In order to ensure that only serious buyers can apply for the Delhi Development Authority’s new scheme, DDA has decided to levy a penalty, ranging from 25-100% of the earnest money, & the new scheme is likely to be announced in mid-June. This step has been taken to avoid the repeat of what happened in 2014 when 50% of the flats were returned by allottees. It can be a good sign to the serious buyers but, the resident welfare associations are not happy with the land-owning agency’s decision.
In an attempt to attract serious buyers, DDA had decided to increase the earnest money for MIG and HIG flats to Rs 5 lakh. But it was reduced to Rs 2 lakh following protests by residents.
DDA officials while explaining the reason behind this step said “it is to discourage people who are not serious about buying the flats. “Our flats are much cheaper than market rates. We have given people the option to go and see the location of the project/flats before applying. This is just to ensure serious buyers apply.”
J P Aggarwal, principal commissioner, land disposal and housing, said “to apply for the housing scheme in which DDA will put up 13,500 flats on sale, people will have to pay Rs 1 lakh for LIG and Rs 2 lakh for MIG/HIG flats as earnest money. No penalty will be levied on the earnest money if an applicant withdraws before the date of the draw of lots. “But they will have to forfeit 25% of the amount if they surrender the flats within 90 days after the draw of lots.”If a person surrenders within three months of issue of the demand letter, then he/she will lose 50% of the earnest money. “After this, there would be no exemption. If a person fails to pay the money for the flat allotted to him/her, the entire earnest money will be forfeited.