A PMAY housing lottery in Lucknow sparked protests after the UP Housing and Development Board gave preference to applicants able to pay the full amount upfront, sidelining those opting for installment payments. Of the 744 units in the draw, most were reissued homes from previous allotments where full payment had caused dropouts. Many low-income applicants, particularly for INR 5 lakh units, felt misled as the payment clause was not clearly highlighted. This marks the first time such a preference has been applied. An inquiry has been launched, with officials reviewing communication gaps. The move has raised broader concerns about equitable access to affordable housing.
In Lucknow, a much-anticipated PMAY housing lottery turned contentious after the Uttar Pradesh Housing and Development Board gave priority to applicants who could pay the full amount upfront, causing unrest among those who had opted for installment-based payments. The draw, which took place at the Awadh Vihar Yojana campus, included 744 units 667 of which were reissued homes left unsold in earlier rounds after previous allottees withdrew upon being asked to pay the full sum before possession.
What was intended to be a step towards affordable housing for all quickly escalated into frustration for many low-income applicants, especially those vying for the 300 sq ft units priced around INR 5 lakh. Several protestors claimed the clause requiring full payment was mentioned discreetly in the brochure rather than being clearly highlighted.
This is the first instance where the housing board has introduced a preference for lump-sum payments under a PMAY lottery. The policy change, according to officials, was meant to avoid delays in possession and prevent the kind of dropouts seen in past allotments. However, those without the financial capacity to pay in full now find themselves excluded from the process despite being eligible.
Housing Commissioner Balkar Singh has since initiated an inquiry into the matter. He acknowledged that the issue needs review and has instructed a detailed examination of the decision-making and communication gaps that led to the protests.
In contrast to this episode, previous lotteries under the Lucknow Development Authority (LDA) had seen relatively smooth operations, including one conducted late last year for 369 PMAY units. That draw was carried out transparently, with applicants themselves involved in the lottery process to ensure fairness.
The unexpected shift in selection criteria has not only disrupted applicants- trust but also raised concerns about the future of inclusive housing policies. As many of these protests have pointed out, affordable housing must remain financially accessible-both in principle and in practice.
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