How National Housing Bank is stonewalling the implementation of the PMAY

Pradhan Mantri Awas Yojana (PMAY) was launched by the Government with a view to provide affordable housing in rural and urban areas so that the people who are eligible under the scheme can purchase a house by availing the loans from the Banks and other Financial Institutions at concessional rates by availing the Credit Link Subsidy Scheme (CLSS).

Most of the Government schemes started or launched for the welfare of the people are not implemented by the Government agencies with the same spirit, with which these schemes are launched by the Government, defeating the very purpose for which these schemes were launched and hence the benefits of these schemes are denied by these implementing agencies to most of the eligible people.

I would like to elaborate this indifferent attitude of the various implementing agencies with the help of one true example. One unmarried women, having her independent source of income, was allotted the LIG Flat by the Delhi Development Authority. The Flat allotted to women was  constructed under PMAY Scheme. Women applied for the housing loan for the purchase of this allotted flat to LIC Housing Finance Limited (LICHFL).  LICHFL disbursed the loan but refused to allow the CLSS on the loan despite the fact that the women was fully eligible and entitled for the same. Aggrieved with the decision of the LICHFL, women lodged a complaint with the National Housing Bank vide Complaint Number : COMP/6712/2018 Dated 25/11/2018.

In this case, first the Financial Institution namely LICHFL has tried to obstruct the implementation of the scheme by refusing the CLSS benefit to the eligible women. Then again, when the complaint was made with the National Housing Bank, the NHB has miserably failed to resolve or respond to the complaint despite a substantial period of more than 8 months have already passed from the date of the complaint.

National Housing Bank is supposed to dispose off the complaints within a reasonable period of 30 to 60 days and if the person making the complaint is not satisfied with the resolution, he or she can make an appeal to the higher authorities in National Housing Bank. However, what is more shocking in this case is the fact, that the online system of the National Housing Bank is still showing the status of the Complaint as “ Under Process” after a substantial period of more than 8 months. Till the time this complaint will remain as “Under Process”, even the appeal against the same can not be made.  It appears that National Housing Bank is deliberately sitting on the complaints indefinitely with a view to stonewall the entire process of grant of CLSS subsidy under the PMAY scheme to the eligible persons.

Under the normal circumstances, it should not take more than a month’s time to resolve such complaints as full particulars are provided in the complaints and NHB has to decide on the eligibility aspect ,which is well defined in the scheme. However, in the instant case , NHB is sitting silent for the last more than 8 months and it seems it may not be able to resolve this complaint in near future as it has no intention for resolving the complaint.