1,600 per sqft for 2-bedroom flat: The economics of illegal ‘cottage industry’
Times of India | 19 March 2024
Kolkata: The ‘cottage industry’ of illegal buildings in the Garden Reach-Metiabruz belt thrives on its own cash-economy. The G+4-storey building which collapsed on Monday had four flats on every floor. The promoter charged Rs 1,600 per square feet for each 500 sqft, two-bedroom flat with a toilet and a small kitchen. The price of these flats is pegged at Rs 8 lakh. But there is a catch — the buildings are always bought and sold in cash, leaving no trail.
“Very few of these buildings adhere to construction norms. If they do, it will impact prices. Anything more than Rs 10 lakh and there would be no buyer.
In this case, Md Wasim said he did not find enough customers for the flats he intended to sell on the first three floors,” an officer said.
Wasim reportedly told cops that he had a “developers’ agreement” with landlord Nasir Ahmed. As part of the deal, he had to hand over all four top-floor flats to Ahmed but he could sell the rest. He said he was hurrying to hand over the flats to the landlord and in their haste, construction norms were ignored.