As a result, home buyers are losing interest in the scheme with only 60,000 forms sold over 26 days
The Delhi Development Authority's (DDA) newly-launched 2017 housing scheme has hit a snag as the eight banks that it had tied up are not ready to finance the registration fee fearing losses over the forfeiture clause. As a result, home buyers are getting disinterested while many have returned without applying for the scheme.
The scheme has over 12,000 houses on offer across all income categories.
The housing authority on Thursday held a meeting with the concerned banks seeking a solution to the issue. However, they failed to reach a solution.
The banks want the housing authority to remove the clause of 25 percent registration fee being forfeited if the allottee returns the house after his name makes it to the draw of lots.
"We held a meeting with the banks but they showed their inability to finance the registration fee owing to the clause. While some banks said they were making a scheme to partially finance the application fee amount, they were still to finalise it. However, we told them we cannot remove the clause without a notification from the Lieutenant Governor," said JP Agarwal, housing commissioner, DDA.
The DDA has received only 5,000 applications so far while only 60,000 forms have been sold over 26 days since the scheme was launched amid much fanfare on June 30. The last date to submit applications is on August 11.
The number of applications received and forms sold this year is much less in comparison to the 2014 housing scheme. Over 11,000 houses in the new scheme are the flats which were returned in the 2014 housing scheme. In 2014, banks would finance the registration amount on a one-time payment of Rs 5,000.
"We met the banks to exchange ideas on the issue. However the authority will take a decision on the matter once we see the number of applications received at the fag end since more people apply in the last 15 days. We will be able to decide then if the date for submissions must be extended or not," Agarwal said.
The DDA had this year put a new clause of 25% registration fee being confiscated if houses are returned after the draw of lots in order to make sure that buyers don't surrender the houses and that only "serious buyers" come forward for the scheme.
If allottees return the house after 90 days of issuing the demand letter, 50% of the fee would be cut. If the allottee surrenders the house beyond that time, the entire fee amount will be forfeited.
Meanwhile, officials said, only Central Bank of India has so far agreed on financing the registration amount but with tough conditions.
REGISTRATION FEE
LIG houses : Rs 1 lakh
MIG/HIG houses : Rs 2 lakh
Conditions put by Central Bank of India (which is the only bank ready to finance the registration amount at present)
- The home buyer/customer must be an account holder with the bank
- The Income Tax Returns (ITR) of buyers will be sought to check eligibility for loan
- Buyers will have to produce a guarantor holding an account with the bank in order to get through. The guarantor will promise to pay the loan amount in case the buyer fails to do so
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