Sri Vijaya Puram, June 18: The issue of loan repayment by beneficiaries of the Pradhan Mantri Awas Yojana (Urban) housing project at Prothrapur has come under fresh scrutiny after Member of Parliament Bishnu Pada Ray sought immediate suspension of Equated Monthly Instalment (EMI) recoveries from beneficiaries whose flats are yet to be completed and handed over.
In a representation addressed to the Regional Manager of Canara Bank, Kolkata-III, the MP raised concerns over the reported recovery of EMIs from beneficiaries despite the housing project remaining incomplete.
The matter affects 213 Economically Weaker Section (EWS) beneficiaries of the PMAY (Urban) project in South Andaman, many of whom have reportedly begun facing financial difficulties due to deductions being made from their bank accounts before receiving possession of their allotted dwelling units.
According to the MP, earlier discussions involving the Sri Vijaya Puram Municipal Council (SVPMC), the National Buildings Construction Corporation (NBCC) and beneficiary representatives had led to a common understanding that EMI recovery would begin only after completion of the project and formal handover of flats.
The discussions had also reportedly included provisions relating to financial liabilities arising from delays in project execution. It was understood that any additional interest burden resulting from delays would either be borne or suitably subsidised by the agencies responsible for implementation and execution of the project.
However, despite these understandings, beneficiaries have reportedly informed authorities that loan instalments are already being deducted from their accounts.
The MP pointed out that SVPMC had previously communicated with the bank through letters dated April 13 and April 23, 2026, requesting deferment of EMI recovery due to delays in project completion.
According to available information, the housing project is now expected to be completed by December 30, 2026, extending the waiting period for beneficiaries who had anticipated earlier possession of their homes.
Highlighting the difficulties faced by residents, Ray stated that many beneficiaries continue to live in rented accommodation while simultaneously paying loan instalments for homes they have not yet occupied.
He argued that such a situation places an excessive financial burden on economically weaker families and undermines the objective of affordable housing initiatives intended to support low-income households.
The MP further observed that beneficiaries should not be compelled to bear the consequences of delays attributed to implementing or executing agencies.
In his communication to the bank, he requested immediate suspension of EMI deductions until the beneficiaries receive possession of completed housing units.
He also urged that any financial implications arising due to delays should be addressed by the agencies involved in the execution of the project, namely SVPMC and NBCC, rather than being passed on to beneficiaries.
The issue has broader implications for affordable housing implementation in the islands, where delays in infrastructure projects can significantly affect intended beneficiaries.
Housing experts note that premature loan recovery in delayed projects often creates financial stress for low-income households, especially when beneficiaries continue to incur rental expenses while servicing housing loans.
Seeking higher-level intervention, the MP has also forwarded copies of his representation to the Union Ministry of Housing and Urban Affairs.
He has requested the Ministry to examine the matter, intervene where necessary and conduct an inquiry into the reasons behind the prolonged delay in execution of the PMAY (Urban) project.
Copies have also been shared with the Chief Secretary of the Andaman and Nicobar Administration, the Chairperson of SVPMC and affected beneficiaries.
The development is likely to bring renewed attention to the status of the Prothrapur PMAY housing project, with beneficiaries now awaiting both completion of the housing units and a decision regarding the suspension of EMI recoveries until possession is formally granted.
