TS Govt Appoints Panel To Dispose Of All Assets Of Swagruha Corporation By Open Auction

Hyderabad, March 10 (Maxim News): The State government issued GO constituting high-power committee of secretaries comprising Chitra Ramchandran, IAS, Special Chief Secretary to Govt. (FAC), Housing Department, K. Ramakrishna Rao, IAS, Principal Secretary to Govt., Finance Department and Aravind Kumar, IAS, Principal Secretary to Govt., Municipal Administration and Urban Development Department to work out modalities for disposal of all assets of Telangana Rajiv Swagruha Corporation Limited by conducting an open auction on an “as is where is” basis.

The previous government, in the year 2007, considering the need of providing affordable housing to the Urban Middle Class in the State had announced a Housing Program by name ‘Rajiv Swagruha’ and incorporated a Government Company in the name of Andhra Pradesh Rajiv Swagruha Corporation Limited (APRSCL) under the Companies Act, 1956, to implement the housing scheme. Accordingly, the new Housing programme ‘Rajiv Swagruha’ was launched in all Municipalities and Municipal Corporations in the State. The Corporation had ambitiously planned for 32 projects, consisting of about 46,565 units to construct about 4 crore sft., with an estimated cost of about Rs.8,504 crores.

Twenty Housing projects with a project cost of Rs 6301.01 crore were grounded in between 2008 to 2011 by mobilizing bank loans. In the year 2011, Rajiv Swagruha faced severe financial crisis and all the operations came to stand still. A bailout package was recommended by group of Ministers and a High Power Committee headed by Chief Secretary. A decision was taken to stop the works in “as is where is condition” and agreements with the contractors were foreclosed. By that time, an amount of Rs 1621.26 crores had been spent on the projects, which were all shut down. Therefore, all the projects remained incomplete and unfit for occupation in its current stage.

On formation of the Telangana State, the Rajiv Swagruha Corporation cleared bank loans along with interest by paying Rs 1071.39 Crores with the support of the State Government and released all projects from mortgage. In the year 2016, the new government decided to allot the finished and semi-finished flats at Bandlaguda and Pocharam projects to the government employees with certain guidelines.

Superseding the earlier orders, the State Government on March 10, 2020 decided to dispose off all the assets of Telangana Rajiv Swagruha Corporation including the properties at Bandlaguda and Pocharam by conducting an open auction in a fair and transparent manner. The auction shall be conducted in an “ as is where is” basis, duly fixing the upset price by taking the recommendations of a reputed consulting firm who is well-acquainted with the real estate market. (Maxim News)