Nothing healthy about investments in this Health City!

Y Maheswara Reddy | NT

Bengaluru: Hundreds of people who invested their hard-earned money in residential sites have been running from pillar to post seeking justice as the allotment of sites remain a dream even after paying money a decade ago.

Many people had become members of the Health and Family Welfare Department Employees Housing Cooperative Society Limited (HFWDEHCSL) when the latter offered sites for sale at Health City, IVC (inter village connectivity) Road near Kempegowda International Airport in 2012. The HFWDEHCSL had entered into an agreement with M&M Bangalore Pvt Limited for developing the layout. However, not a single investor has got a residential site till date.

“I and 13 of my friends have paid Rs 9.50 lakh each to the HFWDEHCSL more than a decade ago. My father, being a state government employee, had advised me to buy a site from HFWDEHCSL. I advised my friends to buy sites. Now, we are in a dilemma whether we will get sites allotted in the near future,’’ said Ravikumar T.

Expressing dismay over the inordinate delay in developing the promised layout and allotment of residential sites, Venu P said that he has been waiting for the site allotment since 2013. “I paid Rs 12 lakh for a 60x40 site in the Health City project. I was told that HFWDEHCSL will make arrangements to register the site in my name in 24 months but they have done nothing,’’ said Venu.

The delay in allotment of sites has made people who invested money, lodge a complaint with the Additional Registrar of Cooperative Societies on January 7 requesting him to intervene and help them in getting sites allotted at the earliest. The complaint signed by seven applicants stated that most of the people who invested money are from lower and middle-class families and the money invested in the Health City project did not generate any revenue for them even after a decade.

Meanwhile, Shankar Nayak, president of HFWDEHCSL said that he assumed office a year ago and has been doing everything to expedite the development of the layout. “The problem with the previous managing committee of the HFWDEHCSL is the failure to keep 10 percent of the total amount collected as security deposit. They deposited only 2 percent of the amount as security deposit. Around 80 applicants have availed refund as they have lost jobs due to the pandemic,’’ said Shankar Nayak, adding the developer signed an agreement in 2019 promising to complete the work in 24 months but failed.

However, Muddappa of M&M Bangalore Private Limited said HFWDEHCSL is yet to pay him Rs 300 crore. “Till date, I have received only Rs 179 crore from HFWDEHCSL.’’