CHAPTER – I

INTRODUCTION
A: GENERAL OVERVIEW
This Legal Research Work is related to a Government Scheme. A research work on a
Government Scheme is done very often. A research work on a Government Scheme is mainly
done by Social Workers, different non Government and non Profitable Organizations and
sometime there is Government sponsored Researcher to do research on implementation and
functioning of the Scheme.1 The concerned Department or Ministry of the Government in
collaboration with some State University also directly carries out research work for assessment
of defects and problems in any particular Government Scheme. Research is defined as a careful
consideration of study regarding a particular concern or a problem using scientific methods.
Research is a systematic inquiry to describe, explain, predict and control the observed
phenomenon. Research involves inductive and deductive methods. 2

The Government Bodies like a particular Department or Ministry of Government generally

conducts a comprehensive analytical research for assessing policies and schemes which are
implemented by such Department or Ministry of Government. It is more appropriate to do
critical research in such cases because the defects and problems are detected easily in critical
research. It is observed that non Government and non profitable organizations who are involved
in doing research of any Government Scheme always prefer doing critical research. 3

There are many types of research on a Government Scheme like Sociological Research, Research
on Business Perspective of such Government Scheme, Legal Research or Research on legal
aspects of such Government scheme, etc. This particular research work is to be termed as a Legal
Research or supposed to be categorized as a Critical Legal Research. This critical legal research
on the Scheme of Pradhan Mantri Awas Yojana (Urban) is necessary for many reasons but
before seeing those reasons, it is necessary to have a general overview of the Scheme of Pradhan
Mantri Awas Yojana (Urban).4

Pradhan Mantri Awas Yojana (PMAY) is an initiative by Government of India in which

affordable housing will be provided to the urban poor with a target of building 20 million
affordable houses by 31st March 2022. It has two components: Pradhan Mantri Awas Yojana
(Urban) (PMAY-U) for the urban poor and Pradhan Mantri Awaas Yojana (Gramin) (PMAY-G
and also PMAY-R) for the rural poor. This scheme is converged with other schemes to ensure
houses have a toilet, Saubhagya Yojana electricityconnection, Ujjwala Yojana LPG gas
connection, access to drinking water and Jan Dhan banking facilities, etc. Cumulative total
1
S. Giriappa (1998), "Housing Finance and Development in India", Mohit
Publications, New Delhi, pp. 1 -13JB
2
Shodganga.inflibnet.ac.in
3
www.crisil.com
4
Website- pmc.gov.in/en/pmay
number of funded houses approved thus far is 39,25,240 in urban area including the subsumed
RAY scheme and completion of construction of 5 million rural houses by March 2018 and 10
million rural houses by March 2019.

The Pradhan Mantri Awaas Yojana was launched on 25th June 2015 with an aim to provide
affordable housing in urban poor. A proposal is made under Prime Minister Awas Yojana to
build 2 crore houses for urban poor including Economically Weaker Sections and Low Income
Groups in urban areas by the year 2022 through a financial assistance of Rs. 2 trillion (US$28
billion) from Central Government. This Mission has four components viz., In-situ Slum
Redevelopment with private sector participation using land as resource, Affordable Housing
through Credit Linked Subsidy, Affordable Housing in Partnership with private and public sector
and Beneficiary led house construction/enhancement. Under these components, central
assistance will be in the range of Rs. 1 lakh (US$1,400) to Rs. 2.30lakh (US$3,200). The
government has approved an investment of Rs. 439.22billion (US$6.1 billion) for construction of
6,83,724 houses for urban poor including central assistance commitment of Rs. 100.50 billion
(US$1.4 billion) by April 2016.5

The features of Pradhan Mantri Awas Yojana are that the government will provide an interest
subsidy of 6.5% on housing loans availed by the beneficiaries for a period of 20 years under
credit link subsidy scheme (CLSS) from the start of a loan. The houses under Pradhan Mantri
Awas Yojana would be constructed through a technology that is eco-friendly, while allotting
ground floors in any housing scheme under PMAY, preference will be given to differently abled
and older persons.

When the reality of functioning of the Pradhan Mantri Awas Yojana (Urban) (PMAY-U) is
checked after three years of the project launch then lot of defects came up in the Scheme itself
and therefore critical analysis of the Scheme is done to defect all necessary defect in the Scheme.
The Scheme Guidelines have been amended multiple times by the Government and still many
defects persist in the scheme. The aim of this Study is check the different aspects of the defects
seen in the scheme so that best possible solution for removing such defect is discovered during
the course of this Legal Research.

Pradhan Mantri Awas Yojana (PMAY) is an initiative by Government of India in which

affordable housing will be provided to the urban poor with a target of building 20 million
affordable houses by 31st March 2022. It has two components: Pradhan Mantri Awas Yojana
(Urban) (PMAY-U) for the urban poor and Pradhan Mantri Awaas Yojana (Gramin) (PMAY-G
and also PMAY-R) for the rural poor. This scheme is converged with other schemes to ensure
houses have a toilet, Saubhagya Yojana electricity connection, Ujjwala Yojana LPG gas
connection, access to drinking water and Jan Dhan banking facilities, etc. Cumulative total
number of funded houses approved thus far is 39,25,240 in urban area including the subsumed

5
Article- indianexpress.com/article/cities/pune/pmc
RAY scheme and completion of construction of 5 million rural houses by March 2018 and 10
million rural houses by March 2019.6

The Pradhan Mantri Awaas Yojana was launched on 25th June 2015 with an aim to provide
affordable housing in urban poor. A proposal is made under Prime Minister Awas Yojana to
build 2 crore houses for urban poor including Economically Weaker Sections and Low Income
Groups in urban areas by the year 2022 through a financial assistance of Rs. 2 trillion (US$28
billion) from Central Government. This Mission has four components viz., In-situ Slum
Redevelopment with private sector participation using land as resource, Affordable Housing
through Credit Linked Subsidy, Affordable Housing in Partnership with private and public sector
and Beneficiary led house construction/enhancement. Under these components, central
assistance will be in the range of Rs. 1 lakh (US$1,400) to Rs. 2.30 lakh (US$3,200). The
government has approved an investment of Rs. 439.22 billion (US$6.1 billion) for construction
of 6,83,724 houses for urban poor including central assistance commitment of Rs. 100.50 billion
(US$1.4 billion) by April 2016.

The features of Pradhan Mantri Awas Yojana are that the government will provide an interest
subsidy of 6.5% on housing loans availed by the beneficiaries for a period of 20 years under
credit link subsidy scheme (CLSS) from the start of a loan. The houses under Pradhan Mantri
Awas Yojana would be constructed through a technology that is eco-friendly, while allotting
ground floors in any housing scheme under PMAY, preference will be given to differently abled
and older persons.

When the reality of functioning of the Pradhan Mantri Awas Yojana (Urban) (PMAY-U) is
checked after three years of the project launch then lot of defects came up in the Scheme itself
and therefore critical analysis of the Scheme is done to defect all necessary defect in the Scheme.
The Scheme Guidelines have been amended multiple times by the Government and still many
defects persist in the scheme. The aim of this Study is check the different aspects of the defects
seen in the scheme so that best possible solution for removing such defect is discovered during
the course of this Research.7

B: SIGNIFICANCE OF THE STUDY

Food, Clothing and Shelter are basic necessity of a human being. A Welfare State must ensure
that there is adequate means of Food, Clothing and Shelter for its citizens so that all human being
within the territory of the particular Welfare State is not deprived of these basic necessities. It is
however not possible for each and every Welfare State to provide basic necessities to each and

6
Aromar Revi (1990), "Shelter in India", Vikas Publishing House, New Delhi,
pp.1-115
7
Francis Cherunilam Odeyar D. Heggade (Eds) (1987), "Housing in India",
Himalaya Publishing House, Bombay, pp. 1 -150
every individual of that particular Welfare State due to various reasons like economic condition
of that particular country or state or high poverty rate in that particular country. The Government
of India did make few attempts to provide basic necessities for its citizens who come from under
privileged strata of the society. The Government of India launched first rural housing project
under the name “Indira Awas Yojana” in the year 1996. The project was dedicated to ex – Prime
Minister Mrs. Indira Gandhi. This was first move made by the Government of India to provide
shelter to each and every citizen of the country residing in Rural Areas. There was no advertising
and publicity in respect of this project and the budget of the Project was not very high so the
project was not successful. The lack of infrastructure for developing rural housing was also not
available when it came to implementing the Indira Awas Yojana. The Government of India
passed Food Security Act in the year 2013 and there has been very good implementation of the
Food Security Act, 2013. The proper functioning of Food Security no more remains a concern
for the country but the housing still continues to remain an area of concern for the Government
as well as for the maximum number of citizens of this country. The reason for failure of “Indira
Awas Yojana” was not properly assessed at the time of implementing the Pradhan Mantri Awas
Yojana (Urban) (PMAY-U) and this led to emergence of various defects and problems in the
Pradhan Mantri Awas Yojana (Urban) (PMAY-U) Scheme. The scheme is not very much
beneficial for the beneficiary and the scheme has not delivered satisfactory results. The people
living in Urban Areas dreaming of their own home under the scheme are feeling very depressed
because they can well understand that they will not get allocation of homes within 2022. It is
observed that most of the beneficiaries feel that the scheme is unsuccessful. The scheme in fact
has caused lot of losses to the Home Builders and Land Developers who have entered into public
private partnership with Government of India for making construction of houses under Pradhan
Mantri Awas Yojana (Urban) (PMAY-U) Scheme. The Land Developers and Home Builders
who have participated as private partner in Pradhan Mantri Awas Yojana (Urban) (PMAY-U)
Scheme are highly disappointed by the Scheme.

The study made by me is highly significant in this context because critical analysis based on
feedback from the beneficiaries will lead to discovery of the problems faced by the beneficiaries
in the scheme and will also lead to discovery of the grievances of the beneficiaries and will also
lead to finding out of suitable solution or redressal which will ultimately address the defects in
the Pradhan Mantri Awas Yojana (Urban). 8

C: STATEMENT OF PROBLEM
The terms and conditions of the Contract between the Beneficiary and the Urban Local Body
making the contract on behalf of the Central Government for availing the facilities of the Scheme
is not at all suitable for the Beneficiary. The terms and conditions of the Contract for Private

8
K.S. Sharma (1988), "Housing for the masses", Kurukshetra. November,
Vol. XXXVII, pp.8-10
Public Partnership made between the Land Developers / Home Builders and the Government is
actually not favourable for the Builder / Land Developers and so the Housing construction Work
is hampered because Home Builders / Land Developers indulge in unfair and unethical practises
so that losses suffered by them by entering into Public Private Partnership with the Government
is made good. The Statement of Problem relates to doing a critical study of the provisions of
Contracts between Beneficiary and the Urban Local Body in lieu of the Pradhan Mantri Awas
Yojana (Urban) (PMAY-U).

The statement of problem also deals into critical analysis of the terms and conditions of the
Public Private Partnership between the Central Government and the Home Builders / Land
Developers in lieu of the Pradhan Mantri Awas Yojana (Urban) (PMAY-U). A problem is also
seen when it came to payment made by the Home Builders and Land Developers to the Contract
Labourers and Building Material Suppliers. The Terms and Conditions relating to disbursement
of payment from the Central Government to the Home Builders and Land Developers associated
with the Pradhan Mantri Awas Yojana (Urban) (PMAY-U) needs to be modified for successful
functioning of the Public Private Partnership between the Central Government and the Home
Builders / Land Developers. The Terms and Conditions relating to disbursement of payment
from the Central Government to the Home Builders and Land Developers associated with the
Pradhan Mantri Awas Yojana (Urban) (PMAY-U) is not at all beneficial for those Home
Builders and Land Developers. It is observed that the Home Builders and Land Developers who
have taken the responsibility of constructing houses under Pradhan Mantri Awas Yojana (Urban)
(PMAY-U) has become victims of financial insecurity because these Home Builders and Land
Developers are receiving irregular payments from the Central Government. It is further observed
that the Building Material Suppliers and Contract Laborers who are working in association with
those Home Builders / Land Developers

Developers have in turn also become victims of financial insecurity and get irregular payment
from the concerned Home Builders / Land Developers because those Home Builders and Land
Developers themselves are receiving irregular payments from the Central Government.

The terms and conditions in the Public Private Partnership fails to protect the interest of these
Home Builders / Land Developers and also fails to provide these Home Builders / Land
Developers with requisite remedy as far as the issue of irregular disbursement of payment is
concerned. The right to directly approach Civil Courts against Central Government is not
available to the Home Builders / Land Developers so these Land Developers cannot get remedy
from Civil Courts when the payment is not disbursed by the Central Government as per
agreement of the Public Private Partnership. These Land Developers and Home Builders in case
of dispute relating to disbursement of payment are supposed to approach the Mediators
appointed by the Central Government for the purpose of dealing with disputes under the Pradhan
Mantri Awas Yojana (Urban) (PMAY-U) Scheme. It is observed that the Mediators appointed by
the Central Government for the purpose of dealing with disputes are mostly biased and handles
the disputes in very unfair, unreasonable and arbitrary manner. The Mediators appointed by the
Central Government for this purpose unable to resolve dispute satisfactorily because the process
adopted by these mediators for resolving disputes is not a good process in the eyes of law. The
solutions which are mostly provided by these mediators for resolving the disputes are not good
because those solutions are neither based on “principle of equity” nor contain any sort of “legal
reasoning”.

These multiple problems need to be addressed in an expedite manner for proper functioning of
the Scheme of Pradhan Mantri Awas Yojana (Urban) (PMAY-U) and for successful pan India
implementation of the said scheme within 31st March, 2022. The Researcher has framed the
Statement of Problem after making a prima facie Critical Analysis of the different aspects of the
Scheme of Pradhan Mantri Awas Yojana (Urban) (PMAY-U) because the researcher intends to
address the multiple problems and defects related to the scheme of Pradhan Mantri Awas Yojana
(Urban) (PMAY-U) and provide recommendation for removal of each of the defects and
problems observed in the scheme of Pradhan Mantri Awas Yojana (Urban) (PMAY-U).

D: OBJECTIVE OF STUDY
The study has the sole objective of removing the defects under the Pradhan Mantri Awas Yojana
(Urban) (PMAY-U). The Scheme of the Pradhan Mantri Awas Yojana (Urban) (PMAY-U) is
dealt by the Ministry of Housing and Urban Poverty Alleviation, Government of India. The
Facility of Housing is basic necessity for every individual and Urban Poverty cannot be
alleviated without providing housing facility to economically weaker families and families
residing below the Poverty Line. The process of providing housing facility ought to be carried
out fast because depriving an individual of weaker section of the society form basic necessity of
life like housing is not desirable under any circumstance. The objective of the study is
determined from various statistical data and various Government reports which the researcher
has collected over a span of time and the researcher will analyze such reports with
commencement of the research work. The sole objective of the study as mentioned above is to be
achieved by a very systematic approach. The researcher in this case has relied upon the statement
of problem for developing the systematic approach to achieve the sole objective of the study. The
Researcher has dealt separately the various perspectives of the objective of study.

