BY MICHAEL FISHER | NT NETWORK
PANAJI: Despite the fact that prices of building materials, mainly cement and steel, have dipped considerably over the past three years, some 200 to 250 row house buyers have been forced to shell out an additional 30 to 40 per cent more to the original amount.

In March 2007, the Goa Housing Board had advertisement luring buyers for allotment of row house it planned at Fatorda and other places. The buyers are now left perplexed and shocked as they have to shell out about 30 per cent to 40 per cent more from what was published in the advertisement. From the original amount of Rs 15.53 lakh it was increased to Rs 19.60 lakh in 2008. In June 2010, it has been increased to Rs 21.43 lakh.
Livid Mr Nelson Fernandes, a buyer said, “We feel helpless and cheated. If we default in our payments, we would have to forfeit or pay a heavy fine.” Displaying the advertisement to The Navhind Times, Mr Fernandes said the advertisement clearly states that the row houses in three categories are available as follows: A Type unit cost Rs 15.53 lakh; B Type unit Rs 15.12 lakh and C Type unit Rs 16.67 lakh.
The news of the Goa Housing Board’s plans to build affordable houses was reported in all the local newspapers. The then housing minister, Mr Manohar Azgoankar had gone on record saying that they were constructing row houses only  for Goans at affordable prices and the rates would  be much lower when compared to what private builders offer. 
Mr Azgoankar had also assured the buyers that the project would be completed in 15 months. There was a rush for booking at Rs 10,000 as fee.
A year later in 2008, when Francisco Xavier Pacheco -- now beleaguered -- took the charge of housing portfolio the prospective buyers received a shock. A letter was sent to them to be present to select row houses of their choice on first come first served basis. In April of the same year, they received an official allotment letter stating that the row house would cost  Rs 19.60 lakh. They were told not to argue as it was the decision of the board, with Pacheco as the head. They were threatened that their bookings would be cancelled and Rs 10,000 refunded. With no alternative they remained stoic.
“Based on this allotment letter from the Housing Board most of the allottees availed housing loans from banks,” Mr Fernandes said. In June, 2010, the allottees received yet another letter from the Housing Board managing director, Mr Melvyn Vaz saying that the price has been increased from Rs 19.60 lakh to Rs 21.43 lakh.
Today, four months past the deadline, Mr Agarwal is struggling to pay the equated monthly installments of Rs 39,040 (on a loan of Rs 40 lakh) along with the monthly rent he is paying for his current residence. As per the buyer-seller agreement signed by Mr Agarwal, the developer is expected to pay a penalty of Rs 5 per sq ft for every delayed month, which works out to be Rs 6,750 for his 1,350 sq ft of apartment. The developer is not paying any penalty to him or any other allottees.
Mr Fernandes along with 16 allottees gheraoed the Goa Housing Board office recently questioning why should they pay the increased amount when the allotment letter clearly states that the balanced payment of 70 per cent must be paid on completion of the house.
The Goa Housing Board has a well-known and experienced architect, Mr Francis Dias. But they have employed a private architect from Ponda.
Conditions in the housing market have improved markedly due to the decline in cement and steel prices. Improved affordability, mostly because of lower prices of cement and steel have dropped significantly in home prices, have brought out buyers in greater numbers than expected.