Pune: A delay caused by legal proceedings has forced the Pimpri-Chinchwad Municipal Corporation (PCMC) to cancel the construction of a 934-flat housing project at Ravet under the Pradhan Mantri Awas Yojana (PMAY). The project will now be proposed for inclusion in the scheme’s second phase, potentially leading to a significant cost increase for the flats.

The housing project, initiated in 2019 on two hectares of land in Ravet, had a budget of ₹88.25 crore, with Infra Construction as the contractor. The project aimed to be completed in two-and-a-half years.

However, work was halted in October 2020 after a local resident filed a petition in the Bombay High Court, objecting to the land acquisition process. While the courts cleared the project in October 2024, the four-year delay and escalating costs have rendered the initial plan unviable.

With PMAY’s deadline of December 2024 approaching, the corporation decided to cancel the project and has written to the Maharashtra Housing and Area Development Authority (MHADA) to include the housing scheme in PMAY’s second phase. A new detailed project report (DPR) will need to be prepared, and fresh approvals, consultants, and contractors will be required.

The project’s cancellation has created uncertainty for the 934 beneficiaries selected through a lottery process in February 2021. These beneficiaries had paid a registration fee of ₹5,000. With the revised plan, flat prices are expected to double, placing additional financial burdens on the beneficiaries.

To address the concerns, PCMC is exploring the option of allocating flats from the EWS (Economically Weaker Section) housing project in Kiwale to the affected beneficiaries, said Additional Commissioner Chandrakant Indalkar.