Those different perspectives of the objective of study based upon the Statement of Problem are
mentioned hereunder:

 to identify the importance of Prime Minister Awas Yojana (Urban)

 to establish the Scheme of Prime Minister Awas Yojana (Urban) is defective and unfair
using facts and data
  to describe the specific problems and defects in the Scheme of Prime Minister Awas
Yojana (Urban)

 to determine the process for eliminating the problems and defects in the Scheme of Prime
Minister Awas Yojana (Urban)

 to estimate the difficulties that may be witnessed while removing the defects in the
Scheme of Prime Minister Awas Yojana (Urban).

 to develop the strategy for making the Scheme of Prime Minister Awas Yojana (Urban)
fair and proper.

 to compare the scheme of Prime Minister Awas Yojana (Urban) with Rajiv Awas Yojana
which was introduced on 4th June, 2009.

 to analyze the statistical data that highlights the defects and problems in the Scheme of
Prime Minister Awas Yojana (Urban).

 to collect further information and knowledge regarding implementation of the process for
eliminating the problems and defects in the Scheme of Prime Minister Awas Yojana
(Urban)

The Researcher has studied all online Statistical Data available on finance in Housing Projects by
Private Sectors Banks, State Cooperative Banks and Scheduled Commercial Banks. The
Researcher has found out that National Housing Bank has major role to play in terms of
controlling financial support received from the Central Government in connection with the
Scheme of the Pradhan Mantri Awas Yojana (Urban) (PMAY-U) and the Statistical Report
available on the official web portal of the National Housing Bank shows financial disbursement
in Housing Project has not been very good in last three years after implementation of the Scheme
of the Pradhan Mantri Awas Yojana (Urban) (PMAY-U). It is therefore evident that the Home
Builders / Land Developers who have ventured into Public Private Partnership with the Central
Government for carrying out House Construction Work are not receiving adequate financial
support from the Central Government. The National Housing Bank functions under direct control
of the Reserve Bank of India. The Statistical Data available on the Official Website of the
National Housing Bank can be treated as prima facie evidence of the fact that the financial
support from the Central Government is not adequate in the House Construction Work carried
out under the Scheme of the Pradhan Mantri Awas Yojana (Urban) (PMAY-U).

A report submitted in Rajya Sabha on 24th July, 2017 by the Ministry of Housing and Urban
Poverty Alleviation, Government of India revealed that Construction of 1.31 lakhs Urban Houses
was sanctioned under the Scheme of Pradhan Mantri Awas Yojana (Urban) (PMAY-U) in the
State of Maharashtra and Rs. 2,023.22 Crore was sanctioned for this work in the year 2015. The
same report further revealed that 2726 Urban Houses were sanctioned in the Pune City itself
excluding the area under Pune Cantonment Board. The Ministry of Housing and Urban Poverty
Alleviation, Government of India submitted another report in Rajya Sabha on 17th July, 2017
and this report dated 17/07/2017 revealed that only Rs. 620.05 Crore was disbursed by the
Central Government till the month of June, 2017 for implementation of the Scheme of Pradhan
Mantri Awas Yojana (Urban) (PMAY-U) throughout the State of Maharashtra. The report dated
17/07/2017 further revealed that only 11,503 houses were constructed in the State of
Maharashtra with Rs. 620.05 Crore which was sanctioned by the Central Government. This
indicates that around Rs. 5.35 lakhs was spent for construction of one house. The Central
Government till date did not increase the amount of money which was sanctioned in the year
2015 for construction of 1.31 lakhs Urban Houses in the State of Maharashtra under the Scheme
of Pradhan Mantri Awas Yojana (Urban) (PMAY-U). An amount of Rs. 2,023.22 Crore is
not sufficient for construction of 1.31 lakhs urban houses. An estimated investment of at least Rs.
7,000 Crore is required for construction of 1.31 lakhs urban houses in the State of Maharashtra as
per the Statistical Data which was presented in the Rajya Sabha. The houses which are built
under financial assistance from Central Government as per Scheme of Prime Minister Awas
Yojana (Urban) has been categorized into four components namely: (1) In situ Slum
Development, (2) Credit Linked Subsidy, (3) Affordable Housing in partnership, (4) Ben Led
Construction.

It is observed that the people who are willing to have their own house in Pune City has mostly
preferred the Scheme of Affordable Housing in Partnership. The Central Government has
implemented the Scheme of Affordable Housing in Partnership under the Pradhan Mantri Awas
Yojana (Urban) through Public Private Partnership with different Land Developers and Home
Builders. It is therefore essential to make a critical review or a critical analysis of the Public
Private Partnership concept under the Scheme of the Pradhan Mantri Awas Yojana (Urban) for
safeguarding the interest of those citizens who will be getting their own house in Pune City from
the Scheme of Affordable Housing in Partnership. A critical review or a critical analysis of the
Public Private Partnership concept under the Scheme of the Pradhan Mantri Awas Yojana
(Urban) is also necessary so that the Land Developers and Home Builders who have built houses
in collaboration with the Central Government are not deprived of their requisite share of profit
for their work. The terms and conditions in the Public Private Partnership under the Scheme of
the Pradhan Mantri Awas Yojana (Urban) is deceiving in nature and the Researcher shall make a
critical analysis of those terms and conditions in the interest of those Land Developers and Home
Builders so that the Central Government do not get an opportunity for deceiving those Land
Developers and Home Builders. The terms and conditions in the Scheme of Prime Minister
Awas Yojana (Urban) relating to increment of the state wise sanctioned money for house
construction are not proper and also not genuinely in Public Interest. The terms and conditions in
the Scheme of Prime Minister Awas Yojana (Urban) relating to State wise Finance Disbursement
from Central Government for the purpose of house construction is also not proper. This type of
improper terms and conditions is considered to be responsible for slow progress in house
constructions which are done under the Scheme of Prime Minister Awas Yojana (Urban). It
appears prima facie to the Researcher that object of this Research Work will be accomplished
when critical review of every terms and conditions is taken into consideration and those terms
and conditions in the Scheme of Prime Minister Awas Yojana (Urban) are reframed based on the
critical review. The Researcher will collect Statistical Data and prepare a Chart after analysis of
the collected Statistical Data to find out the reason for slow progress in context of
implementation of the scheme. The Researcher will find out from the Home Builders who have
entered into Public Private Partnership with the Ministry of Housing and Urban Poverty
Alleviation, Government of India for implementation of the Scheme of the Pradhan Mantri Awas
Yojana (Urban) (PMAY-U) and construct houses in accordance to the Scheme of the Pradhan
Mantri Awas Yojana (Urban) (PMAY-U). The Researcher will generate Statistical Data after
making categorical study the grievance of those Home Builders and Land Developers who have
entered into Public Private Partnership with the Ministry of Housing and Urban Poverty
Alleviation, Government of India for implementation of the Scheme of the Pradhan Mantri Awas
Yojana (Urban) (PMAY-U). The Researcher will also generate Statistical Data after questioning
the Beneficiary of the Scheme of the Pradhan Mantri Awas Yojana (Urban) (PMAY-U) and will
prepare a chart on the number of application which has been processed and number of
application which is yet to be processed. The Researcher will put in the chart the time period
taken for the application to go through each stage of its process.

E: RESEARCH QUESTIONS AND HYPOTHESIS

1. Whether the Scheme of the Pradhan Mantri Awas Yojana (Urban) (PMAY-U) is fair,
reasonable, just and suitable for different categories of applicants who have applied for
Housing Facility under this Scheme?

2. Whether the Scheme of the Pradhan Mantri Awas Yojana (Urban) (PMAY-U) is fair,
reasonable, just and suitable for the Home Builders and Developers who have partnered
government in this Scheme?

3. Whether the Scheme of the Pradhan Mantri Awas Yojana (Urban) (PMAY-U) is actually
made for Public Benefit and Public Interest?

The above mentioned three questions will ultimately lead to framing the hypothesis of my
research work and finding answer to this question is the motive of my research work. The
hypothesis of my Research Work is derived from preliminary feedback and opinion from the
Home Builders and Land Developers who are associated with Pradhan Mantri Awas Yojana
(Urban) (PMAY-U) and also from individuals who have applied for Housing Facility under
Pradhan Mantri Awas Yojana (Urban) (PMAY-U).

It is hypothesised that:

1. The provisions of the Scheme of the Pradhan Mantri Awas Yojana (Urban) (PMAY- U) and
also its implementation has been questioned for many reasons so a reality check and assessment
of the scheme is needed to check its fairness and suitability for individuals who have applied for
Housing Facility under the Scheme.

2. The provisions of the Scheme of the Pradhan Mantri Awas Yojana (Urban) (PMAY-U) and
also its implementation has been questioned for many reasons so a reality check and assessment
of the scheme is needed to check its fairness and suitability for the Home Builders and
Developers who have ventured into Private Public Partnership with the Ministry of Housing and
Urban Poverty Alleviation, Government of India and the Urban Local Body for implementation
of the Scheme of the Pradhan Mantri Awas Yojana (Urban) (PMAY-U).

3. The provisions of the Scheme of the Pradhan Mantri Awas Yojana (Urban) (PMAY-U) and
also its implementation has been questioned for many reasons so a reality check and assessment
of the scheme is needed to ensure that the scheme is actually being made for Public Interest and
Public Benefit.

F: RESEARCH METHODOLOGY
 Method of Research ---- critical

This research is based on criticisms received from individual persons who have applied under
this Scheme to get their own house. This research is also based on the criticism received from the
Home Builders and Land Developers who have involved themselves in the Public Private
Partnership for implementing the Scheme of the Prime Minister Awas Yojana (Urban).

 Research Design ---- explorative

The Researcher in this particular research is making attempt to explore all possible problems and
defects in the Scheme of the Prime Minister Awas Yojana (Urban) and also making exploration
to find out best possible solution to the defects which are present in the Scheme of the Prime
Minister Awas Yojana (Urban).

 Type of Sample --- only probable samples

The Researcher will rely only upon probable samples for this Research. There is no scope for the
researcher to rely on non – probable samples in this Research and there shall be no scope for any
sort of presumptions or assumption regarding the samples which will be used by the Researcher.
The samples which will be used in the research are definite, identifiable and distinguishable. The
samples are supported by proper documentation for adjudging its authenticity.

 Size of Sample --- total respondents = 27 / stake holder = 01

1. respondents who are Land Developers / Home Builders = 15

2. respondents who are Beneficiary / Home Buyers in the Scheme = 12

 Description of Study Area --- Pune City / areas under Pune Municipal Corporation
The different areas under the territorial limits of the Pune Municipal Corporation and considered
as part of Pune City Taluka or Haveli Taluka of the Pune District.

G: SCOPE OF RESEARCH:

Discovering the primary problems associated with the Scheme of the Pradhan Mantri Awas
Yojana (Urban) (PMAY-U) as per the grievances and feedback from the applicants who have
applied for houses to be constructed under the Pradhan Mantri Awas Yojana (Urban) (PMAY-U)
and also discovering the problems faced by the Home Builders and Land Developers who are
associated with the house construction work under Scheme of the Pradhan Mantri Awas
Yojana (Urban) (PMAY-U). For the purpose of this scheme, the economically weaker section
(EWS) has been defined as the people having income below 3 lacs per annum and Low income
Group (LIG) as the people having income between Rs. 3 lacs to Rs. 6 lacs per annum. However,
the definition can change depending upon the particular state government and in consultation
with the central government. One important point to take a note here is that one should not own a
pucca house in his own name or in the name of his family members in any part of the country to
avail this scheme. The term “family” in this context refers to husband, wife and unmarried
children. There are many benefits and advantages of the scheme which are indicated below.

H: LIMITATION OF RESEARCH:

The main factor which is considered as limitation in this research is: time
The researcher might face problems in making time adjustment with the Respondents for taking
interviews of the Respondents. It will be difficult for the Researcher to approach the
Respondents at such specific time when it is convenient and suitable for those Respondents give
time for an interview or sit for an interview with the Researcher.
I: DATA COLLECTION:
 Method of Data Collection --- personal interview and questionnaire for collection
of primary data and making use of the Right to Information Act for collection of
Secondary Data.

 Data Collection Instruments --- questionnaire, personal interview and using the
provisions of the Right to Information Act, 2005 for inspection of certain Documents and
Statistical Data from the offices of different Government Department and different
offices under Pune Municipal Corporation which are involved in implementing the
Scheme of the Pradhan Mantri Awas Yojana (Urban).

 Respondent Contact Method --- personal visit, whatsapp and telephone

J: ANALYSIS AND INTERPRETATION OF DATA

There has been various type of data analysis in this Research and interpretation of data in this
research using various criteria and parameters. Please refer the Chapter – VII of this Dissertation
for further details regarding analysis and interpretation of data.
CHAPTER – II
ORIGIN OF GOVERNMENT
HOUSING SCHEMES IN
INDIA AND OVERVIEW OF
THE PROCESS FOR
OBTAINING BENEFITS OF
SUCH HOUSING SCHEMES
A: PRELIMINARY:
This chapter introduces to the concept of housing for Weaker Section of the Indian Society. The
concept of housing for Weaker Section of the Indian Society is not a very old concept. The
concept emerged in the 21st century. The concept of housing for weaker section of the society is
closely associated with criteria for deciding categories of persons who are entitled to obtain
benefits of such Government housing scheme. This chapter is dealing with origin of Government
Housing Schemes for Weaker Sections of the Society and also dealing with the process for
obtaining benefits of such Government Schemes.

B: ORIGIN OF HOUSING SCHEMES FOR THE WEAKER

SECTION OF THE SOCIETY:
The concept of housing for weaker section of the society was never given importance in the
British India. There was no concept of housing societies in British India. There were no multi
storied buildings in British India. The weaker section of the society during British India resided
in slums. Sometimes they resided as tenants in big houses and each tenant was entitled to
possession of one or two small rooms in the house. There were at least 30 tenants in the house.
They had common bathroom and toilet. They resided in a very unsuitable condition. The land
lord or the premise owner intervened when it came to collection of rent. The land lords hardly
undertook repair work. They were never concerned about safety of the tenants. There used to be
frequent fights amongst the tenants. There was so high demand for rented properties that the
premise owner indulged into exploiting tenants without being concerned about the loss of
reputation to their own business.

The housing societies and multi storied buildings with concept of flats came up during the period
in between 1955 - 1960 and this concept become highly popular in cities like Bombay and Poona
from the year 1965. The big bungalows which were there in the cities like Poona and Bombay at
that time became miserable for residing. It was very difficult financially for the owners to
maintain such big bungalows and carry out regular repair work every time. Those bungalows
were constructed during the earlier part of the British Rule and the condition of those bungalows
became very bad after independence. The businesses of Home Builders flourished in big cities
like Poona and Bombay from the year 1965. These Home Builders entered into joint venture
development agreements with the land owners and constructed a new multi storied buildings or
rather two or more multi storied buildings upon the same land in place of that one bungalow.
When a multi storied building or more than one multi storied buildings are constructed after
replacing an old bungalow then automatically it accommodates more families and so the demand
of rented residential properties or rented houses decreased to a certain extent.
The concept of home loans emerged in the decade of 1970s when Indira Gandhi was Prime
Minister of India. The concept of home loans came up with the creation of Housing
Development Finance Corporation of India and real estate industry bloomed in India with
formation of National Housing Bank.

The census survey report of 1961 revealed that 68% of the Urban Population resided in rented
homes in India and the census survey report of 2001 that only 27% of the Urban Population
resided in rented homes. The UPA led Government which was formed in 2004 under the Prime
Ministership of Dr. Manmohan Singh launched Rajiv Awas Yojana on 4 th June, 2009. The
Government at that time was of the opinion that there was only 27% of the urban population in
rented houses so launching a Housing Scheme for weaker section of the society in urban areas
would bring down that rate further more.

