News
Prospective applicants protest over demand to raise ‘personal loans’ to buy government flats
At Lunawa Sea View Residencies meant for ‘low and middle income families’
BY SURESH PERERA
Prospective buyers of Sea View Residencies at Lunawa developed by the Urban Settlement Development Authority (USDA) for “low and middle income families” have been left kicking their heels after they were informed last week to raise “personal loans” ranging from Rs. 3.5 to Rs. 4.1 million from any financial institution to procure the units.
This is apart from the 25% down-payment plus another Rs. 240,000 as “related charges”, which have to be paid upfront to acquire the flats, the prices of which range from Rs. 4.56 million to Rs. 5.58 million.
For example, to procure a unit valued at Rs. 4.56 million on the fourth floor of the complex, one has to make a down-payment of Rs. 1.14 million.
The general practice earlier when selling housing units in complexes specifically meant for “low and middle income families” was for the government institution concerned to arrange a feasible credit facility largely through HDFC Bank.
However, prospective buyers of Sea View Residencies complained that they were summoned to ‘Sethsiripaya’ at Battaramulla on Tuesday and told in no uncertain terms that they need to secure a bank loan if they wanted to procure a unit in the newly-built housing complex.
“When we protested that we are low and middle income earners, and no financial institution would offer a credit facility without collateral, an official interjected that there was then no option, but to give up the idea of acquiring a flat”, the distraught buyers said.
Application forms were initially issued to interested buyers on a non-refundable deposit of Rs. 2,000 each. After shortlisting applicants, interviews were called, where they were assured that after the 25% down-payment on the total value of each unit was made, a credit facility would be arranged through the Bank of Ceylon under a monthly repayment plan at 6.25% per annum, they noted.
The availability of a bank facility was also clearly outlined in letters sent to buyers shortlisted as “eligible applicants” to purchase the flats. However, in a sudden turnaround, the promised loan facility has been ditched, they complained.
Some prospective aspirants had in fact approached banks for some degree of relief, but were specifically told that they should either surrender the deed of the flat or some other form of collateral to secure a ‘personal loan’.
“If we had millions of rupees the USDA is now demanding for the units, we could have purchased a small house in the area without waiting for more than a year until the housing complex was completed”, they reasoned.
Whereas the highest priced unit in the complex costs Rs. 5.58 million, there’s a small house put up for sale for Rs. 5.5 million close to Moratuwa town, another shortlisted applicant said. “If I had ready cash, I would prefer to buy an individual house”.
“We were asked to make the 25% down-payment as early as possible, but in case the balance is not settled within the time-frame, refunds will be subject to an unspecified penalty”, he further said.
It appears that the government has built the Sea View Residencies for the wealthy or for those who pump funds, hold on for some time and resell at a considerable margin, he opined. “The deserving has been elbowed out”.
USDA Director-General, Major General (Retd.) Udaya Nanayakkara assured that he was aware of the issue and discussions are ongoing with banks to evolve a solution.
“We wanted to recover the construction cost of the housing complex as the land value has not been calculated into the price”, he told The Sunday Island.
“We were looking at recouping the investment upfront without opting for a time-consuming repayment plan”, he explained.
Another official, who asked not to be identified, admitted that 90% of the shortlisted applicants are now unable to procure units without a workable repayment scheme.
“We were aware that prospective buyers would be left in the lurch sans a bank facility as low and middle income earners don’t have access to millions of rupees in liquid cash. However, we had to adhere to UDA (Urban Development Authority) guidelines”, he asserted.
He said that with the growing displeasure over preference to “people who can afford” rather than “those who deserve” has resulted in looking at the process afresh and the possibility of arranging a bank facility is on the cards.
The President, and the Prime Minister, as Housing Minister, should be made aware of obstacles placed by an officialdom insensitive to the average man’s housing needs, he noted.
The applicants were shortlisted on the basis of a monthly household income of Rs. 75,000. Those who earned more than this were rejected as the flats are meant for low and middle income families, he added.
“At the end of the day, the displeasure generated will reflect on the government”, he added.
A UDA official said the complex was developed by the USDA and therefore “it’s their baby”.
“We had nothing to do with it”.
News
Fuel crunch looms
Govt. tells fuel distributors to maintain stocks to ensure uninterrupted supplies
by Saman Indrajith and Norman Palihawadane
The government had instructed private fuel distributors to maintain minimum stocks and ensure uninterrupted supplies to the market, Energy Minister Anura Karunathilaka told Parliament yesterday (06).
Karunathilaka said the Ministry of Energy Secretary had notified the relevant companies of the requirement, following a reduction in supplies by some private distributors, amid higher international fuel prices.
