN, May 8,2010

A view of Housing Board flats at Thrikkakara in Kerala.   The Kerala Government wants the State Housing Board to repay the deposits it collected from local bodies for the Maitri Housing Scheme    
The Maitri Housing Scheme has once again emerged the nub of differences between the State Government and the Kerala State Housing Board, with reports that the Local Self-Government Department is insisting that the board pay back the local bodies the money it received from them through the Annuity Deposit Scheme during 1996-98.

The deposit scheme under the Maitri Housing Scheme aimed at providing housing to poor people with the money provided as a one-time deposit by panchayats, municipalities and Corporations.

Sources in the board say it has received over 4.5 lakh applications for various housing programmes.
However, it has been unable to settle a portion of them because of a funds crunch.

M. Rahmathulla, Chairman of the Housing Board, told The Hindu PropertyPlus that it was a fact that it owed around Rs.20 crore to the various local bodies in the State.

However, he said the previous United Democratic Front government, led by Chief Minister A. K. Antony, had agreed to pay these dues to the local bodies provided the board paid back the government the dues when its financial situation improved. However, no order was passed.

Mr. Rahamathulla said there was no conflict between the government and the board, and the matter was under discussion.

For instance, the government had not reimbursed around Rs.130 crore to the board as the interest component in the Maitri Housing Scheme.

Under the housing scheme, the beneficiaries were to pay only 5 per cent interest whereas the loan carried an interest of 13.5 per cent.

Revenue deficit
Sources in the board say that its financial health is bad and that government needs to do something urgent to help it out. It has not been able to meet its commitment on the MN Housing Scheme.

Under these circumstances, the revenue deficit for the board has been growing every year. Things have been made harder by the government's refusal to provide guarantee for loans it can take from the Housing and Urban Development Corporation.

Sources say that while the board's monthly income generation is Rs.4 crore, its requirement is around double that amount. Under these circumstances, it is urgent that the government offers help.