The said Rajiv Awas Yojana which was launched in 2009 was not successful and the census
survey report of 2011 revealed that 31.4 % of the Urban Population resided in rented homes. The
experts in real estate industry were of the opinion that policy guidelines of Rajiv Awas Yojana
were not at all good and that was responsible for its failure.

The present NDA Government under Prime Ministership of Shri. Narendra Modi launched
Pradhan Mantri Awas Yojana (Urban) in the year 2015 after reframing the policy guidelines of
Rajiv Awas Yojana.

C: OVERVIEW OF THE PROCESS FOR OBTAINING

BENEFITS OF SUCH HOUSING SCHEMES:
The process of obtaining benefits of Affordable Housing in Partnership and also obtaining
benefit of Beneficiary Led Construction is not a difficult process if the process is followed
carefully step-by-step. The Urban Local Body representative or any other person helping the
intended beneficiary to go through the process need to have certain basic knowledge regarding
housing components such as “Affordable Housing in Partnership” and “Beneficiary Led
Construction” which are available under the Scheme of Pradhan Mantri Awas Yojana (Urban).

The process of obtaining benefits of “Affordable Housing in Partnership” and “Beneficiary Led
Construction” in Pradhan Mantri Awas Yojana (urban) is similar to “Rajiv Awas Yojana” which
was launched in June, 2009.
The criterion for deciding whether a family qualifies to become part of the Scheme for
Economically Weaker Section is annual family income. If the annual family income is less than
rupees three lakhs per annum then the family shall be qualified as part of the Economically
Weaker Section of the Society and shall be entitled to benefit of Beneficiary Led Construction in
case they are already owners of Kachaa House and Affordable Housing in Partnership in case
they are owners of any house. The houses which families belonging from Economically Weaker
Section of the Society will get in Beneficiary Led Construction and Affordable Housing in
Partnership will have covered area ranging between 250 square feet to 500 square feet.
The format of online application through citizen assessment section at the official Website of
Pradhan Mantri Awas Yojana (urban) is similar to the prescribed format for manual application.
The prescribed manual application filling up and initial processing of the same is done by the
Urban Local Body Executives.
The prescribed format for manual application is provided in Annexure Part of the Scheme
Guidelines which were released in the month of March, 2016 and is labeled as FORMAT – B
under the Scheme Guidelines. The Local Urban Body is allowed to create and develop its own
prescribed format relying upon the format which was annexed to the aforesaid Scheme
Guidelines. It is sometimes necessary for the Local Urban Body to develop its own format
depending on the housing situation within the areas of such Local Urban Body. The format
which Urban Local Body may develop should be good enough to take note of all information
which otherwise needed in the application form available as annexure to the Scheme Guidelines.
The prescribed format for manual application which is marked as FORMAT – B in the Scheme
Guidelines and also the Scheme Guidelines itself have given special recognition to Persons with
Disability, widow and single woman. These special categories of people are to given priority and
first preference in home allocation. It is indeed good work done by Government in giving
priority and first preference to single woman because it becomes very difficult for single woman
to get rented houses in a new city where she has to stay for her profession and livelihood.
The prescribed format for manual application mainly requires number of family members with
their respective ages and gender. The prescribed format for manual application also requires total
number of rooms in existing dwelling unit and total carpet area of the existing dwelling units.
These details will ensure that dwelling unit with greater carpet area is made available to the
beneficiary of the Scheme. The income of head of the family and source of his income is also
analyzed in the prescribed format for the manual application to ensure that the beneficiary is in
easy position to pay monthly installment for paying off the money that is provided to such
Beneficiary under Central Assistance. The household monthly income is also taken into account
so to determine the standard of living and to determine the facilities in the house for meeting
their standard of living.
The Bank Details of the Beneficiary like Savings Bank Account Number along with Name of
Bank and IFSC Code of such Bank is taken down to track his financial status and also to check
whether the beneficiary is getting money from any other Government Scheme or not.
The rest other details are relating to basic information of the Beneficiary for purpose of
identification of the beneficiary and for generating statistical reports on beneficiaries.
The religion of the beneficiary is also taken down in the Application Form. The Government
should not take note of the religion as per provision of Article 14 and Article 25 of the Indian
Constitution but it has been done in this case because the Government wants to ensure that flats
or dwelling units in one particular building have people from only one religion so that religious
practice of one dwelling unit do not become problem for people residing in the very next flat or
very next dwelling unit.
The process which an intended beneficiary undergoes for being recognized as beneficiary in the
Scheme so that benefits of the Scheme are provided is simple and designed in a very systematic
and scientific manner. The Researcher is not finding anything for criticism as far as the process
of becoming a Beneficiary in this Scheme is concerned.
CHAPTER – III
CRITICAL ANALYSIS OF
SCHEME GUIDELINES
ASSOCITATED WITH

PRADHAN MANTRI
AWAS YOJANA
(URBAN)
A: PRELIMINARY:
The first set of Scheme Guidelines of Pradhan Mantri Awas Yojana (Urban) was released in the
month of March, 2016 by the Ministry of Housing and Urban Poverty Alleviation. The Scheme
Guidelines discussed in detail about implantation methodology through four different
components namely:

a) In situ Slum Development9

b) Affordable Housing through Credit Linked Subsidy10
c) Affordable Housing in Partnership11
d) Subsidy for beneficiary-led individual house construction or enhancement 12

This Research Work has exclusively focused on the concept of Affordable Housing in
Partnership under the Scheme of Pradhan Mantri Awas Yojana (Urban). The Affordable Housing
in Partnership is achieved through Public Private Partnership Model.

The Ministry of Housing and Urban Poverty Alleviation issued Guidelines to regulate Public
Private Partnership Models for Affordable Housing. Such guidelines were issued in the month of
September, 2017. It is observed that Guidelines to regulate Public Private Partnership Models
for Affordable Housing were not in existence before September, 2017 but the Central
Government had applied Public Private Partnership in the Scheme of Pradhan Mantri Awas
Yojana (urban) prior to September, 2017 and the Central Government has already faced immense
criticism for the same from persons who are legal experts in Real Estate Industry.

The Public Private Partnership (PPP or 3P) is a commercial legal relationship defined by
the Government of India in 2011 as "an arrangement between a government / statutory entity /

9
“In-situ” slum rehabilitation using land as a resource with private participation for providing houses to eligible
slum dwellers is an important component of the “Pradhan Mantri Awas Yojana – Housing for All (Urban)” mission.
This approach aims to leverage the locked potential of land under slums to provide houses to the eligible slum
dwellers bringing them into the formal urban settlement.
10
The Mission, in order to expand institutional credit flow to the housing needs of urban poor will implement credit
linked subsidy component as a demand side intervention. Credit linked subsidy will be provided on home loans
taken by eligible urban poor (EWS/LIG) for acquisition, construction of house.
11
The third component of the mission is affordable housing in partnership. This is a supply side intervention. The
Mission will provide financial assistance to EWS houses being built with different partnerships by
States/UTs/Cities.
12
The fourth component of the mission is assistance to individual eligible families belonging to EWS categories to
either construct new houses or enhance existing houses on their own to cover the beneficiaries, who are not able to
take advantage of other components of the mission. Such families may avail of central assistance of Rs. 1.50 lakhs
for construction of new houses or for enhancement of existing houses under the mission.
government owned entity on one side and a private sector entity on the other, for the provision of
public assets and/or public services, through investments being made and/or management being
undertaken by the private sector entity, for a specified period of time, where there is well defined
allocation of risk between the private sector and the public entity and the private entity receives
performance linked payments that conform (or are benchmarked) to specified and pre-
determined performance standards, measurable by the public entity or its representative".13

The concept of Public Private Partnership finds its origin in Indian Partnership Act, 1932. The
Public Private Partnership has its roots in the concept of partnership for a particular venture. The
concept of partnership for a particular venture is based on the principle that partnership between
the parties exists till the venture is accomplished. There may be partnership between caterer and
decorator in the venture for arranging of annual party of a corporate house. The partnership
comes to an end after annual party of the corporate house comes to an end. The same concept is
applicable in Public Private Partnership and the Public Private Partnership will come to an end
when the Home Builder / Land Developer completes construction of dwelling units or flats in the
housing project which was assigned to that particular Home Builder / Land Developer by the
Central Government through the Urban Local Body.

The Home Builders / Land Developers have to put in lots of efforts, face hardship and have to
undergo lot of legal documentation work in the tender process for being private partner in the
Public Private Partnership. The Home Builder / Land Developer in return excepts that the
Central Government would respect the agreement of Public Private Partnership and will fulfill
the commitment made by the Central Government in the Memorandum of Public Private
Partnership. The real scenario was very different rather. The Central Government and the Urban
Local Body never bothered to abide by the Memorandum of Public Private Partnership.

B: OBSERVATIONS MADE DURING CRITICAL ANALYSIS

OF SCHEME GUIDELINES:
The Researcher herein has made review of the Scheme Guidelines and also made critical analysis
of the Scheme Guidelines which were issued in March, 2016. The Researcher has also made
critical analysis of the guidelines issued in September 2017 for regulating the Public Private
Partnership Models in Affordable Housing. The Researcher has made few observations during
Critical Analysis of the Scheme Guidelines and the same has been discussed in detail hereunder
by the Researcher:

1. It is observed that the Scheme of Pradhan Mantri Awas Yojana (Urban) was announced
in the month of June, 2015 and the Scheme Guidelines were issued in March, 2016. It
13
https://en.wikipedia.org/wiki/Public%E2%80%93private_partnerships_in_India
 means that there was no planning of this famous Government Scheme at the time of its
announcement. The planning of the Scheme and making of the Scheme Guidelines were
done after announcement of the Scheme. It was very unjust and unfair on the part of the
Central Government to reveal or announce a Government Scheme without making the
Scheme Guidelines ready. The Scheme Guidelines ought to have been ready at the time
of announcing the Scheme. There is no point in announcing the Scheme without releasing
the scheme guidelines at the time of making announcement of the Scheme. The people of
India were given a brief description of the Scheme during its announcement in June,
2015. The brief description revealed only half of propaganda of the actual Scheme which
is not at all desirable under any circumstances. The Central Government has made a very
inappropriate move by announcing the scheme without having the Scheme Guidelines
ready and the Researcher strongly criticizes the decision of the Central Government on
releasing the Scheme without disclosing the Scheme Guidelines at initial stage.

2. It is also observed that Regulatory Guidelines regarding the Public Private Partnership
Models in Affordable Housing were issued in September, 2017 but tenders were invited
for Public Private Partnership before the month of September, 2017. The Central
Government and Ministry of Housing and Urban Poverty Alleviation took a very unfair
and unjust decision by inviting tenders from Home Builders / Land Developers for Public
Private Partnership Model in Affordable Housing without framing Regulatory Guidelines
of the same. The Ministry of Housing and Urban Poverty Alleviation imposed Regulatory
Guidelines upon the Home Builders / Land Developers after September, 2017 and these
Home Builders / Land Developers had no clue about the aforesaid Regulatory Guidelines
when the accepted invitation to the Tenders for Public Private Partnership Models in
Affordable Housing.14 The Central Government failed to protect the interest of the Home
Builders / Land Developers who have associated themselves before September, 2017 in
the Public Private Partnership Models for Affordable Housing. Those Home Builders /
Land Developers have strongly criticized the Central Government and also Ministry of
Housing and Urban Poverty Alleviation for unwarranted imposition of the aforesaid
Regulatory Guidelines.15

3. It is observed by the Researcher that the Scheme Guidelines which were issued in March,
2016 were drafted in a manner which involved usage of lot of technical terms and
meaning of those technical terms were not clearly enumerated and not clearly explained.
The Scheme Guidelines were made in a manner which could be comprehended and
interpreted by people like real industry experts, real estate brokers, researchers in the
field of real estate and property dealers but these categories of people are not the ones
who are booking homes under Scheme of Prime Minister Awas Yojana (urban). It is

14
www.proptiger.com
15
www.99acres.com
 common persons who are booking homes in the Scheme of Prime Minister Awas Yojana
(urban) and the common persons have no knowledge regarding interpretation and
comprehension of technical terms which are exclusively used in the domain of Real
Estate Industry. The Scheme Guidelines ought to have prepared in a manner which will
be actually suitable for common person who have booked homes under the Scheme of
Pradhan Mantri Awas Yojana(Urban).16

4. It is further observed that the Scheme Guidelines which were issued in March 2016 were
drafted in English Language. The Ministry of Housing and Urban Poverty Alleviation
prepared the original Scheme Guidelines in English language and the said Ministry
subsequently issued Hindi translations of the same Scheme Guidelines. The Ministry of
Housing and Urban Poverty Alleviation did not take initiative to issue Scheme Guidelines
in 22 regional languages which are recognized by the Constitution of India. The
respective State Governments took the initiative of translating the Scheme Guidelines in
regional languages and in official language of the respective States. The Government of
Maharashtra did make translation of the Scheme Guidelines in Marathi language but the
translation work was not good enough and in fact many clauses of the Scheme Guidelines
were wrongly represented when translated into Marathi language. The persons of Pune
City who have booked homes in the Pune City under the Scheme of Pradhan Mantri
Awas Yojana (Urban) are mostly familiar to Marathi language and are generally well
versed in Marathi language. These people are mainly referring the Marathi translations of
the Scheme Guidelines and are getting misinformed and misled about the Scheme
Guidelines. The subsequent amendments in the Scheme Guidelines do not immediately
come out in Marathi language and that is causing problems for the people who are
depending on the Marathi translations of the Scheme Guidelines. The Marathi version of
the Scheme Guidelines is not at all suitable for the above stated reasons and it is
extremely necessary to make retranslations of those Scheme Guidelines again from the
original English version of the Scheme Guidelines.

C: OPINIONS FORMED AFTER CRITICAL ANALYSIS OF

SCHEME GUIDELINES:
The Scheme of Pradhan Mantri Awas Yojana (urban) will not qualify as an actual public
benefiting Government Scheme unless the scheme guidelines are comprehended and are
correctly interpreted by public at large without taking help from any lawyer or any real estate
expert. The Researcher believes that inserting interpretation clause or definition clause in
Scheme Guidelines of March, 2016 will resolve the issue regarding interpretation of technical
terms and legal terms which are exclusively used in the domain of Real Estate Industry.

16
www.insightsofindia.com
 The opinions from lawyers and real estate experts posted on the official facebook page of
Pradhan Mantri Awas Yojana (Urban) and also opinions from lawyers and real estate experts
available in twitter with official twitter handle of Pradhan Mantri Awas Yojana (Urban) are to
be annexed with the redraft of the Scheme Guidelines. An independent committee is to be
formed for deciding the social media opinions which are to be included in the annexure part of
the redrafted Scheme guidelines.17

The redrafted Scheme Guidelines should also explicitly mention the different cons of the
Scheme of Pradhan Mantri Awas Yojana (urban). The redrafted Scheme guidelines should
disclose the cons in the same manner in which statutory warning is mentioned on a cigarette
packet. The Real Estate Brokers often indulge into practice of providing untrue information
which is nowhere mentioned in the Scheme Guidelines. Such practices are carried out by the
Real Estate Brokers for their own personal advantages. There should be announcement and
public interest advertisement to make people aware about the problems faced when they rely
upon Real Estate Brokers for understanding the Scheme Guidelines. A comprehensive public
awareness campaign is to be carried out for the same.

