The Cabinet has decided to abolish the special concessionary payment scheme offered to former Members of Parliament (MPs) for purchasing houses at the Viyathpura Housing Complex.
The scheme was first introduced in July 2022, when approval was granted to provide 101 housing units on a one-year rental basis to MPs who had lost their homes during the May 9, 2022 unrest. Two years later, in July 2024, following appeals from MPs, Cabinet permitted the sale of these units at discounted rates.
While the houses are normally priced between Rs. 15.5 million and Rs. 22 million for the public, MPs were offered them at reduced prices ranging from Rs. 13.34 million to Rs. 18.21 million. Under this arrangement, MPs were required to pay 25% upfront, with the remaining balance to be settled over 15 years at a 10% annual interest rate.
By December 31, 2024, 29 MPs had already made the advance payments. However, the Urban Development Authority (UDA) reported a financial loss of over Rs. 92 million as a result of the scheme.
Given these concerns, the Cabinet has now decided to abolish the concessional payment plan with immediate effect. The government stated that, subject to agreement from the MPs involved, the houses will instead be sold to the general public at the concessionary prices previously approved.
