DDA to refund registration money within a month

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The DDA has decided that unsuccessful applicants, who don’t get a flat in the draw of lots for the 2014 housing scheme, will be refunded the registration amount of Rs. 1 lakh within one month.

Earlier the DDA used to take at least three months to refund the money.

In its housing scheme’s brochure, the land development agency had clarified that it would not pay any interest to applicants on the registration money for up to three months.

The registration amount is Rs. 1 lakh, except for those applying under the Economically Weaker Sections (EWS) category, for which the registration amount is Rs. 10,000.

The period of one month will be counted from the date of closure of the scheme, October 15. This means that applicants will get their money back within November 15, instead of February.

Also, those who have taken the amount on loan from banks might have to pay lesser interest as the money would be transferred to the bank directly within a month.

The DDA generates a substantial amount of money from the registration amount it collects through interest.

The money is kept in a bank as fixed deposit and DDA earns interest from it. This amount is used for DDA’s housing and other projects.

It was DDA vice-chairman Balvinder Kumar who hit upon the idea of shortening the period of refund. “Earlier the decision was to refund the money within three months, but I thought why should people unnecessarily keep their money deposited and lose interest? That is why I have decided that now the amount shall be returned within a month,” Kumar told Hindustan Times.

According to the housing scheme’s brochure, DDA is supposed to pay a simple interest at the rate of eight per cent per annum to unsuccessful applicants if the amount is refunded after a period of three months.

The housing scheme closes on Wednesday at 5pm and DDA expects to receive about seven lakh applications for the 25,034 flats on offer.

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