The mediators at the Local Urban Body who are handling disputes arising out of Scheme
Guidelines and also responsible for making interpretation of Scheme Guidelines for settlement
of disputes should play a major role in conducting frequent seminars for General public at the
office of the Local Urban Body. Such seminars are to be conducted for guiding the general
public regarding interpretation of different clauses of the Scheme Guidelines. There should
advertisement in all local newspapers regarding such seminars and the advertisements are to be
published two or three days before the actual seminar. The Ministry of Housing and Urban
Poverty Alleviation should issue notifications to make it compulsory for the Urban Local Body
to organize such seminars.

The Scheme Guidelines is very important document. The Scheme Guidelines must explicitly
cover all different aspects of all four types of housing components under the Scheme of Pradhan
Mantri Awas Yojana (urban). The Scheme Guidelines are silent on one or two aspects of each
type of housing components under the Pradhan Mantri Awas Yojana (urban). That is not at all
desirable under any circumstance. The Ministry of Housing and Urban Poverty Alleviation must
ensure all different aspects of all four types of housing components are duly mentioned in the
Scheme Guidelines.

17
http://www.suvaas.com/blog/tag/pradhan-mantri-awas-yojana/
CHAPTER - IV

A GENERAL STUDY OF THE DIFFERENT

FACTORS RESPONSIBLE FOR DISMISSAL OR
REJECTION OF APPLICATIONS MADE UNDER
THE SCHEME FOR AFFORDABLE HOSUING
A: PRELIMINARY:

The Scheme of Prime Minister Awas Yojana (Urban) is powered by Digital India Movement. It
is very much important to mention in this context that Digital India is a campaign which was
launched by our Prime Minister Shri. Narendra Modi on 1 st July, 2015 and this campaign
primarily concerned with electronic documentation and digital documentation processes. The
basic aim of the Digital India Movement was to make documentation work for a Government
Scheme paperless. The Ministry of Electronics and Communication is striving to ensure that the
documentation work in the Scheme of Pradhan Mantri Awas Yojana (Urban) is made paperless.
The process of submission of application from Home Buyers is made paperless. Those who are
visiting office of the Urban Local Body for making applications for buying home under the
Scheme are provided with hard copies of the prescribed application form but the data which are
mentioned by the home buyer in that hard copy of the prescribed application form are entered
through internet in the web server of Ministry of Housing and Urban Poverty Alleviation and
thereafter those hard copies of the applications are destroyed. The Home Buyer who have used
hard copies of prescribed application form for making the application are given print out of the
application which was submitted online in electronic mode to the Ministry of Housing and Urban
Poverty Alleviation. A print out of the electronic acknowledgement which appears on the
internet browser after successful submission of online application is given to the home buyer.

If home buyers directly approaches office of the Urban Local Body for submission of
applications which are made under the Scheme of Pradhan Mantri Awas Yojana (Urban) then the
officials and Public Servants at the Office of the Scheme of Pradhan Mantri Awas Yojana
(Urban) tries to convince the home buyers to visit Maha E-sewa Kendra offices or Cyber Cafes
for making the application because these officials at the offices of Urban Local Body are
reluctant to enter data from hard copy of the prescribed forms which home buyers physically
submits at the office of the Urban Local Body.

B: REASONS FOR MAKING ELECTRONIC OR DIGITAL

APPLICATIONS COMPULSORY UNDER THE SCHEME:
The decision of Ministry of Housing and Urban poverty Alleviation to make Electronic or
Digital Applications compulsory under the Scheme of Pradhan Mantri Awas Yojan (Urban) is
appreciated by lawyers, real estate consultants, home builders, structural and civil engineers and
also by chartered accountants who are involved in doing audit work in Real Estate Industries.
The aforesaid groups of persons are of the opinion that scrutiny and processing of applications
under the Scheme of Pradhan Mantri Awas Yojana (Urban) have become very easy because of
implementation of the concept of Electronic or Digital Applications. There is nothing to criticize
regarding the same. There are little problems which are seen in Digital or Electronic
Applications submitted online by Home Buyers but those problems can be avoided by adopting
very small measures.

There are many reasons for implementing the concept of Electronic or Digital Applications
under the Scheme of Pradhan Mantri Awas Yojana (Urban) like:

 The processes of making scrutiny of the electronic applications have become very easy.
There is not much effort needed in the scrutiny. The web server of Ministry of Housing
and Urban Poverty Alleviation would not allow online submission of applications if the
online application form is not filled up correctly or if the applicant makes error in filling
up online application form.

 The supportive documents in digital application are scanned and submitted with the
online applications so authenticity of those supportive documents can be easily checked
by the Ministry of Housing and Urban Poverty Alleviation by forwarding scanned copy
of those documents through e-mail to the Department which has issued it. The process
used by Ministry of Housing and Urban Poverty Alleviation for sending e-mails is not
manual. There is some software which automatically generates the e-mail and attaches
respective scanned documents with the e-mail and sends that e-mail message with
attachment to the concerned authority or concerned department. The scrutiny of digital
applications under the Scheme of Pradhan Mantri Awas Yojana (Urban) requires very
less man power.

 The implementation of the concept of Electronic or Digital Applications under the

Scheme of Pradhan Mantri Awas Yojana (Urban) has brought about transparency and
every stage of process of every application is transparent and can be easily seen easily
from the Official Website of the Ministry of Housing and Urban poverty Alleviation. The
data which is revealed on the website of the Ministry of Housing and Urban Poverty
Alleviation regarding stages of processing applications are electronic record within the
meaning of Section 2 of the Information Technology Act, 2000 and so irregularity in the
processing of the digital application can easily be detected by the Home Buyers and
action can be initiated by the Home Buyers. The Ministry of Housing and Urban Poverty
Alleviation do not take the risk of making irregularities in the processing digital
applications because it fears instant action from Home Buyers.

 The implementation of the concept of Electronic or Digital Applications under the

Scheme of Pradhan Mantri Awas Yojana (Urban) has another big benefit. The Home
Builders / Land Developers who are working in a Housing Project under Pradhan Mantri
Awas Yojana (Urban) can easily check the processing status of the applications from the
persons who have booked homes in that housing project and carry out the construction
work accordingly.
C: OPINION REGARDING GROUNDS FOR DISMISSAL OF
ELECTRONIC OR DIGITAL APPLICATIONS:
The maximum number of applications which are properly submitted online are approved and
allowed. There have been very few instances of rejection of applications. There are very less
number of applications which are rejected and it is mainly because of the fact of providing false
statements in the application or for submission of improper documents in the applications.

There are few applications which are filled up by Maha E-sewa Kendra offices or cyber cafes
which are filled with wrong information or incorrect information. The cyber café owners and
Maha E-sewa Kendra offices sometimes find that some of the Home Buyers are not entitled to
get homes under the Scheme of Pradhan Mantri Awas Yojana (urban) yet those cyber café
owners and Maha E-sewa Kendra Offices improvises some incorrect details, incorrect data and
submits applications on behalf of the Home Buyers with some incorrect details and incorrect
data. This practice is mainly done to earn some money from Home Buyers for successful
submission of online applications.

A scanner and printer machine is mandatory for making online application under the Scheme of
Pradhan Mantri Awas Yojana (Urban) and so most of the Home Buyers have to depend upon
cyber cafes and Maha E-sewa Kendra for submission of online applications under the Scheme.
The correctness of data and details entered in the online application form remains in the hand of
the cyber café owner or the person who is in charge of the Maha E-sewa Kendra office. A
mistake on part of the cyber café owner or the person running the Maha E-sewa Kendra can
cause huge suffering to the person who is intending to buy home under the Scheme of Pradhan
Mantri Awas Yojana (urban). The cyber cafés and Maha E-sewa Kendra have to be very careful
in their work. The Researcher is of the opinion that the Urban Local Body officials should visit
cyber cafes and Maha E-sewa Kendra offices regularly and do the work of distribution of
pamphlets to make them careful while they do the work of filling online applications of Home
Buyers on the website of the Pradhan Mantri Awas Yojana (urban). The use of scanner machines
which is mandatory for making applications under the Scheme can be substituted by use of cam
scanner app on android smart phones.

The college students studying Information Technology Sciences or Computer Sciences should be
given activity under National Social Service Scheme to assist home buyers fill up online
applications under the Scheme of Pradhan Mantri Awas Yojana (Urban). This activity can be
easily done by the students using computer facilities which are provided by the colleges. The
college students in general are more inclined towards doing social work and they will sincerely
do the work of filling online application forms. The students will not fill incorrect details or
incorrect data like cyber café owners.
The Applications made by Home Buyers under the Scheme of Pradhan Mantri Awas Yojana
(urban) are also rejected because the Home Buyers fail to make compliance of certain
requirements which are mandatory in some cases after submission of the applications. The Home
Buyers must be clearly informed about such compliances before submission of the applications
so that the Home Buyers have the opportunity of backing out before submission of the
applications.

The Local Urban Body should make phone calls to the Home Buyers and request the Home
Buyers to visit the office of the Urban Local Body before rejecting their applications for booking
homes. The Local Urban Body should have discussion with the Home Buyers who have
presented improper and unfit applications and explain them the different ways by which they can
prevent rejection of such applications.
CHAPTER – V
CRITICAL ANALYSIS
OF THE CONCEPT:

“AFFORADABLE
HOUSING IN
PARTNERSHIP”
A: PRELIMINARY:
This Critical Analysis is based on the Empirical Study which is more fully discussed in Chapter -
VII of this Dissertation.

This Critical Analysis is made after analyzing different perspectives of the answer which have
come up during empirical study through different set of Questionnaires.

The Critical Analysis of the Public Private Partnership Model with Land Developer / Home
Builder is done in this chapter and the Researcher have specifically made one Questionnaire for
understanding issues in the Public Private Partnership between the Central Government and the
Home Builders associated in the Prime Minister Awas Yojana (Urban). The said Questionnaire is
discussed in detail under Chapter - VII but it is necessary to take reference of few questions and
answers from that Questionnaire for doing relevant critical analysis under this chapter.

B: INTROSPECTION OF THE DIFFERENT FACTORS

INVOVLED IN CRITICAL ANALYIS OF THE CONCEPT
“AFFORDABLE HOUSING IN PARTNERSHIP”:
The Researcher came across various factors when carrying out the Research on different factors
involved in the process of making Critical Analysis on the concept “Affordable Housing in
Partnership” and the Researcher discusses those factors here under:

a) The Home Builders / Land Developers had lot of expectations at the time of entering into
Public Private Partnership with the Government in the Scheme of Prime Minister Awas
Yojana (Urban).18 The growth in Real Estate industry is not always certain and
consistent. The businesses of Home Builders / Land Developers are not always stable
because Real Estate industry functions upon black money which is circulating in the
economy. The Home Builders / Land Developers always search for stability in their
businesses and the Real Estate Industry Experts believe that Government took undue
advantage of the Home Builders / Land Developers and assured them stability and fixed
quantum of income in every financial quarter. The Home Builders / Land Developers fell
into the trap of the Government and entered into Public Private Model of Partnership with
the Central Government for carrying out construction of Dwelling Units under the
Scheme of Pradhan Mantri Awas Yojana (urban).19
18
Scheme Prospectus titled “Public Private Partnership Models for Affordable Housing” issued by Ministry of
Housing and Urban Affairs, Government of India in the month of September 2017.
19
The fundamental strategy underlying Public Private Partnerships as an implementation strategy for affordable
housing is to combine the strengths of the private sector with those of the public sector in order to overcome
challenges faced by affordable housing and to achieve superior outcomes. However, the success of PPP as a strategy
will depend critically on designing PPP structures that make an appropriate allocation of risks, responsibilities,
rewards and penances, and create the incentives for value creation.
 b) It is observed that Home Builders / Land Developers who have entered into Public
Private Model of Partnership with the Central Government for carrying out construction
of Dwelling Units under the Scheme of Pradhan Mantri Awas Yojana (urban) have
neither got stability nor did they get assured fixed quantum of income every month. The
businesses of Home Builders / Land Developers suffered in general after demonization of
currency notes of Rs. 500/- and Rs. 1000/- by the Central Government on 8th November,
2016. It was then expected that the Home Builders / Land Developers who have entered
into Public Private Model of Partnership with the Central Government for carrying out
construction of Dwelling Units under the Scheme of Pradhan Mantri Awas Yojana
(urban) would not suffer so heavy amount of losses under the demonization impact. The
reality was rather very different because funds disbursal rate post demonetization became
extremely low in respect of the housing projects under the Prime Minister Awas Yojana
(Urban).20

c) It is observed that the banks received huge amounts of cash after demonetization on 8 th
November, 2016. The Government claimed that huge amount of money which was not
very much in circulation and certainly had not been part of the banking system for a long
time finally came back to the banks. The demonetization process led to accumulation of
huge amount of money in the banking system. The Government was in a much easier
position after demonetization as far as disbursal of funds for various Schemes are
concerned. The Government yet did not bother to release funds or rather disburse funds
for construction work in Dwelling Units under the Scheme of Prime Minister Awas
Yojana (Urban). The Government actually lost out a very good opportunity of making the
Scheme of Pradhan Mantri Awas Yojana (urban) a big success.

d) It is observed that the Government failed to realize that depriving the Home Builders /
Land Developers of their due share of money which they are entitled to receive from the
Government is not only causing problems for the Home Builders / Land Developers but
also causing unwanted stoppage in the functioning of the Scheme of Pradhan Mantri
Awas Yojana (Urban).21 The failure on part of the Government to supply sanctioned
funds to the Home Builders / Land Developers is directly responsible for half constructed
buildings at various project site locations covered under the Scheme of Prime Minister
Awas Yojana (Urban). 22

20
https://scroll.in/article/895036/can-pradhan-mantri-awas-yojana-really-solve-urban-indias-housing-crisis
21
https://www.dailypioneer.com/2018/page1/govt-misses-pm-awas-yojna-target-by-40-.html
22
https://www.downtoearth.org.in/news/governance/truth-about-pm-s-housing-for-all-scheme-it-is-far-off-target-
56713
 e) It is observed that the Government failed to realize that the Home Builders / Land
Developers selected for Dwelling House Construction do not have huge amount of
business capital. The Government also failed to realize that the disbursement of the
sanctioned funds will be mainly utilized in Construction Work and a mere small
proportion of that money will be profit of that particular Home Builder / Land Developer.

The Researcher had earlier designed few questions and collected answers to those questions from
the Home Builders / Land Developers who were constructing Dwelling Units under the Pradhan
Mantri Awas Yojana (Urban). The Questions were designed in such manner so that the problems
which were faced by those Home Builders / Land Developers emerge out prominently. The
Researcher systemically arranged those earlier designed Questions and compiled those questions
into a single Questionnaire. The said Questionnaire is finding its application while doing Critical
Analysis of the problems which are related to “Affordable Housing in Partnership”.23 The
Questions and Answers which were relied upon by the Researcher for making Critical Analysis
in this chapter are as follows:

What problems did you face after you became part of the Public Private Partnership for House
Construction under the Scheme of Prime Minister Awas Yojana (Urban)?

It is observed that 2 out of 5 home builders have got land from the Government for construction
of houses as per the Public Private Partnership Model and the Individual applicants who are
willing to purchase a house have to pay a nominal price for the proportionate share of the land to
the Government and will have to pay the Home Builder for just the Construction. The individual
applicants at the stage of ground breaking make direct payment of such amount of money to the
Central Government which is equal to the nominal price of the proportionate share of land upon
which the house of that particular applicant will be constructed. The Home Builder is supposed
to get payment for the Construction Work. The Home Builder does not directly receive payment
for the Construction Work from the individual applicant. The Home Builder gets his payment
through National Housing Bank and Union Cabinet allocates huge sum of money in National
Urban Housing Fund.24 The spending done from National Urban Housing Fund is entirely in
control of the National Housing Bank. The Home Builder does not get proper and regular
disbursement of payment from the National Housing Bank and therefore the Home Builders
suffers financially and the Construction Work also gets hampered.

