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Prospective applicants protest over demand to raise ‘personal loans’ to buy government flats
At Lunawa Sea View Residencies meant for ‘low and middle income families’
BY SURESH PERERA
Prospective buyers of Sea View Residencies at Lunawa developed by the Urban Settlement Development Authority (USDA) for “low and middle income families” have been left kicking their heels after they were informed last week to raise “personal loans” ranging from Rs. 3.5 to Rs. 4.1 million from any financial institution to procure the units.
This is apart from the 25% down-payment plus another Rs. 240,000 as “related charges”, which have to be paid upfront to acquire the flats, the prices of which range from Rs. 4.56 million to Rs. 5.58 million.
For example, to procure a unit valued at Rs. 4.56 million on the fourth floor of the complex, one has to make a down-payment of Rs. 1.14 million.
The general practice earlier when selling housing units in complexes specifically meant for “low and middle income families” was for the government institution concerned to arrange a feasible credit facility largely through HDFC Bank.
However, prospective buyers of Sea View Residencies complained that they were summoned to ‘Sethsiripaya’ at Battaramulla on Tuesday and told in no uncertain terms that they need to secure a bank loan if they wanted to procure a unit in the newly-built housing complex.
“When we protested that we are low and middle income earners, and no financial institution would offer a credit facility without collateral, an official interjected that there was then no option, but to give up the idea of acquiring a flat”, the distraught buyers said.
Application forms were initially issued to interested buyers on a non-refundable deposit of Rs. 2,000 each. After shortlisting applicants, interviews were called, where they were assured that after the 25% down-payment on the total value of each unit was made, a credit facility would be arranged through the Bank of Ceylon under a monthly repayment plan at 6.25% per annum, they noted.
The availability of a bank facility was also clearly outlined in letters sent to buyers shortlisted as “eligible applicants” to purchase the flats. However, in a sudden turnaround, the promised loan facility has been ditched, they complained.
Some prospective aspirants had in fact approached banks for some degree of relief, but were specifically told that they should either surrender the deed of the flat or some other form of collateral to secure a ‘personal loan’.
“If we had millions of rupees the USDA is now demanding for the units, we could have purchased a small house in the area without waiting for more than a year until the housing complex was completed”, they reasoned.
Whereas the highest priced unit in the complex costs Rs. 5.58 million, there’s a small house put up for sale for Rs. 5.5 million close to Moratuwa town, another shortlisted applicant said. “If I had ready cash, I would prefer to buy an individual house”.
“We were asked to make the 25% down-payment as early as possible, but in case the balance is not settled within the time-frame, refunds will be subject to an unspecified penalty”, he further said.
It appears that the government has built the Sea View Residencies for the wealthy or for those who pump funds, hold on for some time and resell at a considerable margin, he opined. “The deserving has been elbowed out”.
USDA Director-General, Major General (Retd.) Udaya Nanayakkara assured that he was aware of the issue and discussions are ongoing with banks to evolve a solution.
“We wanted to recover the construction cost of the housing complex as the land value has not been calculated into the price”, he told The Sunday Island.
“We were looking at recouping the investment upfront without opting for a time-consuming repayment plan”, he explained.
Another official, who asked not to be identified, admitted that 90% of the shortlisted applicants are now unable to procure units without a workable repayment scheme.
“We were aware that prospective buyers would be left in the lurch sans a bank facility as low and middle income earners don’t have access to millions of rupees in liquid cash. However, we had to adhere to UDA (Urban Development Authority) guidelines”, he asserted.
He said that with the growing displeasure over preference to “people who can afford” rather than “those who deserve” has resulted in looking at the process afresh and the possibility of arranging a bank facility is on the cards.
The President, and the Prime Minister, as Housing Minister, should be made aware of obstacles placed by an officialdom insensitive to the average man’s housing needs, he noted.
The applicants were shortlisted on the basis of a monthly household income of Rs. 75,000. Those who earned more than this were rejected as the flats are meant for low and middle income families, he added.
“At the end of the day, the displeasure generated will reflect on the government”, he added.
A UDA official said the complex was developed by the USDA and therefore “it’s their baby”.
“We had nothing to do with it”.
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PCoI on Easter Sunday attacks:
By Shamindra Ferdinando
Attorney General Dappula de Livera, PC is not bound by recommendations made by the Presidential Commission of Inquiry (P CoI) into the 2019 Easter Sunday carnage, or presidential directives in that regard, according to authoritative sources.
They said that the AG couldn’t under any circumstances initiate legal proceedings until he had received the full PCoI report.
President Gotabaya Rajapaksa received the PCoI report on Feb 1. The President’s Office delivered a set of PCoI reports to Speaker Mahinda Yapa Abeywardena on Feb 23, a day after the report was presented to the cabinet of ministers. The Island raised the matter with relevant authorities in the wake of a section of the media reporting the PCoI recommending punitive measures against former President Maithripala Sirisena, Defence Secretary Hemasiri Fernando, IGP Pujitha Jayasundera, Chief of State Intelligence Senior DIG Nilantha Jayawardena, Chief of National Intelligence retired DIG Sisira Mendis and All Ceylon Makkal Congress (ACMC) leader and Samagi Jana Balavegaya MP Rishad Bathiudeen et al over the Easter Sunday carnage.
