Vadodara Urban Development Authority Faces Criticism Over PMAY Loan Guarantee Issues

Vadodara, January 17 – Beneficiaries of the Pradhan Mantri Awas Yojana (PMAY) under the EWS-1 and EWS-2 categories have threatened a hunger strike over difficulties in securing bank loans. A memorandum highlighting these grievances was submitted to the Vadodara Urban Development Authority (VUDA).

Key Concerns Raised by Activists

Social and RTI activist groups have expressed concerns regarding the economic hardships faced by 243 beneficiaries of the housing project in Bhaily-Bil-Sevasi-Khanpur-Ankodia. During a VUDA board meeting held on December 16, 2024, a proposal was made to assist these beneficiaries by acting as guarantors for bank loans. This would ensure that beneficiaries could make timely payments for their homes. However, no concrete action has been taken, leaving many in a financial bind.

The activists emphasized:

• VUDA must facilitate loans with banks by acting as guarantors for beneficiaries struggling to secure funding.
• Beneficiaries should be assured that their homes will not be canceled due to financial difficulties.
• Beneficiary Defaults and Notices

Despite notices sent to the beneficiaries, many have failed to respond or repay their dues.

• 243 beneficiaries have shown reluctance to pay their installments.
• VUDA has issued four notices to these beneficiaries, but no effective response has been received.
• Decisions Taken During VUDA's Meeting

During the meeting, the following resolutions were passed:

• Advertising Vacant Units: Out of the total housing units, 102 remain unallocated. These will be advertised for reallocation.
• Loan Guarantees: VUDA will act as a guarantor for eligible beneficiaries to secure loans.
• Cancellation of Allotments: If a beneficiary fails to repay the loan installments despite VUDA’s guarantee, the allotment will be canceled, and the unit will be reallocated to another applicant.
  Demands by Activists

Activists insist that VUDA should:

Assist all beneficiaries in securing loans and ensure no home cancellations due to financial challenges.
Conduct follow-ups to address grievances effectively.

Beneficiaries and activists await a timely resolution from VUDA to avoid further protests, including the threatened hunger strike. This ongoing issue underscores the challenges in implementing affordable housing schemes for economically weaker sections.