LIC’s Kerala housing project caught in a legal tangleMarch 31st, 2008 - 7:54 pm ICT by admin
Thiruvananthapuram, March 31 (IANS) An ambitious housing project in Kerala by the insurance giant Life Insurance Corporation (LIC) is yet to take off, tangled as it is in legal problems, over a year after the project’s foundation stone was laid. The foundation stone laying ceremony for the multi-storey project, a stone’s throw from the main office of the LIC here, took place in December 2006 but the construction is yet to start after a case was filed against the allotment of flats.
“Yes, there has been a delay and it occurred because a person who failed to get a flat filed a case. The case is going on and we expect that it (judgement) would be in our favour because the allotment process was fair and transparent,” said Swaminathan, senior divisional manager of LIC.
Nearly 56 flats were allotted. For the three-bedroom house the price tag was of Rs.2.5 million and for a two-bedroom house Rs.2 million.
Allotees are a worried lot as they have paid the advance amount of Rs.50,000 and also the first instalment of Rs.450,000 but the work has not yet started.
“We have no word from the LIC authorities about the delay and we were told that the project would be completed in 24 months once the work begins. And after 15 months except for the foundation stone nothing has moved. With the cost escalating, we are worried if we will have to pay more,” said an allottee who did not wish to be identified.
Swaminathan allays such fears. He said: “We are confident that we will be able to deliver the flats in 10 months once the construction starts and there would be no escalation of price.”