The government has received complaints of banks either not sanctioning or delaying disbursement to applicants of the Credit Linked Subsidy Scheme (CLSS) under the Pradhan Mantri Awas Yojana-Urban, Union Housing and Urban Affairs Minister of State (independent charge) Hardeep Singh Puri admitted in the Rajya Sabha on Wednesday.

Under the scheme, applicants of economically weaker section (EWS), low income group (LIG) and middle income group (MIG) can get subsidies on the interest to be paid on housing loans.

Replying to a question from BJP MP T.G. Venkatesh, the Minister admitted that “some complaints have been received about Primary Lending Institutions (PLIs) not sanctioning of credit linked subsidy or delaying the subsidy under CLSS component of PMAY-U”.

He added that the Ministry had reviewed the issues that had arisen with the two nodal agencies — National Housing Bank and Housing and Urban Development Corporation Ltd. (HUDCO) — and put in place a “grievance redressal mechanism”.

So far, subsidy of ₹14,482 crore had been disbursed to 6.43 lakh beneficiaries under CLSS.

The Minister said the complaints against the banks were sent to the nodal agencies, which take up the grievances with the banks. The agencies had sensitised the banks about implementation of the scheme through training, and State-level bankers committee meetings.