Are you having any sort of dispute with the Central Government in respect of the Public
Private Partnership for House Construction under the Scheme of Prime Minister Awas
Yojana (Urban)?

23
The construction of affordable housing has been driven by the need to provide housing and basic services at
minimal cost. This has manifested at multiple levels and drives decision making in terms of where houses are
located, the selection of construction materials and technologies which are either low cost and/or reduce
construction time, in order to limit the total cost of the project.
24
https://www.moneycontrol.com/news/business/real-estate/budget-2019-1-53-lakh-houses-constructed-under-
pradhan-mantri-awas-yojana-piyush-goyal-3459291.html
It is observed that 1 out of 5 Home Builders say that there is no dispute at all. That particular
Home Builder admitted there is irregular disbursement of payment from the Central Government
but he uses his political contacts and pays bribe to some public servants and some Central
Government Employees for getting regular disbursal of payment.

It is observed that 1 out of 5 Home Builders say that the Dispute will soon arise because the
National Housing Bank has issued a notice to that Home Builder for non compliance to the
specifications provided under the Real Estate Regulation Act, 2016. 25 The notice issued by the
National Housing Bank clearly stated that further payments shall be stopped because of the
above reason. The said Home Builder clearly presented evidences to show that there has been
complete compliance to the specifications provided under the Real Estate Regulation Act26 and
the said Home Builder alleged that National Housing Bank is using ugly and crooked means to
deprive that Home Builders from payment which is entitled by that particular Home Builder.
This particular Home Builder is aggrieved by the notice which was served upon him by the
National Housing Bank but not interested to initiate legal proceeding against the National
Housing Bank at this stage. The Home Builder at this stage would instead approach the Ministry
of Housing and Urban Poverty Alleviation for verifications of the allegations made against him
by the National Housing Bank and for declaring those allegations as baseless.

It is observed that 3 out of 5 Home Builders have admitted the existence of disputes. The nature
of dispute in all three cases is regarding the disbursement of payment from Central Government
which these home Builders are entitled to receive. All the three Home Builders admitted that
getting no Objection Certificate for process of payment is a real big problem. The Pune
Municipal Corporation Authorities are mostly reluctant to issue no Objection Certificate for
process of payment despite no genuine reasons and even if the no objection certificate for
process of payment is obtained still these Home Builders suffer because there is lacuna on part of
the National housing Bank in making regular disbursement of money which is supposed to be
received by these Home Builders on account of payment for the construction Work done by
these Home Builders. These three Home Builders have been in conflict with the Pune Municipal
Corporation and also with the National Housing Bank since the month of September, 2018.
These three Home Builders have lodged complaints against National Housing Bank with the
Governor of the Reserve Bank of India.

These three Home builders have jointly filed a Writ Petition against the Pune Municipal
Corporation for necessary directions to ensure that the officials of the Pune Municipal
Corporation perform their duties properly and do not make delay in performing their duties. The
Writ Petition also claimed Judicial Supervision and Judicial Control over the Pradhan Mantri
Awas Yojana Department of Pune Municipal Corporation.

What are the defects in the Scheme of Prime Minister Awas Yojana (Urban) according to you?

It is observed that 4 out of 5 Home Builders have admitted that financial structuring of the
Scheme is not proper and there is insufficient funding for this Scheme. The sanction amount for

25
https://taxguru.in/corporate-law/compliances-rera-2016.html
26
https://taxguru.in/corporate-law/audit-rera-real-estate-regulation-developmentact2016.html
the Scheme is very much insufficient and the disbursed amount of money for the Scheme in Pune
City has been sparingly very low and this has put these four Home Builders in extreme financial
distress. It is observed that 3 out of 5 Home Builders have admitted that Legal Compliance and
Procedural Compliance for the Land Developers / Home Builders associated with this Scheme
could have been made simpler.27 The complex legal compliances have proved to be expensive
and energy consuming for the Home Builders / Land Developers and it is becoming very
difficult for these Builders/ Land Developers to meet the needs of the Beneficiary.28

What problems did you face after you became part of the Public Private Partnership for House
Construction under the Scheme of Prime Minister Awas Yojana (Urban)?

It is observed that 4 out of 5 Home Builders have admitted that the financial support from
Central Government and financial support from National Housing Bank has been very much
irregular from the very beginning. It is observed that 2 out of 5 Home Builders have emphasized
the corruption problems within the Pradhan Mantri Awas Yojana Department of Pune Municipal
Corporation and these two Home Builders have clearly explained that corruption has caused a
significant loss to those two Home Builders.29 It is observed that 2 out of 5 Home Builders have
admitted that they are not receiving adequate support and cooperation from the Pune Office of
the Pradhan Mantri Awas Yojana (Urban) and these two Home Builders want the Ministry of
Housing and Urban Poverty Alleviation to deploy proper and competent employees for the
Pradhan Mantri Awas Yojana Department at the Office of the Pune Municipal Corporation. 30

C: OUTCOME OF CRITICAL ANALYIS ON THE CONCEPT

OF “AFFORDABLE HOUSING IN PARTNERSHIP”:

1. The Critical Analysis under this chapter has led to discovery of the fact that the National
Housing Bank which functions under the Reserve Bank of India is not having proper
coordination with the Ministry of Housing and Urban Poverty Alleviation. There have
been some reported cases more fully discussed under Chapter –VII where it is observed
that Maharashtra Housing and Area Development Authority and Pune Municipal
Corporation have issued Payment Clearance Certificate and such Payment Clearance
Certificate was forwarded to National Housing Bank with written instruction from
Ministry of Housing and Urban Poverty Alleviation to National Housing Bank for
disbursal of payment due to the concerned Home Builder / Land Developer. It is really
very unfortunate that National Housing Bank did not make the payment in most of such

27
http://realtyplusmag.com/measures-to-attract-the-private-real-estate-sector-under-pradhan-mantri-awas-yojana-
pmay/
28
http://environicsindia.in/2017/07/26/pradhan-mantri-awas-yojana-distant-dream-or-reality/
29
https://shaktifoundation.in/wp-content/uploads/2018/10/Mainstreaming-thermal-comfort-for-all-and-resource-
efficiency-in-affordable-housing_1.pdf
30
https://www.consumer-voice.org/consumer-right-laws/pradhan-mantri-awas-yojana/
 cases. The role of National Housing Bank in such cases has indeed become subject matter
of strong criticism.

2. The Critical Analysis under this chapter has led to discovery of the fact that the
Maharashtra Housing and Area Development Authority and the Pune Municipal
Corporation are actively involved in massive corruption and are generating opportunity to
create big financial scams in the Scheme of Pradhan Mantri Awas Yojana (Urban). This
is not desirable at any case. The present government under the Prime Ministership of
Shri. Narendra Modi has committed to the citizens of this country for eliminating
corruption. This same Government will be highly criticized by the public in general when
news channels, media and press will make discovery of the financial scams associated
with the Scheme of Pradhan Mantri Awas Yojana (Urban).
CHAPTER – VI
LEGAL ASPECT
A: GENERAL OVERVIEW ON THE LEGAL ASPECT OF THE
RESEARCH WORK
The Legal Aspect of this Research Work has dealt with different kinds of legal aspect
involved in a Government Housing Scheme in general. The different kinds of legal aspect
have been dealt separately under different headings like Constitutional Aspect,
International Aspect, Jurisprudential Aspect, etc.

It is important to categorize different kinds of legal aspect under different heading to

study these different kinds of legal aspect in detail.

B: ENUMERATION OF THE DIFFERNENT CATAGORIES

OF LEGAL ASPECT WITHIN THIS RESEARCH WORK
The different categories of legal aspect are discussed hereunder in detail:-

 Jurisprudential Aspects ---

a) The Zamindars in the Province of Bengal during British Rule had a similar
policy for the subjects who resided within the territorial limits of the area
under Zamindari of a particular Zamindar. The policy was known as “Thika
Tenancy” and the subject residing within a premise or house allotted by the
Zamindar under “Thika Tenancy” policy was known as a Thika Tenant. This
“Thika Tenancy” policy was given legal reorganization by the Government in
British India which led to enactment of the Calcutta Thika Tenancy Act. The
said “Thika Tenancy” policy was criticized because a thika tenant can never
become owner of the house /premise enjoyed by him under the policy of
“thika tenancy”. The ownership of the same always remained with that
particular Zamindar.

b) The Sociological School of Jurisprudence provides basics of housing scheme

policy. The Sociological School of Jurisprudence enumerates the principle
that laws and policy of the Government must be good enough to address the
sociological problems and sociological issue in the nation. The Housing
Problem in India is a big sociological problem and the policy laid in the
Scheme of Pradhan Mantri Awas Yojana (Urban) is actually framed to
remove this big social problem. It is therefore observed that the concept of
the Scheme of Pradhan Mantri Awas Yojana (Urban) is prepared in
accordance with the ideology of the Social School of Jurisprudence.
 International Aspects --- There are many Schemes similar to Prime Minister
Awas Yojana prevailing in different developing countries like Sri Lanka and
Bangladesh and such similar schemes are patronized by the Government of such
countries. The Governments in third world countries are not only focusing on
Affordable Housing Schemes but Governments of countries like United Kingdom,
Australia and United States of America are also providing affordable housing
schemes to its citizens. The Researcher herein has discussed Government
sponsored affordable housing scheme of some countries like :

(a) Australia
Australians in receipt of many social security benefits from Centrelink who
rent housing from a private landlord are eligible for rent assistance. Rent
assistance is a subsidy paid directly to the tenant in addition to the basic
Centrelink benefit such as the Age Pension or the Disability Pension. The
amount of rent assistance paid depends on the amount of rent payable,
whether the tenant has dependents and how many dependents there are.
Tenants who live in public housing in Australia are not eligible for rent
assistance.

Australians buying a home for the first time are eligible for a first home owner
grant. These grants were introduced on 1st July 2000 and are jointly funded
by the Commonwealth government and the state and territory governments.
First home buyers are currently eligible for a grant of A$7000 to alleviate the
costs of entering the housing market.

The Commonwealth government in 2008 introduced first home saver

accounts, whereby those saving for a new home are eligible for government
contributions to their savings account, subject to conditions.

(b) Canada
In Canada affordability is one of three elements (adequacy, suitability) used to
determine core housing needs.[6]
In 2002, the Social Housing Services Corporation (SHSC) was created by
Province of Ontario to provide group services for social housing providers
(public, non-profit and co-op housing) following the downloading of
responsibility for over 270,000 social housing units to local municipalities. It
is a non-profit corporation governed by a board of municipal, non-profit and
co-op housing representatives. Its mandate is to provide Ontario housing
providers and service managers with bulk purchasing, insurance, investment
and information services that add significant value to their operations.
With an annual budget of $4.5 million, SHSC and its two subsidiaries, SOHO
and SHSC Financial Inc. offers a dedicated insurance program for social
housing providers, bulk gas purchasing and an innovative energy efficiency
 retrofit program that coordinates energy audits, expertise, funding, bulk
purchasing of energy-efficient goods, training and education, and data
evaluation. SHSC manages and provides investment advice to housing
providers on capital reserves valued at more than $390 million. Working
closely with other housing sector organizations and non-governmental
organizations, SHSC also supports and develops independent housing-related
research, including a new Housing Internship program for graduate-level
researchers.

(c) China
China is also experiencing a gap between housing price and affordability as it
moves away from an in-kind welfare benefit system to a market-oriented
allocation system (Hui et al. 2007). Most urban housing prior to 1978 in the
planned-economy era consisted of nearly free dwellings produced and
allocated by the unsustainable single-channel state-funded system. The goal of
China's housing reform started in 1978 was to gradually transform housing
from a "free good" to a "subsidized good" and eventually to a "commodity",
the price of which reflects true production costs and a market profit margin. In
1998 China accelerated its urban housing reform further moving away from
an in-kind welfare benefit system to a market-oriented allocation system, with
the state reducing its role in housing provision. The reform is followed by
increasing home ownership, housing consumption, real estate investment, as
well as skyrocketing housing price.
High housing price is a major issue in a number of big cities in China. Started
in 2005, high housing appreciation rate became serious affordability problem
for middle and low income families: in 2004 the housing appreciation rate of
17.8%, almost twice the income growth rate 10% (NBSC 2011). Municipal
governments have responded to the calling for increase housing supply to
middle and low-income families by a number of policies and housing
programs, among which are the Affordable Housing Program and the Housing
Provident Fund Program.
The Affordable Housing Program (commonly known as the "Economical and
Comfortable Housing Program, or 经济适用房) is designed to provide
affordable housing to middle- to low-income households to encourage home
ownership. In 1998 the Department of Construction and Ministry of Finance
jointly promulgated "The Method of Urban Affordable Housing Construction
Managing," marked the start of the program. Aimed at middle- to low-income
households (annual income less than 30,000 to 70,000 RMB according to size
of household and the specific area), this public housing program provides
housing (usually 60–110 square meters) at affordable price (usually 50–70%
market price).
Within the policies and mandates set by the central government, local
governments are responsible for the operation of the program. Local
governments usually appropriate state-owned land to real estate developers,
 who are responsible for the finance and construction of affordable housing.
The profit for real estate developers are controlled to be less than 3%, so as to
keep the price of housing at the affordable level. Individuals need to apply for
the affordable housing through household and income investigation.
The program is controversial in recent years because of insufficient
construction, poor administration, and widespread corruption. Local
government has limited incentive to provide affordable housing, as it means
lower revenue from land-transferring fees and lower local GDP. As a result,
the funding of the program has been decreasing ever from its inception, and
the affordable housing construction rate dropped from 15.6% (1997) to 5.2%
(2008). Because of the limited supply of affordable housing and excessive
housing demand from the middle- to low-income populations, affordable
housing are usually sold at high market price. In many cities ineligible high-
income households own affordable housing units whereas many qualified
families are denied access.
Housing Provident Fund (HPF) Program is another policy effort to provide
affordable housing. China introduced the Housing Provident Fund (HPF)
program nationwide in 1995. It is similar to housing fund programs in other
countries such as Thailand and Singapore. HPF provides a mechanism
allowing potential purchasers who have an income to save for and eventually
purchase a unit dwelling (which may be a formerly public housing unit). The
HPF includes a subsidized savings program linked to a retirement account,
subsidized mortgage rates and price discounts for housing purchase.

