DDA puts rider on flats; ownership to come only after 5 years

New Delhi: Ahead of rolling out a major housing scheme under which around 26,000 flats will be on offer, Delhi Development Authority has proposed to approve ownership of flats only after five years of possession, primarily to keep away middlemen from the allotment process.

DDA Vice chairman Balvinder Kumar said the proposal has been mooted to discourage speculative investment and keep away the middlemen who often sell the flats at higher rates after getting possession.

"We only want genuine people to buy our flats, and not those who will purchase the property and then sell it at higher market prices. People who really need such flats should get it. And that is why we have proposed the five-year duration clause. We want the process to be fair," Vice Chairman, DDA, Balvinder Kumar said.

The proposal is yet to be approved by Lt Governor Najeeb Jung, who is the chairman of the DDA.

"The idea is to keep away middleman's intrusion soon after the allotment and also to make sure we do not attract owners who sell away properties for immediate benefits. Allottees would be handed over conveyance deeds only after they have lived in those houses for five years," Kumar said.

The DDA Housing Scheme 2014 which was to be introduced by July end is now likely to be announced sometime in August.

"The Lt Governor has to approve the date. As soon as he makes the approval, we can announce it," he said.

According to the scheme, DDA will offer over 26,000 flats across various categories with most of them being built with "green technology".

While 24,000 flats will be low-cost one-room apartments, the remaining 2000-2,500 flats will be available across LIG, MIG and HIG categories.

"The houses will be spread across Rohini, Narela and Dwarka and will be priced from Rs 14-15 lakh to Rs 1 crore," Kumar said.

Source: http://zeenews.india.com/business/realestate/latest-news/dda-puts-rider-on-flats-ownership-to-come-only-after-5-years_104991.html