Planning to earn a neat profit by selling a DDA flat in case you get lucky in the latest housing scheme? Be prepared to wait for a while.
In its latest housing scheme, the Delhi Development Authority (DDA) is offering 16,000 flats. Speculating on a DDA flat, however, is not going to be easy this time, thanks to DDA's new regulations.
"Many of those who get a flat in the draw of lots, sell it off immediately to earn a good profit without investing much," said a senior DDA official who did not wish to be identified. "Usually property dealers give the allottees a the amount in full, pay the flat's cost themselves and sell it off later at a huge profit."
But not this year.
DDA has introduced a new condition that requires the money to be from the allottee's bank account. Also, at the time of possession, the allottee will have to submit a copy of the bank passbook and certificates.
The income tax department will verify the documents submitted by the allottees and the source of the money has to be disclosed. Even if allottees pay the total amount and all their documents are in order, it will take at least six months for the allottees to sell it.
"All the flats are on freehold basis and people have to take possession after paying the cost of the flat from their bank accounts," said DDA spokeswoman Neemo Dhar. "A certificate from the bank will have to furnished at time of taking possession and the intimation of the same will be sent to the income tax department."
"After taking possession if they sell the flat, they will not be able to get another flat under any other scheme, as the rules do not permit allotment of more than one flat to the same person," she said.