The Minister said private companies had informed the government that they were facing losses because international prices had risen while fuel was being sold, locally, at prevailing prices. As a result, some companies had reduced the volumes released to the market.
The reduced supplies had increased the burden on the Ceylon Petroleum Corporation (CPC), whose share of the diesel market had risen from about 54% to 82%, the Minister said.
“The CPC currently holds an 82% share of the market,” he said, adding that it had increased its supplies, compared with February, to compensate for the reduction by private distributors.
Karunathilaka said the government could not, under the existing agreements with private companies, specify the quantities they should supply to individual filling stations. However, it could require them to maintain minimum stocks in the country.
The Minister said the Energy Ministry had already instructed companies that had failed to maintain the required stocks to take steps to prevent supply disruptions.
The Minister attributed the queues reported at some filling stations to reduced supplies from private distributors, as well as normal variations in fuel distribution. He also said demand for CPC fuel had increased because private companies generally did not provide fuel to dealers on credit, while the CPC offered a three-day credit facility.
“We expect that, as the Ceylon Petroleum Corporation takes on this additional burden, the problem will ease to some extent by Wednesday or Thursday,” Karunathilaka said.
He said instructions had also been issued to increase supplies to CPC filling stations. A special discussion on the issue is scheduled for today (07), with officials of the Energy Ministry and CPC expected to participate,
along with President Anura Kumara Dissanayake.
Meanwhile, Petroleum Dealers’ Association officials have called for an early solution to the supply issue. Association Chairman D.V. Shantha Silva said queues had been reported at many filling stations, mainly those operated by private distributors.
He said the situation was not due to an overall shortage of fuel, but was linked to reduced orders by Lanka IOC, Sinopec and R.M. Parks amid concerns over losses incurred on fuel sales.
The Ceylon Petroleum Private Tanker Owners Association has urged motorists to refrain from panic buying, saying there was no nationwide disruption to fuel supplies.
The government earlier increased fuel prices and introduced a per-litre diesel subsidy following concerns raised by distributors over rising international prices.
News
Gnansara Thera to be assigned to prison printing section: Officials
by Norman Palihawadane
Bodu Bala Sena General Secretary Ven. Galagodaatte Gnanasara Thera, who has been ordered by the court to serve the remainder of his prison sentence, is to be assigned to the prison ‘printing work party’, prison officials said yesterday.
The monk was produced before the Colombo High Court yesterday by prison officials in connection with a warrant issued by the court.
He appeared before the court in civilian attire.
Prison sources said arrangements were being finalised for his detention and that he would subsequently be assigned to the printing work party.
The Thera initially objected when prison officials instructed him to change from his robes into the attire worn by convicted prisoners.
He later agreed to wear the prescribed prison clothes, sources said.
The Supreme Court, in September, annulled the presidential pardon granted to Gnanasara Thera in 2019. He had been serving a six-year prison sentence imposed following his conviction for contempt of court but had served only about nine months when then President Maithripala Sirisena granted him a presidential pardon in May 2019.
Following the Supreme Court ruling, the Thera was required to serve the remainder of his sentence. He was subsequently reported missing, prompting the Court of Appeal to issue an open warrant for his arrest.
The Court of Appeal on Monday ordered the authorities to enforce the remainder of his prison sentence.
News
Speaker rejects Ajith Perera’s privilege complaint
Speaker Dr. Jagath Wickramaratne yesterday ruled that a privilege complaint submitted by SJB Kalutara District MP Ajith P. Perera did not constitute a prima facie breach of parliamentary privilege.
The ruling was made in response to a notice of privilege submitted by Perera on October 02.
Perera alleged that his parliamentary privileges had been breached over the failure to take formal action or reach a final decision on a written request submitted on August 03 by 18 Opposition MPs seeking the appointment of a Special Select Committee to investigate delays in the judicial system and prison overcrowding.
He had also requested that the matter be referred to the Committee on Ethics and Privileges for investigation and recommendations.
In his ruling, Speaker Wickramaratne said the Speaker, as the Presiding Authority and guardian of the powers, rights and privileges of Parliament, could not be subjected to a privilege complaint or disciplinary inquiry by a committee subordinate to the Chair in respect of actions taken in an official capacity.
He said that, under the Standing Orders, the Speaker was required to independently determine whether a prima facie case of breach of privilege existed.
Referring a complaint against the Speaker to a committee functioning under the Speaker’s authority would, therefore, create a procedural contradiction, he said.
Accordingly, the Speaker ruled that Perera’s notice did not constitute a prima facie breach of parliamentary privilege and disallowed the request to refer the matter to the Committee on Ethics and Privileges.
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