Poverty forcing the urban poor out of their homes

Many have had to sell or pledge houses built under social security scheme

: Poverty and illness have forced over 100 residents to sell off or pledge their houses built under a social security scheme for poor.

Tapping the funds from the Jawaharlal Nehru National Urban Renewal Mission, the Kochi Corporation had supported construction of around 3,800 houses in the city. The houses of 600 sq.ft were built under the Basic Services to Urban Poor component of the Mission.

The financial aid for the houses, including the Central and State support and the share of the urban local body amounted to Rs. 1.20 lakh and the individuals had to raise the remaining funds for the houses. Each unit incurred considerable amount for completion and its documents were registered in the name of the women of the houses.

It was also stipulated that the title deeds of the houses would be kept in the custody of the local body for seven years so as to prevent the beneficiaries from selling off the units that were constructed with government aid before a cut-off period. The beneficiaries who wished to get their houses released before the expiry of the term had to pay back the subsidy component with an interest of 18 per cent after obtaining permission from the Kochi Corporation council. Despite the high rate of interest charged on the subsidy amount, over 100 residents have already repaid the aid and sold off their houses or raised loans.

Most number of such cases was reported from west Kochi where 90 persons have resorted to such measures, said E.M. Najeeb, member secretary of the Kudumbasree for West Kochi region. A few residents sold their houses for meeting medical expenses. Some others used the money to marry off their children. Financial constraints have forced these residents to such measures. It has also rendered some residents homeless, he said. A. Nisa, the member secretary for the eastern region, confirmed 15 such cases from the region. Medical treatment for cancer, expenses for the marriage of children and debt incurred due to the construction of houses have forced people to go for this step, she said. Some beneficiaries have incurred around Rs. 10 lakh for constructing the houses, which was raised by way of loans. They sold the houses for repaying the loan, she said.

Confirming the developments, Essy Joseph, chairperson of the Welfare Standing Committee of the Kochi Corporation, said the local body had adopted a lenient view by allowing some poor to raise loans using the documents. Such steps were initiated for the deserving persons with the approval of the Corporation council, she said.