The Tamil Nadu Housing Board has warned that it will cancel the allotments made to thousands of its beneficiaries who have not paid their dues. Residents of at least 48,000 dwelling units constructed by the TNHB over the last two decades are yet to pay their dues that according to sources, would run into crores of rupees.

The State government through a G.O. in September last year waived penal interest to the tune of Rs. 150 crore that these house owners owed the Board. The G.O. stipulated that by March 27, 2013, the allottees would have to pay their dues under reduced interests to the Board and take their sale deeds. However, so far of the 48,402 persons across the State, only 1,593 persons have availed the scheme. These allottees have purchased the TNHB houses under hire purchase scheme where dues are to be paid before the 10{+t}{+h}of every month; or, a penal interest is levied. TNHB sources said this was the final opportunity for the allottees to pay and get their sale deeds. Delays due to genuine medical reasons, accidents or death of the allottee would be reasons for exemption from cancellation. The TNHB has, for the past several years, stopped selling houses on hire purchase basis and is instead constructing apartments on the basis of self-financing schemes. Owners now have to pay up-front at each stage of construction and by the time the work is completed, they would have finished paying and can take possession of the house.

“Why should we go for hire purchase when the banking system has spread and people are going in for housing loans to purchase homes like in the private sector,” explained a source. In Chennai alone, 2,207 housing owners in Anna Nagar, 2,175 in K K Nagar, 947 in Mogappair and 401 in Besant Nagar were to pay their dues.

Residents of at least 48,000 dwelling units constructed by the board over the past two decades are yet to pay their dues