NEW DELHI: Delhi Development Authority (DDA) has decided to levy a
penalty, ranging from 25-100% of the earnest money, to ensure only
serious buyers apply for its new housing scheme that is likely to be
announced in mid-June.

Officials said the step was being taken to avoid a repeat of what happened in 2014 when 50% of the flats were returned by allottees. However, resident welfare associations are not happy with the land-owning agency’s decision.

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,” said J P Aggarwal,
principal commissioner, land disposal and housing, DDA. 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,” said Aggarwal.

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.

Resident welfare associations are opposing the penalty clause. Last
year, Delhi Residents’ Welfare Associations Joint Front, an umbrella
body of RWAs under the Bhagidari scheme, had written to then LG Najeeb
Jung in this regard. “This is not a valid clause. If a person has a
legitimate reason, then why should he be made to pay a penalty?” said
Pankaj Agarwal, general secretary of the organisation.

S B Singh, a member of Lajpat Nagar III RWA, said that DDA doesn’t
allow people to give floor-wise preference. “If an old couple is
allotted a third floor in a building that doesn’t have a lift, then why
should they be made to pay a penalty when they don’t want the flat? DDA
only allows people to give preference for the location,” said Singh.