Lucknow Development Authority (LDA) is set to introduce a significant reform in interest calculation methods for overdue property payments, aiming to alleviate financial burdens faced by allottees. Currently, the calculation of interest on overdue instalments follows a compound interest model, which has led to substantial debt accumulation for some allottees, increasing from nominal amounts to exorbitant figures over time.
The proposed shift from compound interest to simple interest is expected to curtail the rapid growth of debt, benefiting approximately 2,500 allottees who have struggled with escalating payment obligations. This reform initiative will be tabled for discussion and approval at an upcoming LDA board meeting scheduled for July, underlining the authority’s commitment to fostering financial relief and stability within its community of property owners.
Highlighting the rationale behind the proposed reform, a senior LDA official emphasized that many allottees have witnessed their debts escalate dramatically, often from modest sums to staggering liabilities amounting to Rs 25-30 lakh. By adopting a simple interest approach, LDA aims to mitigate the financial strain on allottees, promoting greater affordability and sustainable property ownership.
In addition to the interest rate reform, LDA is poised to expand its operational jurisdiction significantly. Originally covering 1,000 sqkm, the authority plans to extend its reach to 2,500 sqkm, encompassing all villages within Lucknow’s development blocks. This strategic expansion includes areas such as Sarojininagar, Malihabad, Kakori, Bakshi Ka Talab, Gosaiganj, and Mohanlalganj, reflecting a deliberate shift towards broader geographic coverage to enhance developmental impact and economic prospects for current and future property owners.
Furthermore, LDA is contemplating a reduction in the prices of unsold flats to stimulate market demand. Notably, several housing projects, including Anubhuti Apartments in Aliganj, Rashmilok Apartments on Raebareli road, and Sujan Apartments on Sitapur road, have faced challenges in sales due to perceived high pricing. An official indicated that once approved, the price adjustments will make LDA flats more competitive and accessible to potential buyers, thereby addressing market dynamics and fostering a vibrant real estate market in Lucknow. As LDA prepares to implement these strategic initiatives, stakeholders anticipate positive outcomes that will enhance affordability, promote equitable development, and reinforce the authority’s role in facilitating sustainable urban growth across Lucknow and its surrounding areas.
