Tarun Karthick
Sri Vijaya Puram, 05 June 2025
The Communist Party of India (Marxist) has called upon the Andaman and Nicobar Administration to urgently review the progress of the housing construction under the Pradhan Mantri Awas Yojana (Urban) at Prothrapur and Brichgunj. In a letter addressed to the Chief Secretary, D. Ayyappan, Secretary of the CPI (M) A&N State Organising Committee, demanded that suitable directions be issued to the Municipal Council and NBCC to expedite the work and complete the project within a specified timeframe.
Highlighting the distress faced by the beneficiaries, Ayyappan requested the Administration to instruct Canara Bank to halt the recovery of housing loan instalments until the flats are officially allotted to the beneficiaries. He emphasized that the beneficiaries, who are currently living in rented accommodations, are unable to afford both rent and loan repayments simultaneously.
According to the letter, 329 beneficiaries were initially identified for allotment of flats under PMAY (Urban) at Sri Vijaya Puram, of which 206 were selected after scrutiny. Each of them deposited ₹90,000 with the Municipal Council. They were also instructed to apply for housing loans from Canara Bank’s Mohanpura branch, with the project’s construction entrusted to the National Buildings Construction Corporation (NBCC). Two sites—Brichgunj and Prothrapur—were earmarked for construction.
Canara Bank sanctioned ₹8 lakh as loan for each of the 206 beneficiaries, and the first instalment of ₹2.4 lakh per beneficiary was released to the Municipal Council around two years ago. It was initially assured that construction would be completed and possession handed over by the end of 2024. The beneficiaries were also told that loan repayment would begin only after possession.
However, Ayyappan alleged that the construction has progressed at a snail’s pace. Only 27 flats have seen partial construction at Prothrapur, while Brichgunj has only undergone ground levelling. “There is no possibility of handing over the promised 206 flats within the next two years,” Ayyappan said.
He further stated that, contrary to earlier assurances, Canara Bank has begun deducting EMIs from the beneficiaries’ bank accounts, causing immense stress among the poor families who are still without homes. He criticised the Administration for failing to intervene and called the bank’s actions “unjustified.”
Drawing comparisons with other states, Ayyappan pointed out that some state governments like Kerala are providing free housing to the homeless, whereas in the A&N Islands, poor families are being burdened with loans for incomplete homes. He warned that loan defaults caused by this situation may negatively impact beneficiaries’ credit scores and financial reputations.
The CPI (M) has demanded immediate administrative intervention to halt coercive recovery measures and ensure timely completion and allotment of flats under the central housing scheme.