(d) United States of America

The federal government in the U.S. provides subsidies to make housing more
affordable. Financial assistance is provided for homeowners through
the mortgage interest tax deduction and for lower income households through
housing subsidy programs. In the 1970s the federal government spent similar
amounts on tax reductions for homeowners as it did on subsidies for low-
income housing. However, by 2005, tax reductions had risen to $120 billion
per year, representing nearly 80 percent of all federal housing
assistance.[32] The Advisory Panel on Federal Tax Reform for President
Bush proposed reducing the home mortgage interest deduction in a 2005
report.[33]
Housing assistance from the federal government for lower income households
can be divided into three parts:

"Tenant based" subsidies given to an individual household, known as

the Section 8 program

"Project based" subsidies given to the owner of housing units that must be
rented to lower income households at affordable rates,
Public Housing Projects which are usually owned and operated by the
Government. (Some public housing projects are managed by subcontracted
private agencies.)
“Project based" subsidies are also known by their section of the U.S. Housing
Act or the Housing Act of 1949, and include Section 8, Section 236, Section
221(d)(3), Section 202 for elderly households, Section 515 for rural renters,
Section 514/516 for farmworkers and Section 811 for people with disabilities.
There are also housing subsidies through the Section 8 program that are
project based. The United States Department of Housing and Urban
Development (HUD) and USDA Rural Development administer these
programs. HUD and USDA Rural Development programs have ceased to
produce large numbers of units since the 1980s. Since 1986, the Low-Income
Housing Tax Credit program has been the primary federal program to produce
affordable units; however, the housing produced in this program is less
affordable than the former HUD programs.
Another program is Inclusionary Housing—an ordinance that requires housing
developers to reserve a percentage between 10-30% of housing units from
new or rehabilitated projects to be rented or sold at a below market rate for
low and moderate-income households.
One of the most unusual US public housing initiatives was the development of
subsidized middle-class housing during the late New Deal (1940–42) under
the auspices of the Mutual Ownership Defense Housing Division of
the Federal Works Agencyunder the direction of Colonel Lawrence
Westbrook. These eight projects were purchased by the residents after
the Second World War and as of 2009 seven of the projects continue to
operate as mutual housing corporations owned by their residents. These
projects are among the very few definitive success stories in the history of the
US public housing effort.
In the U.S., households are commonly defined in terms of the amount
of realized income they earn relative to the Area Median Income or
AMI.[34] Localized AMI figures are calculated annually based on a survey of
comparably sized households within geographic ranges known
as metropolitan statistical areas, as defined by the US Office of Management
and Budget. For U.S. housing subsidies, households are categorized by federal
law as follows:

Moderate income households earn between 80% and 120% of AMI.

Low income households earn between 50% and 80% of AMI.

Very low income households earn no more than 50% of AMI.

Some states and cities in the United States operate a variety of affordable
housing programs, including supportive housing programs, transitional
housing programs and rent subsidies as part of public assistance programs.
Local and state governments can adapt these income limits when
administering local affordable housing programs; however, U.S. federal
programs must adhere to the definitions above. For the Section 8 voucher
program, the maximum household contribution to rent can be as high as 40%
gross income.
Comprehensive data for the most affordable and least affordable places in the
U.S. is published each year by an affordable housing non-profit organization,
the National Low Income Housing Coalition. The NLIHC promotes a
guideline of 30% of household income as the upper limit of affordability.
According to a 2012 National Low Income Housing Coalition report, in every
community across the United States "rents are unaffordable to full-time
working people."
However, by using an indicator, such as the Median Multiple indicator which
rates affordability of housing by dividing the median house price by gross
[before tax] annual median household income), without considering the
extreme disparities between the incomes of high-net-worth individual (HNWI)
and those in the lower quintiles, a distorted picture of real affordability is
created. Using this indicator—which rates housing affordability on a scale of
0 to 5, with categories 3 and under affordable—in 2012, the United States
overall market was considered 3 (affordable).
Since 1996, while incomes in the upper quintile increased, incomes in the
lower quintile households decreased creating negative outcomes in housing
affordability.
Before the real estate bubble of 2007, the median household paid $658 per
month in total housing costs (Census 2002). A total of 20% of households
were deemed to be living in unaffordable housing: Nine percent of all
households are renters in unaffordable housing, and eleven percent of all
households are homeowners with high housing costs.
In the 2000 U.S. Census, the median homeowner with a mortgage (70% of
homeowners and 48% of census respondents) spent $1,088 each month, or
21.7% of household income, on housing costs. The median home owner
without a mortgage spends $295 per month, or 10.5% of household income,
on housing costs. Renters in 2001 (32% of respondents) spent $633 each
month, or 29% of household income, on housing costs.
Governmental and quasi-governmental agencies that contribute to the work of
ensuring the existence of a steady supply of affordable housing in the United
States are the U.S. Department of Housing and Urban Development (HUD),
USDA Rural Development, the Federal Home Loan Bank, Fannie Mae,
and Freddie Mac. Housing Partnership Network is an umbrella organization of
100+ housing and community development nonprofits. Important private
sector institutions worth consulting are the National Association of Home
Builders, the National Affordable Housing Management Association
(NAHMA), the Council for Affordable and Rural Housing (CARH) and
the National Association of Realtors. Valuable research institutions with staff
 dedicated to the analysis of "affordable housing" includes: The Center for
Housing Policy, Brookings Institution, the Urban Institute and the Joint Center
for Housing Studies at Harvard University and the Furman Center for Real
Estate and Urban Policy at New York University, and the Center on Budget
and Policy Priorities. Several of these institutions (the Fannie Mae
Foundation, Urban Institute, Brookings Institution Metropolitan Policy
Program, Enterprise Community Partners, LISC, the Harvard Joint Center for
Housing Studies, and others) partnered to create an online information
resource devoted to affordable housing and community development issues.

(e) United Kingdom

The British housing market in the late 1980s and early 1990s experienced an
almost unprecedented set of changes and pressures. A combination of
circumstances produced the crisis, including changes in demography, income
distribution, housing supply and tenure, but financial deregulation was
particularly important. Housing affordability became a significant policy issue
when the impact on the normal functioning of the owner occupied market
became severe and when macro-economic feedback effects were perceived as
serious. A number of specific policy changes resulted from this crisis, some of
which may endure. Many of these revolve around the ability or otherwise of
people to afford housing, whether as would-be buyers priced out of the boom,
recent buyers losing their home through mortgage default or trapped by
'negative equity', or tenants affected by deregulation and much higher rent
levels.
A 2013 investigation by The Bureau of Investigative Journalism found that
the UK spent £1.88bn – enough to build 72,000 homes in London – on renting
temporary accommodation in 12 of Britain's biggest cities over the preceding
four years.
Research by Trust for London and the New Policy Institute found that London
delivered 21,500 affordable in the three years up to 2015/16. This was 24% of
all homes delivered during that period.
The United Kingdom has a long tradition of promoting affordable social
rented housing. This may be owned by local councilsor housing associations.
There are also a range of affordable home ownership options, including shared
ownership (where a tenant rents part share in the property from a social
landlord, and owns the remainder). The government has also attempted to
promote the supply of affordable housing principally by using the land-use
planning system to require that housing developers provide a proportion of
either social or affordable housing within new developments. [27] This
approach is known in other countries with formal zoning systems
as inclusionary zoning, whilst the current mechanism in the UK is through the
use of a S.106 Agreement. In Scotland the equivalent is a Section 75 planning
agreement. (Section 75 of the Town and Country Planning (Scotland) Act
1997).
A high proportion of homes in the UK were previously council-owned, but the
numbers have been reduced since the early 1980s due to initiatives of
the Thatcher government that restricted council housing construction and
provided financial and policy support to other forms social housing. In 1980,
the Conservative government of Margaret Thatcher introduced the Right to
Buy scheme, offering council tenants the opportunity to purchase their
housing at a discount of up to 60% (70% on leasehold homes such as flats).
Alongside Right to Buy, council-owned stock was further diminished as
properties were transferred to housing associations. Council Tenants in some
instances have chosen to transfer management of the properties to arms-length
non-profit organizations. The tenants still remained Council tenants, and the
housing stock still remained the property of the Council. This change in
management was encouraged by extra funding from central government to
invest in the housing stock under the Decent Homes Programme. The program
required council housing to be brought up to a set standard was combined
with restrictions on the amounts that councils could borrow and led to an
increase in such arms length management organizations being set up. In some
areas, significant numbers of council houses were demolished as part of urban
regeneration programs, due to the poor quality of stock, low levels of demand
and social problems.
In rural areas where local wages are low and house prices are higher
(especially in regions with holiday homes), there are special problems.
Planning restrictions severely limit rural development, but if there is evidence
of need then exception sites can be used for people with a local connection.
This evidence is normally provided by a housing Needs survey carried out by
a Rural Housing Enabler working for the local Rural Community Council.
Housing associations are not-for-profit organizations with a history that goes
back before the start of the 20th century. The number of homes under their
ownership grew significantly from the 1980s as successive governments
sought to make them the principal form of social housing, in preference to
local authorities. Many of the homes previously under the ownership of local
authorities have been transferred to newly established housing associations,
including some of the largest in the country. Despite being not-for-profit
organizations, housing association rents are typically higher than for council
housing. Renting a home through a housing association can in some
circumstances prove costlier than purchasing a similar property through a
mortgage.
All major housing associations are registered with the Homes and
Communities Agency who are responsible for the regulation of social housing
from 1 April 2012. Housing associations that are registered were known as
Registered Social Landlords from 1996, but in the Housing and Regeneration
Act 2008 the official term became Registered Providers. The latter also
covers council housing, and developers and other bodies that may receive
grants for development. The Department for Communities and Local
Government sets the policy for housing in England. In Scotland policy is set
 by the Scottish Parliament; inspecting and regulating activities falls to the
Scottish Housing Regulator. Social housing in Northern Ireland is regulated
by the Northern Ireland Housing Executive, which was established to take on
ownership of former council stock and prevent sectarian allocation of housing
to people from one religion.
A 2017 report by Trust for London and the New Policy Institute found that
24% of new homes built in London were social, affordable or shared
ownership accommodation in the three years up to 2015/16.

 Constitutional Aspects ---

(a) This scheme of Prime Minister Awas Yojana (Urban) is in consonance with
the provisions of Article 38 and Article 39 of the Indian Constitution and is
being implemented to uphold equality amongst its citizens as far opportunity
of housing is concerned and Directive Principle of State Policy is concerned.
The Scheme of Prime Minister Awas Yojana (Urban) is also upholding the
principle of equality because through this Scheme there is promotion of equal
housing opportunity.
(b) The Supreme Court of India in the year 1985 has brought adequate housing,
shelter and livelihood within purview of Article 21 of the Indian Constitution.
It was observed in the landmark case of Olga Tellis v. Bombay Municipal
Corporation,1 the Supreme Court of India elaborated on the right to adequate
housing, shelter and livelihood being part of the all-encompassing Right to
Life under Article 21 of the Indian Constitution. The eviction pavement
dwellers as per provisions of Section 312 to Section 314 of the Bombay
Municipal Corporation Act was held as inappropriate and bad in law unless
arrangement of alternate accommodation is made for those slum dwellers.
Justice Chandrachud observed that after anxious consideration, the Court
came to the conclusion that Section 314 of the BMC Act for removal of
encroachments on footpaths could not be regarded as unreasonable, unfair or
unjust. However, while holding that Section 314 was constitutional, the
Supreme Court order also laid down that the eviction of the slum and
pavement dwellers could be done only after arranging alternative
accommodation for them and not before that. In greater detail, the judgment
held that those persons who were given identity cards and whose dwellings
were censured must be given alternative sites for their resettlements, while for
the others, alternative pitches will be offered at a convenient place where the
Government considers reasonable. It also directed the slums would not be
evicted for one month until the monsoons had passed. The decision in Olga
Tellis Case was again upheld by the Supreme Court of India in the land mark
 case Ahmedabad Municipal Corporation v Nawab Khan Gulab Khan 2 which
was decided in year 1997.

(c) The land acquisition by the State of Uttar Pradesh was upheld by the Supreme
Court of India in Chameli Singh v. State of Uttar Pradesh 3 because the land
acquisition was done for a public purpose under a special Scheme evolved to
provide housing accommodation exclusively for the Scheduled Castes and
Dalits. The decision in Chameli Singh’s case reiterated the status of the right
to housing as a distinct constitutional obligation of the State both under the
Right to Life and under Article 19(1)(e) which guarantees the right of every
citizen to reside and settle in any part of the country. This judgment upheld
the right to housing particularly of weaker sections such as Dalits and
Scheduled Castes. Therefore, it is very clear that the Court views the
animation of the State's obligation to provide adequate housing in terms of
formulating housing Schemes and Policy for the weaker sections of the
society and these are under judicial review.
(d) The Supreme Court of India discussed in details housing problems for the
weaker sections of the society in Shantishar Builders v. Narayan Khimalal
Totame 4 and in that decision, it was clearly stated that “basic needs of man
have traditionally been accepted to the three - food, clothing and shelter. The
right to life is guaranteed in any civilized society. That would take within its
sweep the right to food, the right to clothing, the right to decent environment
and a reasonable accommodation to live in.” The Court iterated that shelter
for a human being has to be a suitable accommodation which would allow
him to grow and develop in every aspect - physical, mental and intellectual. A
reasonable residence is an indispensable necessity for fulfillment of the
constitutional goal in the matter of development of man and should be taken
as included in ‘life' in Article 21.

 Legislative Aspects --- A critical review of the different polices framed by

Delegated Legislative Bodies such as Pune Municipal Corporation and Ministry
of Housing and Urban Poverty Alleviation for successful implementation of the
Prime Minister Awas Yojana (Urban). An analysis is to be made to check if the
policy framed Delegated Legislative Bodies are in consonance with the Indian
Contract Act or not.

 Administration Aspects --- Critical Analysis of the legal issues emerged during
implementation of different schemes under the Prime Minister Awas Yojana
(Urban) and administrative action taken by the Urban Local Body in exercise of
quasi judicial powers for redressing such legal issues. The Scheme of Prime
 Minister Awas Yojana (Urban) is already within purview of Judicial Review as
per the doctrine which was laid by the Supreme Court of India in Chameli Singh
v. State of Uttar Pradesh 3 so the administrative action and administrative
decisions which are taken as per Scheme Guidelines by default becomes subject
matter of Judicial Scrutiny. The Administrative Bodies like Urban Local Bodies
which are responsible for implementation of the Scheme must be very much
careful while passing orders or issuing notification in administrative capacity
under the Scheme Guidelines because Courts of Law will have powers to directly
exercise jurisdiction upon the orders passed or notification issued in
administrative capacity under the Scheme Guidelines. The arbitration and
conciliation clause in the Scheme Prospectus or Scheme Guidelines will not act as
bar to the Courts of Law from exercising its powers.

 Judicial Aspects --- Decisions in different Public Interest Litigation associated

with Prime Minister Awas Yojana (urban) and decisions in Litigations in Civil
Courts and Consumer Courts of Pune City which are related to the Prime Minister
Awas Yojana (Urban). The Supreme Court of India has laid down a doctrine in
Chameli Singh v. State of Uttar Pradesh 3 and as per that doctrine, obligation is
put upon the State to provide adequate housing in terms of formulating housing
Schemes and Policy for the weaker sections of the society and these are under
judicial review. The Scheme of Prime Minister Awas Yojana (urban) is also
subject to judicial review as per the doctrine which was laid by the Supreme Court
of India in Chameli Singh’s Case. The Researcher strongly believes that Judicial
Review of the Scheme of Pradhan Mantri Awas Yojana (Urban) is the best
solution for removal of defects under the Scheme.
CHAPTER - VII

EMPERICAL
RESEARCH
A: PRELIMINARY:
Empirical Legal Studies (ELS) is an approach to the study of law, legal procedure, and legal
theory through the use of empirical research. Empirical legal researchers use research techniques that
are typical of economics, psychology, and sociology; however, ELS research tends to be more
focused on purely legal questions than the related fields of law and economics, legal psychology,
and sociology of law. ELS also tends to be more narrowly quantitative than fields such as law-and-
society or new legal realism (NLR), which embrace qualitative and quantitative social science
methods, as well as mixed method approaches. Empirical legal research comprises an empirical part
and a legal part. The empirical part differs in principle from the typical legal part.

