Crackdown on EWS Housing Fraud: Ahmedabad Body Slaps ₹1 Lakh Fine, Threatens Title Cancellation for Illegal Renting
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The Ahmedabad Municipal Corporation’s Housing Committee has launched an aggressive crackdown against beneficiaries of government welfare housing who illegally lease out flats allotted under the Economically Weaker Section (EWS) and Low Income Group (LIG) categories.
Under mandatory scheme guidelines, beneficiaries are strictly prohibited from renting out their units for at least seven years post-allotment.
Following widespread evidence of owners commercialising these properties immediately after winning lottery draws, the committee approved stringent penalty provisions on Monday.
The decision signals a strict shift towards zero tolerance for the commercial exploitation of welfare housing meant for underprivileged families across the city.
Phased Penalties and Immediate 90-Day Sealing
The Housing Committee, chaired by Darshan Shah, approved a structured, three-tier enforcement mechanism designed to penalise offenders and deter illegal tenancy:
• First Offence: A flat owner caught renting out the property for the first time will face an immediate ₹50,000 fine. The housing unit will be sealed on the spot and remain locked for 90 days.
• Second Offence: Repeat offenders will be hit with an elevated fine of ₹1 lakh, alongside another mandatory 90-day property seal.
• Third Offence: For persistent violations, authorities will initiate formal legal proceedings in the City Civil Court to permanently cancel the property registration and revoke ownership rights.
"No Political Recommendations Will Unseal Properties": Housing Chairman
Addressing the rampant practice of using political connections to bypass housing enforcement, Housing Committee Chairman Darshan Shah confirmed that unambiguous directives have been issued to field officers for uncompromising execution on the ground.
In past instances, sealed properties were routinely unlocked ahead of schedule following informal interventions or recommendations from influential local leaders.
Shah stated that these loopholes have been entirely shut down, warning that no political influence, VIP letters, or personal references will be entertained to unseal penalised properties before the completion of the 90-day seal period.