To push sales, last date of DDA housing scheme may be extended by 15 days

With just 5,000 applications received till last week for around 12,000 flats up for sale, the Delhi Development Authority is likely to extend the last date for the scheme by 15 days.

The last date for submitting the applications to be eligible for draw of lots is August 11.

DDA had launched the scheme on June 30 with 12,069 flats under which 87 are high-income group (HIG) flats, 404 are two-room middle income group (MIG) flats. The rest 11,197 are one-bedroom lower income group flats (LIG) flats and 384 janta flats.

A senior DDA official said, “An approval for the extension will be sought from lieutenant governor Anil Baijal, who is also the chairman of DDA. DDA shall demand extension by two weeks.”

To encourage prospective buyers, DDA is also in talks with four banks that are likely to come up with loan offers against registration money.

“Central Bank of India, IDBI, Axis Bank and ICICI Banks are likely to come up with loan offers to encourage more people to invest in the scheme,” he said.

For the LIG (lower income group) category, the registration fee is ₹1,00,000 while for middle income and high income group flats, ₹2,00,000 will be charged.

Sources in DDA said that while Central Bank will offer loan of ₹2,00,000 for around ₹8,000 and ₹1,00,000 for around ₹4,000.

However, the loan will only be for people who had accounts with the bank before the announcement of scheme, he said. Other banks are yet to decide the modalities of the loan, he said.

Earlier, most banks that had tie-ups with DDA refused to offer loans due to the forfeiture clause.

If a buyer surrenders his application before the draw date, no money will be deducted from his or her registration fee. If a buyer does so after the draw but before the issue of a demand letter, 25% of the registration fee will be forfeited.

The forfeiture cause states if the flat is surrendered within 90 days of the issue of the demand letter, 50% of the fee will be cut.

Beyond that time, the entire registration fee will be forfeited.

Banks were apprehensive if they give loans to buyers who decide to surrender the money, they may not be able to recover the amount. But, now they are thinking of offering loans to customers who have a good track record with the bank.