Empirical research in the social sciences deals with the collection of facts concerning the world
and the measurement and careful observation of the reality. Empirical legal research differs from
doctrinal research developed in the normative discipline of law (i.e. ‘law on paper’) because it
seeks to capture real life evidence (law in practice), regarding the world based on either the
researcher’s and/or other people’s observations or experiences, i.e. through real-life data. This
data may be based on legislation or case law as part of the real world. Thus, in empirical legal
research, both approaches (legal and non legal) can be perceived as complementary to the extent
that empirical (legal) research will show the external perspective of law while the doctrinal
research will show the internal aspect of law.

Empiricism refers to a basis in experience or experiment; the word “empirical” denotes evidence
about the world based on observation or experience’. Harrington and Merry explain: ‘Empirical
legal scholars approach what is taken to be “the law”…as a social construction to be explained
by empirically testing causal and non-causal hypotheses’. Yet what is meant by empirical legal
research is not always clearly described or understood, or agreed upon. Many different strands of
empiricism in law can be discerned; Cane and Kritzer refer to a ‘healthy pluralism’ of
approaches. In a legal research context empiricism is frequently contrasted with ‘doctrinal’ work
– research based on analysis of legal texts and doctrine.

As Economides has observed, though legal scholars themselves may not explicitly label their
work as empirical or ‘socio-legal’, it is unlikely to be only ‘esoteric theory or pure doctrinal
analysis’. Fifteen years ago Manderson reported that only 20 per cent of Australian HDR
students in law self-reported undertaking ‘doctrinal’ research, while 17 per cent described their
work as ‘theoretical’. Another 20 per cent were engaged in ‘law reform’ studies, which may be
assumed to have at least some empirical component. Hutchinson and Duncan report that a small
study of law theses in the period 2004–09 found that just over half were ‘unlikely to require
ethics clearance’, suggesting that the remaining 44 percent had some empirical aspect. On a
broad approach, case studies, case analysis and arguments for law reform are all empirical
methods, as they refer to ‘the real world’. These methods may, however, be limited in terms of
the empirical insights they can provide into the law’s operations. Moreover, Bradney notes that
‘most definitions of empirical legal research are much more restricted’. The starting point for a
discussion of legal empiricism is often the United States’ Legal Realism of the early part of the
twentieth century. Dow has described this movement as a challenge to the dominance of ‘legal
science’ and reliance on the case study method in the late nineteenth century. Perhaps the most
obvious goal of empirical research in law is to contrast the ‘law in books’ with the ‘law in action’
in the legal realist tradition.

Kruse has explained the necessity for this type of project as follows:

“Missing from the law in books are the myriad ways the meaning of law shifts as it filters down
from appellate opinions to lower court cases; as it spreads from lower court cases to local
practices; as local practices influence the information and advice about the law transmitted by
lawyers, court clerks, social workers, probation officers, friends, neighbors, employers, and
others; and as it ultimately shapes the lives of people who receive information or advice from
these multiple sources of legal authority.”

This variance between legal doctrine and its enactment in everyday life led to early empirical
studies such as Moore and Callahan’s 1940s examination of parking fines and Kalven and
Zeisel’s study of jury decision-making in the 1960s.

B: HISTORY OF EMERICAL LEGAL RESEARCH:

Empirical research in law has a long history. The Legal Realists were thinking about law’s social
implications in the early 1900s. Today, it is possible to find a multitude of examples of empirical
methods in law. While criminal law and family law are perhaps the most abundant sources, in
Australia empirical legal research has been conducted in areas as diverse as bankruptcy,
consumer law, and law and popular culture. While it may not always be explicitly labeled or
taught, Mohr and Manderson observed in 2002 that more critical, interdisciplinary and empirical
research was taking place in Australian universities than perhaps was commonly realized. They
noted that ‘research understood as a genuine and far reaching inquiry into the nature and
experience of law is taking place in our universities, and it is increasing’. Bradney made a
similar point in the late 1990s when he suggested that the ‘doctrinal project’ was in its ‘death
throes’. Still, even in the face of the ‘extraordinarily confined approach’ of doctrinal method,
there seems a general reluctance on the part of legal academics to engage with diverse
methodologies. Empirical research is ‘largely absent from law school curricula’. Thus, students’
and even early career academics’ encounters with various methodologies are likely to be ad hoc,
unstructured or involve learning on the job. Even with access to training and supervisors
experienced in conducting empirical research, embarking on such a project can be a daunting
task as empirical legal research throws up various unique hurdles.
C: USES OF EMERICAL LEGAL RESEARCH:

The use of empirical (non-doctrinal) legal research is an auxiliary and complementary method in
legal research. Its application requires the explanation and translation into legal terms of findings
that stem from observations, experiences and data regarding the functioning and the effects of
law. This has to be done primarily using valid and rigorous justifications. The translational issues
raised by the interdisciplinary approach are outlined in the so-called problem: the ‘fact-value’
separation or the ‘gap between facts and values’, which reflects the legal researcher’s problem of
translating the empirical evidence in a normative way that accommodates legal argumentation
and scholarship. The problem has been addressed by many scholars, who have tried to develop
tools for legal researchers to assist them in ‘leaping from valid (and relevant) empirical evidence
to formulating normative statements’. These tools comprise ‘due process criteria’ for validating
empirical research, the use of various factors for weighing conflicting arguments in terms of
‘completeness’, ‘relevance’ and ‘consonance’, and tools for the use of empirical legal research in
such a way that it shows the effectiveness of law as an instrument (one of different possible
solutions) to achieve a set of policy goals. Other scholars, on the contrary, claim that empirical
legal research already has a normative meaning when it comprises normative judgments
regarding the ‘real needs’ of ‘real people’ in real life.

D: NEED FOR EMERICAL LEGAL RESEARCH:

 It offers opportunities to verify responses by comparing a number of different approaches

to resolving an issue.

 It allows the researcher to look at a particular situation in some depth and also in a
broader sense.

 It allows a contextual rather than an artificially constructed view of experiences.

 It allows for a contextual approach to the situation, especially with regard to ‘time slice’
situations, which can be viewed before and after major events or changes in order to
document actual effects.

 It allows the researcher to delve further into inconsistent responses.

 It allows for the complexities of social and political relations to be seen and for the
relationships between these and the effects of one on others to become more obvious.
  The case study is useful for both generating and testing of hypotheses but is not limited to
these activities.

 The Empirical Legal Research has capacity of addressing casual complexity.

E: METHODOLOGY OF EMPERICAL LEGAL RESEARCH:

1. Identification and selection of the research problem.

2. Choice of a theoretical a framework (conceptual model) for the research problem and its
relationship with the previous researches.

3. Formulation of research problem, specification of its objectives, its scope and hypotheses
to be tested.

4. Design of the experiment of enquiry.

5. Definition and measurement of variables.

6. Sampling procedures.

7. Tools and technique for gathering data.

8. Coding, editing and processing of data.

9. Analyses of data selection and use of appropriate statistical procedure for summarizing
data and for statistical inference.

10. Reporting description of the research process, presentation, discussion and interpretation
of data, generalization of research findings and their limitation, and suggestion for further
research.

F: TOOLS AND TECHNIQUE FOR GATHERING DATA FOR

THIS PARTICLAR RESEARCH WORK:
The Researcher relied upon Questionnaire Method and made statistical analysis of the data
collected using the questionnaire. The Researcher used three different Questionnaires for
gathering data for this particular Research Work. The three different Questionnaires which were
used are more fully described below:-
  The first Questionnaire was meant for understanding issues in the Public Private
Partnership between the Central Government and the Home Builders associated in the
Prime Minister Awas Yojana (Urban). The first Questionnaire was filled up by fifteen
different Home Builders across Pune City who is working in the component “Affordable
Housing in Partnership” under the Pradhan Mantri Awas Yojana (Urban).

 The second Questionnaire was filled up by twelve individual citizens who have booked
homes in Pune City under the Scheme of Prime Minister Awas Yojana (Urban). The
second questionnaire was meant for understanding of the problems and grievances of the
twelve persons who have booked homes in Pune City under the Pradhan Mantri Awas
Yojana (Urban).

 The third Questionnaire was filled the Nodal Officer appointed by Pune Municipal
Corporation for the purpose of implementing the Scheme of Prime Minister Awas Yojana
(urban) within the areas under Pune Municipal Corporation. The third Questionnaire was
meant for obtaining opinion of the concerned Nodal Officer regarding implementation of
the Scheme of Prime Minister Awas Yojana (Urban).

The data collected from above three Questionnaires were studied in detail and certain
observations were made. The observations which were made are mentioned here under:

Observations from the data collected through the Questionnaire which was meant for the
Home Builders / Land Developers:

Advantages anticipated by the Defects in the Model of Problems faced after

Home Builders / Land Public Private Partnership commencement of work at
Developers before beginning under the Scheme of Housing Projects in
work with the Government Prime Minister Awas association with the
under Public Private Yojana (Urban) Government under Public
Partnership Private Partnership

profit making factor, factor like
ease of doing business after
simple collaboration with
Central Government, assurance
of timely payment, assured
fixed quantum of income in
every housing project,
generation of more work for
construction workers
no timely payment from insufficient money has been
Central Government, no sanctioned by the Central
adequate support from Government in the Scheme,
office of PMAY(U), Frequent Amendments in the
suffering losses due to Scheme Guidelines, legal
corruption involved in the and procedural Compliances
Scheme, on part of the Home Builders
are not easy
 Advantages anticipated by the Home
Builders / Land Developers before
beginning work with the Government
under Public Private Partnership
Percentage out of the total number of the
Home Builders / Land Developers who
anticipated a particular of advantage before
beginning work with the Central Government
under Public Private Partnership

Profit Making Factor 80%

Ease of doing business 46.67%

Simple Process of Collaboration with 86.67%

Central Government

Social Concern for individual who do not 26.67%

have home in Pune City

Generation of more Work for the 80%

Construction Workers

Assured fixed quantum of income in 80%

every housing project

Overall Growth of Real Estate Industry 80%

Assurance of Payment on time 26.67%

Any other advantage 6.67%

Problems faced after commencement of Percentage out of the total number of the
work at Housing Projects in association Home Builders / Land Developers who faced
with the Central Government under particular type of problem after starting
Public Private Partnership work at a particular Project Site

No timely payment from the concerned

Ministry of Central Government 75%

Not receiving adequate support and

cooperation from Pune office of the Prime
13.33%
Minister Awas Yojana (Urban)

Suffering losses due to corruption 100%

 Defects in the Scheme realized by the
Home Builders / Land Developers who
are working in association with the
Central Government under Public
Private Partnership
Percentage out of the total number of the
Home Builders / Land Developers who
detected a particular type of defect

Insufficient financial assistance from the

Central Government towards the 46.67%
implementation of the Scheme

Complex Legal and Procedural 46.67%

Compliances

Government Officials associated with the

Scheme are not at all skilled and do not
0%
have adequate training for implementation
of the Scheme

Scheme fails to provide measures to

prevent different types of corruption which
can become rampant with progress in 6.67%
implementation of the project

Frequent Amendments in Scheme 6.67%

Guidelines

The above report shows that the Government Officials associated with the Scheme are highly
skilled and have undergone adequate training for implementation of the Scheme yet these
Government officials do not work properly for implementation of the Scheme. This is really
unfortunate that the Scheme failed despite so competent human resource.

Observations from the data collected through the Questionnaire which was meant for the
Individual Citizens willing to buy homes under the Scheme of Pradhan Mantri Awas
Yojana (Urban):
Individual Persons who have booked Percentage of Individual Citizens who
homes under the Scheme and choosing have chosen each of the different
different options mentioned in the options available in that Questionnaire
Questionnaire for giving their opinion
regarding the excepted time period for
getting possession in homes booked by
them under the Scheme

Within next one year NIL

Within next two to four years 58.33%

It will take more than five years 41.67%

Individual Persons who have booked homes under the Scheme Percentage of Citizens
and choosing different options mentioned in the Questionnaire who have chosen each
for telling the Researcher about the different ways they use for of the different options
checking online status relating to process of the applications available in that
made by them for obtaining benefits of the Scheme Questionnaire

I check it myself regularly 8.33%

I check it myself but not regularly 16.67%

My Real Estate Broker / Home Builder does that for me 33.33%

I never checked online status of my application till date 33.33%

I visit nearby Maha E-sewa Kendra for checking my application 8.33%

 Individual Persons who have booked homes under the Percentage of
Scheme and choosing different options mentioned in Individual Citizens
the Questionnaire for telling the Researcher whether who have chosen
they have made the application themselves or took each of the different
help of any kind of third person for the same options available in
that Questionnaire

I have made the application all by myself NIL

I took help of a friend /relative while making the online

application for being beneficiary in the Scheme 50%

I took help of Maha E- sewa Kendra for making the online

application for being beneficiary in the Scheme 8.33%

I took help of manager /owner / employee of a cyber café

for making the online application to become beneficiary 16.67%
in the Scheme

I took help from the Government Officials responsible for

implementation of the Scheme 8.33%

I took help of Real Estate Broker / Home Builders for

making this online application to become beneficiary in 16.67%
the Scheme

A chart in form of bar graph is created by the Researcher where the dependency of home buyers
upon other people when comes to booking homes under Affordable Housing in Partnership
component of the Scheme of Pradhan Mantri Awas Yojana (urban) is compared with the
dependency of same home buyers upon other persons when it comes to checking the present
status of the progress of application processing. The said chart in form of bar graph reveals that
twenty five person people are depending on themselves for tracking current status of their
application which is indeed very good number. These twenty five percent people will be in best
position to detect the problems of beneficiary of the Scheme and are best respondents for making
comment on the working of the Scheme of Pradhan Mantri Awas Yojana (urban). There were
hardly any respondent who depended on himself while making the application and again here are
twenty five percent respondents who depended on himself for tracking current status of such
application which is pretty good number indeed. All figures mentioned in the bar graph are
expressed in percentage.

The said chart which is more fully discussed above has been shown hereunder:

35

30

25

20 Dependency at the time of

making online application
15
Dependency for tracking
10 current status of such
application
5

0
Maha E sewa Myself Real Estate
Kendra Broker / Home
Builder

The Researcher has prepared another chart in form of bar graph to analyze the defect in the
Scheme and the problems faced by Home Builders / Land Developers because of associated
defect in the Scheme. All figures shown in the bar graph are expressed in percentage.

120
100
80
60
different type of defects observed
40 in this Urban Housing Scheme
20 probems faced by Home Builders
0 due a particular type of defect

Corruption Financial Assistance Complex Legal

from Government Compliance with no
ease of doing
business
It is observed in that above bar graph that only 6.66% of the Home Builders / Land Developers
considered corruption factor as defect within the Scheme itself but all those fifteen Home
Builders / Land Developers who have participated as Respondents in this Research Work has
admitted that they are very much suffering because of rampant corruption factor which comes
with this urban housing scheme. The entire process associated with the implementation of this
Scheme has been digitalized yet it failed to do away corruption.

The Researcher has interviewed twelve persons who have booked homes in the Scheme of
Pradhan Mantri Awas Yojana (urban) and have categorized these twelve persons on the basis of
occupation of those twelve persons. The categorization based on the occupation of the twelve
persons is as follows:

(a) Persons doing jobs or working as an employee of an organization: 3

(b) Persons doing business as shop keepers having their own shop: 5

(c) Persons involved in odd jobs like working as a domestic help or servant: 4

The Researcher further observed that only ten out of twelve persons were able to disclose their
approximate monthly income. The Respondent has found none of these twelve persons have
monthly income above Rs. 18,000/- (Rupees Eighteen Thousand Only) per month.

