The Ahana Enclave housing project in Lucknow has missed its completion deadline, resulting in a financial burden of Rs 17 crore annually for the Lucknow Municipal Corporation (LMC). The delay has also caused interest payments on borrowed funds and unsold flats adding to the financial strain. Corporators have raised concerns about the project's slow progress and its impact on the city's finances. The LMC aims to expedite the sale of remaining flats to alleviate financial pressure and complete the project by December 2023.
The Lucknow Municipal Corporation (LMC) is facing a significant financial setback, with an annual burden of Rs 17 crore, as the ambitious Ahana Enclave housing project failed to meet its completion deadline of 2022. The issue was brought to light by a group of corporators during the first executive committee meeting, where they expressed concern over the project's delay and its impact on the city's finances. The Ahana Enclave housing project, estimated to cost Rs 291 crore, was envisioned to facilitate the development of 684 flats and 24 shops in Aurangabad Khalsa on Raebareli Road. The completion date was initially set for December 2022. To fund the project, the government granted Rs 35 crore from the revolving fund, and an additional Rs 200 crore was obtained through municipal bonds in November 2020. Moreover, the allocation of 153 flats contributed an extra Rs 20 crore to the funding. Corporator Mukesh Singh Chauhan from Ismailganj-I ward raised concerns about the project's delay and its financial implications. He pointed out that the LMC is now burdened with an annual interest payment of Rs 17 crore on borrowed funds and has already paid Rs 42.5 crore as interest collected through property taxes. To make matters worse, approximately 78% of the flats remain unsold, exacerbating the financial strain on the municipal corporation. In a letter addressed to Mayor Sushma Kharkwal, Chauhan urged the urgent need for an action plan to expedite the sale of the remaining flats and shops. This, he emphasized, would alleviate the financial burden on the LMC and prevent further losses. Another corporator, Amit Choudhary from Bashiratganj, pointed out the negligence in choosing the project's land initially. The unclear approach to the housing society and a pending case in the high court caused delays in the project's progress. As a result, the civic body's plans to generate revenue from selling homes have been put on hold, leading to financial losses. Santosh Rai, a former corporator from Bhawaniganj, whose wife is a current sitting corporator from the ward, likened the project to a white elephant, expressing concerns about the financial burden placed on the city's residents due to the project's escalating costs. Responding to the situation, LMC Chief Engineer Mahesh Chandra Verma assured that the Ahana Enclave housing project must be completed by December 2023. He stated that the apartments would be ready for possession within the next two months. However, given the current challenges faced by the project, stakeholders remain cautious about the timeline and its potential impact on the municipal corporation's financial stability.
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