Sources pointed out that due to the inordinate delay in sharing the PCoI report with the AG, the department hadn’t been able to take preliminary measures required to initiate the proceedings. Sources said that a team of officers would take at least six weeks or more to examine the report before tangible measures could be taken.
With the AG scheduled to retire on May 24, 2021, even if the AG Department received the P CoI it would be quite a tough task to initiate proceedings ahead of retirement, sources said. However, in terms of the 20th Amendment to the Constitution enacted in last October, both the AG and the IGP could receive extensions beyond 60 at the President’s discretion.
Dappula de Livera received an Acting appointment as the AG a week after the Easter Sunday carnage whereas his predecessor Jayantha Jayasuriya, PC, was elevated to Chief Justice.
Responding to another query, sources said that the Attorney General two weeks ago requested Secretary to the President for a copy of the P CoI. However, the AG was yet to receive one, sources said. In spite of the AG not receiving a P CoI copy, the AG had instructed the IGP to obtain a copy of the report when he requested the police to complete investigations into the Easter Sunday carnage. The AG issued specific instructions after having examined police files pertaining to the investigations.
The IGP, too, hadn’t received a copy so far though some sections of the report were in the public domain.
Agriculture Minister Mahindananda Aluthgamage displayed at a live political programme on Derana a copy of the P CoI report he received at the cabinet meeting earlier in the day.
Sources said that the Attorney General’s Department couldn’t decide on a course of action in respect of the Easter carnage on the basis of a section of the report. In terms of the Commission of Inquiry Act (Section 24), the AG enjoyed significant powers/authority in respect of investigations; sources said adding that the Department urgently required both the P CoI report and police investigations report. The Attorney General’s Department has raised the delay in receiving a P CoI report amidst the Catholic Church attacking the government over the same issue.
Sources said that ministerial committee appointed to study the P CoI report couldn’t decide on how to proceed with the recommendations and the matter was entirely in the hands of the AG. Sources pointed out that the delay on the part of the government to release the report had received the attention of sections of the international media, including the New York Times. Public Security Minister retired Rear Admiral Sarath Weerasekera having met Malcolm Cardinal Ranjith at the Bishop’s House on Dec 8, 2020 said that the AG would get a copy of the P CoI report once the President received it. Minister Weerasekera said that the CID had handed over the relevant files after having completed investigations into eight blasts. Referring to the Parliamentary Select Committee (PSC) report on the Easter Sunday carnage, the former Navy Chief of Staff said that all such documents would have to be brought to one place and considered before initiating legal proceedings. Acknowledging that there could be delays, lawmaker Weerasekera said that on the instructions of the Attorney General a 12-member team of lawyers was working on the case. The minister vowed to expose the mastermind behind the Easter Sunday attacks. Investigations continued while some of those wanted were overseas, the minister said.
The minister acknowledged that the Attorney General couldn’t proceed without the P CoI report. Minister Weerasekera reiterated that once the President received the P CoI report, it would be sent to the Attorney General. The minister said that there were documents two to three feet high that needed scrutiny. The minister assured comprehensive investigation. The minister said that investigations pertaining to eight blasts had been completed and the reports handed over to the AG. However, the Attorney General had found shortcomings in those investigations.
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By Saman Indrajith
The Presidential Commission of Inquiry on the Easter Sunday bombings had failed to identify the mastermind of , the JVP said yesterday.
Addressing the media at the party headquarters in Pelawatte, JVP Propaganda Secretary MP Vijitha Herath said that the PCoI report had levelled accusations against former President Maithripala Sirisena, former IGP and head of intelligence for their dereliction of duty, shirking of responsibilities and not taking action to prevent the attacks and negligence. There were reference to the causes of the terror attacks and actions to be taken to avoid such attacks and the influence of extremist organisations. “However, there is no mention of the mastermind of the attacks, the handlers of the attackers and those whose interests the carnage served. It is also not mentioned whether there has been any foreign or local organisation behind those attacks. As per the PCoI report the attack took place as a result of culmination of extremism.
“According to the PCoI the extremist activities were a result of the prevailing political situation then. The entire nation was waiting to see who was responsible and who masterminded those attacks. The PCoI has failed to identify the true culprits responsible for the terror attacks. The report says that the leader of the suicide cadres killed himself in the attacks and it was a puzzle. That means those who are actually responsible for the attacks are still at large. The report does not provide exact details of the sources of the attacks. The PCoI had sittings for one year and five months. It summoned various persons and got their statements but it has failed to shed any light on the terror attacks. Everybody knows that the top leaders of the government and heads of security and intelligence establishments failed in their duties. Ranil Wickremesinghe was the second in command and he too is bound by the responsibility but the PCoI report fails to identify him as one of the persons against whom legal action should be instituted. The PCoI has treated Wickremesinghe and former President Maithripala Sirisena differently. We are not telling that this report is a total failure but we cannot accept this as a complete report. The PCoI handed over its report to the President on Feb 1. After 23 days it was sent to Parliament. Now, a copy of the report is there in the parliamentary library for the perusal of MPs.”
Herath said that the PCoI did not have powers to take punitive action. “It only has powers to name those responsible and recommend action to be taken against those named.
