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DDA move creates panic among defaulter allottees

Staff Reporter

Agency decides to act tough with allottees who have defaulted on payments despite being served with two notices over the past 5 years

NEW DELHI: The Delhi Development Authority's decision to warn the defaulting allottees of hire-purchase flats that their allotments would stand cancelled if they do not pay up all their outstanding dues has created panic among the defaulters in the Capital.

After years of wait, DDA has finally decided to act tough and recover its dues worth nearly Rs 800 crores from about 60,000 allottees who have defaulted on payments despite being served with two notices over the past five years.

So far, DDA has allotted nearly 175,000 flats under the hire-purchase scheme to people under the lower income group (LIG) and middle income group (MIG) categories. However, many of these allottees have over the years not paid their instalments as also the penalties levied on them. This prompted DDA to come out with a public notice on June 20 in which it stated that the allottees who had defaulted on payments of instalments and penalties for flats occupied by them are being given one last chance now to pay up.

The notice requested all hire-purchase allottees to clear all their outstanding dues by July 31 and warned that "enough opportunity has been given" and the allotment of flats of all those who do not clear their dues would be cancelled.

While the notice will have an immediate bearing on about 60,000 flats whose owners have not cleared their dues despite two reminders, notices have also been despatched to another 70,000 flat owners who have not cleared their dues. Incidentally, whenever there is a delay in payment by six months, DDA puts the concerned allottee in the list of defaulters.

DDA Member Mahabal Mishra said people should deposit the due amounts speedily as Rs. 800 crores of DDA -- which could go into developmental activities -- are lying blocked due to non-payment. He also said that the issue should have come up in the DDA Authority meeting as the public notice had created panic among all allottees.

Stating that some more time should be given to the allottees to pay up their dues and arrange for finances, Mr. Mishra said he would be raising the issue with Union Minister of State for Urban Development Ajay Maken.

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