Buy DDA flat, but own it 5 years later

NEW DELHI: For those waiting for DDA to announce its biggest housing scheme this August-end, there is a caveat that the Authority wants to introduce. For the first time, the Authority has proposed to withhold ownership rights to successful allottees for five years. This proposal is part of the housing scheme that DDA has sent to the Delhi LG, who is the chairperson of the authority, for approval. While the legal nuances of the proposal are being developed by the Authority’s legal department, the senior DDA leadership is understood to be firm in its stand to not award property rights to those who come out successful in the draw.

The rationale behind this proposal is to deter speculators from affecting property prices. Senior officials say that they have received complaints about middlemen getting involved in the process of allotment right after the results of draw are introduced. “Despite our strict provisions to ensure that only the successful allottees are awarded the houses, we have come to know of several instances of speculators and middlemen meddling with the allotment. Our aim is to provide affordable accommodation to people and we make sure that the cost of our flats is several times cheaper than the prevalent market rates. We want to make the allotment properties absolutely free and fair,” said a senior DDA official.

The successful applicant to the scheme will be given allotment and possession letters which will allow the allottee to stay in the flat. After five years, the allottee will be able to execute conveyance deed of his apartment and get full freehold rights of their apartment, after which the allottee will be able to legitimately put the flat up for sale in the market. When asked, the DDA vice-chairperson, Balvinder Kumar affirmed the proposal. “Yes we have proposed to withhold giving ownership rights to the successful allottees to avoid speculation and make sure that the process is fair to everyone.” DDA is expected to announce its upcoming housing scheme by the end of August this year. The scheme will have 26,000 flats in all, of which 24,000 flats will be one-room sets meant for Low Income Group section. Right after the conclusion of this housing scheme, DDA plans to hold draw of another 700 single room flats for the poorer section of the society. Sources say that the flats will be sold for Rs 5-6 lakh each. Applicants to this housing scheme will have to furnish income certificate and fulfill requirements as laid by DUSIB. Registrations to these flats will be Rs 10,000 each.

Along with the urban development ministry’s directive to provide more housing for lower and middle class income groups, DDA is trying to balance the demand by high income group (HIG) sections as well. Authority officials say they are still focused towards planning and providing premium Rs 1 crore and above HIG flats in Delhi. On Friday DDA concluded the tender process for construction of over 300 HIG flats in Jasola. The flats will be around 1500 sqm. Tenders for them were issued a couple of months ago.

Source: Times of India
Dated: 26th July 2014

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