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This is an archive article published on November 13, 2009

SC/ST allottees may not be able to sell DDA flats for 15 yrs

The Delhi Development Authority has proposed that the allotments of flats to the Scheduled Castes and Scheduled Tribes be made with a precondition that they will not be able to sell them for 15 years.

The Delhi Development Authority (DDA) has proposed that the allotments of flats to the Scheduled Castes and Scheduled Tribes be made with a precondition that they will not be able to sell them for 15 years.

A proposal it made to the Urban Development Ministry requests permission for allotment to SC/ST categories only on leasehold,thus putting a check on the resale.

The proposal was submitted immediately after the draw of the 2008 Housing Scheme held on December 16,2008. The allotments had been delayed by a year,owing to irregularities detected later. The case is still under investigation and the idea was to avoid a similar situation in the future.

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“Essentially,the DDA’s suggestion is to insert a clause in the allotment procedure so an SC/ST candidate will not be permitted to sell the house for the next 15 years,” said an official.

Since flats are allotted by the DDA on a freehold basis,successful allottees are free to sell their flats as and when they choose. “This leads to speculative applications by people who sell the flat immediately after allotment for a profit,” an official said.

In case of SC/STs,the DDA maintains,this happens on a regular basis as they have a priority quota and stand a better chance of getting an allotment.

“This is what happened in the applications that came in last December,” the official said. Investigations into that draw revealed that a cartel of property dealers coaxed people from the SC/ST category — many of them residents of Rajasthan — to apply for the draw. The modus operandi,the official explained,was that the candidates merely signed the application. The property dealers made the payment for the flat on their behalf,and if they were successful in the draw,sold the flats for a profit.

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The Economic Offences Wing of Delhi Police is still investigating the case and nine people have been arrested so far.

Referring to the DDA’s proposal,the official said: “This is not a draconian measure. It will help us to curb exploitation of SC/ST candidates at the hands of speculative buyers.”

If a successful allottee in the SC/ST category wants to transfer the flat’s ownership in the name of a relative,“then of course,we will make provisions to allow that,” he added.

The DDA is also mulling whether it should ask the ministry to allow only the residents of Delhi and NCR to apply for future draws.

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“Since Delhi is a Union Territory,people from any part of the country can apply,but not all of them intend to stay in the allotted houses.” the official said. “We have been discussing this issue for a while.” While a proposal along these lines is yet to be made,officials said the matter might be discussed with the ministry.

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