The Researcher has counted the number of persons as per quantum of monthly income in the
following manner:

(a) Monthly income of Rs. 10,000/- = 3 persons

(b) Monthly income of Rs. 15,000/- = 6 persons

(c) Monthly income of Rs. 17,000/- = 1 person

(d) Monthly income of Rs. 18,000/- = 1 person

G: ROLE OF QUESTIONNAIRES IN EMERICAL LEGAL

RESEARCH ON THE SCHEME OF PMAY (U):
The Researcher has primarily selected the option of Questionnaire for this empirical legal
research because the option of Questionnaire is very cheap and it covers questions on all aspects
of the problem. The facts regarding different aspects of the problems easily come out through
Questionnaire. The Researcher is blessed to have very cooperative and supportive respondents
who have answered to all the questions in detail and filled up the Questionnaire without keeping
any unanswered questions. The Respondents have given ample time towards the Questionnaire.
The different problems associated with the Scheme of Prime Minister Awas Yojana (urban)
came out very quickly in this Questionnaire method which is adopted. The Researcher is highly
satisfied with the responses obtained through the Questionnaire method.

H: INTERPRETATION OF THE DATA COLLECTED FOR

THE EMERICAL LEGAL RESEARCH:
It is observed after interview of above mentioned twelve persons that the Scheme of Pradhan
Mantri Awas Yojana (urban) is only providing benefits to the persons who belong to
Economically Weaker Section of the Society contradictory to the view of the PMAY Nodal
Officer for the Pune City who claimed that it is very much benefiting the people of Middle
Income Group. The Researcher has observed that the Middle Income Group people are buying
flats and apartments in different parts of Pune City with price range varying from Rs. 40 Lacs to
Rs. 80 Lacs. A person paying 40 lacs rupees from his pocket can also try little harder and put 45
lacs all by himself in the flat which he intends to purchase. The circumstances is similar in case
of a person who is spending Rs. 80 lacs for a flat or apartment in Pune can try little hard and take
out Rs. 85 lacs for a flat or apartment. The Middle Group will not be having that much interest in
purchasing a flat or an apartment with benefits provided under the Scheme of Prime Minister
Awas Yojana (urban).

It is therefore the actual Lower Income Group or people from Economically Weaker Section of
the Society who are part and parcel of the Scheme of Pradhan Mantri Awas yojana (urban).
These groups of people are financially unstable and therefore cannot afford to suffer because of
the corruption in the Scheme. The Scheme must be made corruption free in the interest of such
people. The Home Builders / Land Developers who are working in housing projects under the
Scheme are actually doing it for the weaker section of the society. These Home Builders / Land
Developers should not be harassed because of habitual corruption practices witnessed amongst
Government Officials.

It is observed that those twelve persons who have booked their homes under the Scheme of
Pradhan Mantrai Awas Yojana (urban) has done so between 1st July, 2015 and 31st March 2016
and it is further observed that eleven out of twelve people is having their home constructed till
super structure level and a handful number of persons out of these eleven persons is having their
home constructed till plinth level. The construction work is not completed even after completion
of three years since the day of booking homes under the Scheme of Pradhan Mantri Awas
Yojana (urban). The process of allocation of site where the home of the applicant will be
constructed also took quite a lot of time. The Researcher has strong reasons to believe that
corruption in the Scheme is resulting in delay of allocation of houses at project site. It is again
the corruption factor which is main reason for so slow construction work. The justice has not
been done with the poor families who have booked homes under the Scheme. The Scheme till
date only has done injustice to such poor families.

The Research Design of type “explorative” has been very much suitable for this Research Work
because using explorative research design, the researcher easily managed to find out the different
problems relating to the functioning of the Scheme of Pradhan Mantri Awas Yojana (urban).

It is observed that 50% of the persons who will get home under the Scheme of Pradhan Mantri
Awas Yojana (Urban) rely upon their Real Estate Brokers and Home Builders for checking the
present status of the Scheme and every one of them relied upon a third person for making
applications for getting benefits under the Scheme. If the Home Builder / Land Developer upon
whom these people rely fail to give possession of the homes then these people would feel
themselves very much cheated by the concerned Home Builder / Land Developer with no actual
fault on part of such Home Builder / Land Developer. These Home Builders / Land Developers
are themselves helpless because of high level of corruption involved in the Scheme in fact these
Home Builders / Land Developers are victim of such corruption. It is generally seen that people
who have opted for Affordable Housing in Partnership or Beneficiary Led Construction under
the Scheme of Pradhan Mantri Awas Yojana (urban) reposes huge faith upon Home Builder /
Land Developer in charge of constructing the home which they will get under the Scheme of
Pradhan Mantri Awas Yojana and sometimes reposes faith on Real Estate Broker who keeps on
getting updates from Home Builders / Land Developers on the progress of the Construction
Work at the Housing Project Site. The Home Builders / Land Developers constructing homes in
the Scheme of Pradhan Mantri Awas Yojana (urban) can keep the commitment towards
beneficiaries of the Scheme only if appropriate Government ensures that there is timely
disbursement of assured financial assistance to the bank accounts of such Home Builders / Land
Developers.

It is already seen that 41.67% of the people have already lost their hope of getting their homes
within period of next four years and corruption is main reason for such occurrence of such
scenario. This is not all desirable because the Scheme is in social interest and scheme will fail to
protect social interest of the country if the Scheme continues to function along with corruption.
CHAPTER – VIII
FINDINGS
SUGGESTIONS
AND
CONCLUSION
A: FINDINGS DURING RESEARCH
 It is found that maximum number of persons who have booked homes under the Scheme
of Pradhan Mantri Awas Yojana (Urban) have their constructions completed till plinth
level or till super structure level. There are hardly few individuals who have booked
homes before 31st March, 2016 and got their possession in their homes. The individual
persons who have booked homes under the Scheme of Pradhan Mantri Awas Yojana
(Urban) are now complaining that amount of money which is paid by them to the
Government on account of the proportionate price of the land is remaining blocked and
no interest is paid by the Government on that money for failure to complete construction
within prescribed time period.

 It is found that funding and funds disbursement from Central Government is the main
problem in the Scheme of Pradhan Mantri Awas Yojana (Urban). The amount of money
which is sanctioned under the Scheme of Pradhan Mantri Awas Yojana (Urban) on
account of Central Assistance towards the Scheme is not yet ready for disbursal. The
Scheme is having deficient and improper funding and fund arrangement and that is
resulting into failure of the Scheme. The Scheme of Prime Minister Awas Yojana
(Urban) can never become success unless fund arrangement in the Scheme is sorted.

 It is found that lot of corruption is involved in the Scheme and some leaders of the ruling
political party is trying to gain money from the funds meant from the Scheme. The
corruptive practices involved in the Scheme are actually posing problems for the legal
compliances which are part of the Scheme. The legal compliances on part of Home
Builders / Land Developers could be carried out successfully only if the Home Builders /
Land Developers support the corruptive practices of Government Officials by regular
payment of under table money to those Government Officials.

 It is found that Government Officials who are responsible for approving and inspection of
project sites and construction sites do not perform their duties and demands under table
money from the Home Builders / Land Developers for performing their duties.

 It is found that there are lots of mistakes when cost of construction per dwelling unit or
cost of construction of each flat in the housing unit was estimated and such
miscalculations resulted into causing deficient fund sanction and the construction wok
stopped in between because of lack of funds.
B: RECOMMENDATIONS:
 It is recommended that the Home Builders / Land Developers who have entered into
Public Private Partnership with the Ministry of Housing and Urban Poverty Alleviation
for Construction of Dwelling Units under Pradhan Mantri Awas Yojana (Urban) must
also become part of All India Association of Engineering Construction Contractors
and Builders. This organization in representative capacity for the aggrieved Home
Builders / Land Developers can institute Writ Petition against the concerned Government
Ministry or concerned Government Bodies and/or Urban Local Body for curbing
corruption and for financial restructuring of the Scheme. The aforesaid organization can
also pray before the Hon’ble High Court for carrying out Construction Work under
Judicial Supervision in cases where the construction work is disrupted every now and
then because of fault on part of Government Authorities.

 It is recommended that the Home Builders / Land Developers who have who have
entered into Public Private Partnership with the Ministry of Housing and Urban Poverty
Alleviation for Construction of Dwelling Units under Pradhan Mantri Awas Yojana
(Urban) should have meeting together and discuss their problems and issues with each
other and there after the Home Builders / Land Developers should enter into
Memorandum of Understanding with the Individual Persons from Low Income Group
who have booked homes in those particular Dwelling Units. The aforesaid Memorandum
of Understanding is to be meant for the purpose of jointly enforcing legal remedies
against appropriate Government Authorities through Court of Law. The concerned Home
Builders / Land Developers together with the group of persons who have booked homes
under the Scheme of Prime Minister Awas Yojana (urban) can seek remedies through
Writ of Mandamus for completion of Construction Work in the Dwelling Units of the
Project under Judicial Supervision of the Judicial Officers at District Level and also at
Taluka Level. The aforesaid Writ of Mandamus is to be presented in the High Court as
per Memorandum of Understanding between the groups of individual persons entitled to
home under the Scheme of PMAY (U) and the Home Builders / Land Developers who
are constructing homes under the Scheme of PMAY (U).

 It is often observed that a group of individual persons who have booked homes in
dwelling units under Pradhan Mantri Awas Yojana (Urban) often enter into litigations
with the Home Builders / Land Developers who are supposed to do the construction work
in such Dwelling Units. These groups of persons who enter litigation with the Home
Builders / Land Developers fail to realize and understand the problems and restrictions of
the Home Builders. The litigation between Home Builders / Land Developers and the
Group of Individual Persons who have booked homes under the Scheme of Pradhan
Mantri Awas Yojana (Urban) is not of much benefit to the individual persons and they
fail to get any substantive remedy in such litigation and instead the problems which were
 faced by these litigators increases. It is therefore recommended that litigation are to be
avoided between the individual persons who have booked homes under the Scheme of
Pradhan Mantri Awas Yojana (Urban) and the Home Builders / Land Developers
assigned with the task of construction work. The problems and agony of the individual
persons who have booked homes under the Scheme of Pradhan Mantri Awas Yojana
(Urban) is because of the defects of the Scheme and mostly not because of fault on the
part of the Home Builder / Land Developer. The individual persons who have booked
homes under the Scheme of Pradhan Mantri Awas Yojana (Urban) must be made aware
about the fact that the Government is not paying the appointed Home Builder / Land
Developer as per the Memorandum of Private Public Partnership.

 It is recommended that Home Builders / Land Developers who have who have entered
into Public Private Partnership with the Ministry of Housing and Urban Poverty
Alleviation for Construction of Dwelling Units under Pradhan Mantri Awas Yojana
(Urban) should issue notices to the individual persons who have books homes under the
Scheme of Pradhan Mantri Awas Yojana (Urban). The Land Developers / Home Builders
should clearly inform in such notices about failure regarding disbursement of funds by
the Government and such notices must be sent by Registered Post with
Acknowledgement Due. If such notices are sent then it will prevent unnecessary
litigations between the Group of Individual Persons who have booked homes under the
Scheme of Pradhan Mantri Awas Yojana (Urban) and the concerned Home Builder /
Land Developer.

 It is recommended that Government should appoint panel of independent auditors from

Chartered Accountants having more than ten years of experience and are having private
practice. The panel of Chartered Accountants is to be given the duty of taking decision
regarding approving and sanctioning funds to the Home Builders / Land Developers and
also regarding release and disbursal of funds to the Home Builders / Land Developers
who are involved in construction of Dwelling Units as per the Scheme Guidelines.

C: CONCLUSIONS:
The Ministry of Housing and Urban Poverty Alleviation under Central Government
which is having its office at New Delhi and in charge of implementation of the project is
failing to have proper control over the functions of the bodies working in the Scheme of
Pradhan Mantri Awas Yojana (Urban) at State Level, Divisional Level and City Level. It
means that the Ministry of Housing and Urban Poverty Alleviation has failed to supervise
the working of Maharashtra Housing and Area Development Authority and also failed to
supervise the working of the Pune Municipal Corporation. The officials of the Ministry of
Housing and Urban Poverty Alleviation visit the project sites at final stage of its
completion and therefore there is lack of physical presence of the officials of Ministry of
Housing and Urban Poverty Alleviation in the State of Maharashtra. It is observed that
the officials of Ministry of Urban Poverty Alleviation are online keeping supervision in
the projects at Pune City. The supervision is done through internet which is very
unsuitable method of keeping supervision especially in the context of Real Estate
Industry. It is almost impossible to keep supervision and keep track of progress in
Construction Work through electronic mode or through the medium of internet. The work
of keeping track of progress in Construction Work and examination of the quality of
construction work at various level of construction is completely field work but the
Ministry of Housing and Urban Poverty Alleviation is doing the same across internet
using some special software. The expertise Civil Engineers who do not have any
association with governments but are highly experienced in doing housing project are of
the opinion that it is not possible to keep track of progress in Construction Work and to
examine the quality of construction work at various level of construction without being
physically present at the construction site. The Ministry of Housing and Urban Poverty
Alleviation did not also appoint any private independent agency for this purpose. The
Ministry of Housing and Urban Poverty Alleviation is presently receiving strong
criticism for Civil Engineers and Real Estate Experts for the above stated reason.

The Ministry of Housing and Urban Poverty Alleviation is supposed to be guided by the
principle “Housing for All within the year 2022” and therefore it must work in such a
manner so that housing projects under Pradhan Mantri Awas Yojana (urban) are
completed very fast. The Ministry of Housing and urban poverty Alleviation must offer
incentives to the officials of Maharashtra Housing and Area Development Authority and
also to the officials to the Pune Municipal Corporation in every housing project in interest
of quick completion of housing projects which are supervised and regulated by the
officials of Maharashtra Housing and Area Development Authority and Pune Municipal
Corporation. It is actually the officials of the Maharashtra Housing and Area
Development Authority and Pune Municipal Corporation who are doing timely
inspections at the construction sites. If incentives are paid to them then they will take
interest to pass requisite orders and enforce necessary means upon Home Builders / Land
Developers so that quality construction work is done at project site using quality building
materials. If proper incentives are offered to the officials of Maharashtra Housing and
Area Development Authority and Pune Municipal Corporation these officials will take
initiative for quick issuance of payment clearance certificate and construction fitness
certificates in cases where Home Builders and Land Developers deserve such certificate.

The Ministry of Housing and Urban Poverty Alleviation must work hard for ensuring
better coordination between National Housing Bank and Ministry of Housing and Urban
Poverty Alleviation. The better coordination will result into timely disbursal of requisite
funds from the National Housing Bank and which ultimately contribute towards making
the Scheme of Prime Minister Awas Yojana (Urban) completely functional. It is needless
to say that the Scheme is partially functional at present. The Scheme of Prime Minister
Awas Yojana (Urban) can never become successful without proper coordination between
National Housing Bank and the Ministry of Housing and urban poverty Alleviation.

It is therefore concluded that Scheme of Pradhan Mantri Awas Yojana (urban) will gain
popularity as a scam and will be considered as wastage of public money if corruption and
defects involved in the Scheme are not removed. It is also true that the Scheme of
Pradhan Mantri Awas Yojana (Urban) can become grand success and can highly benefit
the people of Lower Income Group and Middle Income Group if the Scheme is made
devoid of defects and corruptions. The propositions regarding conditions for making this
Scheme a success can be clearly concluded from the critical analysis which is done in this
Research Work.