29 former MPs paid deposits for Viyathpura houses

Previously, the Cabinet had approved the discontinuation of the concessional payment scheme that was offered to former MPs.

In July 2022, the Cabinet initially authorized the allocation of 101 housing units on a rental basis for one year to MPs who had lost their residences during the May 9, 2022 unrest. However, in July 2024, following requests from the MPs, approval was granted to sell these units at discounted prices.

While the market value of these houses ranged between Rs. 15.5 million and Rs. 22 million, MPs were allowed to purchase them at concessionary rates ranging from Rs. 13.34 million to Rs. 18.21 million. The scheme required a 25% upfront payment, with the remaining balance payable over 15 years at an annual interest rate of 10%.

As of December 31, 2024, 29 MPs had made the 25% advance payment. However, the Urban Development Authority (UDA) reported a loss of Rs. 92.126 million as a result of the concessionary pricing model.

The Cabinet has now officially abolished the concessional payment scheme, effective immediately. If the MPs involved consent, the housing units will be offered to the general public at the previously approved concessionary prices.

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