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DDA has liabilities of over ₹10k-cr due to ‘mismanagement’, says Delhi LG
The LG, who is also the chairman of the land-owning agency, also shared data in his tweet, showing that DDA has accumulated loan liabilities of ₹8,915 crore in the last five years (between the financial year 2016-17 and 2021-22).
State Lieutenant Governor VK Saxena on Thursday sought suggestions from the public to make the Delhi Development Authority (DDA) “viable”, arguing that the land-owning agency has liabilities of over ₹10,000 crore due to “mismanagement”.
“While DDA are owners of one of costliest & largest chunk of real estate in the world, mismanagement has led to its liabilities exceeding ₹10k Cr. Let’s resolve to make DDA viable. Your suggestions & participation will make it happen. #ForABetterDelhi,” the LG tweeted on Thursday.
The LG, who is also the chairman of the land-owning agency, also shared data in his tweet, showing that DDA has accumulated loan liabilities of ₹8,915 crore in the last five years (between the financial year 2016-17 and 2021-22). The tweet also showed that DDA has a cash deficit of ₹3,209.14 crore.
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According to the data given in the tweet, during the same period, DDA’s income was ₹3,578.69 crore while the expenditure was ₹6,787.83 crore.
When contacted, DDA officials refused to comment on the tweet.
According to senior officials, who are aware of the matter, the land-owning agency has been incurring losses due to its unsold inventory of close to 30,000 flats. Since 2010, the DDA has been struggling to sell its flats, especially in Narela, they said.
The DDA wgets revenue in two accounts—Nazul (from land-related transactions) and in general administration (from sale of housing units etc). The income from Nazul properties goes to the central government. The DDA has taken a loan from the Nazul account for day-to-day functioning and projects for the past five years, the officials said who asked not to be named.
“They have not been able to sell the flats in successive housing schemes. The LG has taken a serious view of the situation and asked the DDA to find ways to monetise unsold inventory of flats,” said a senior official.
There are multiple for the flats not being sold, ranging from cost to the location to the lack of infrastructure. “But there is a need to relook at the strategy and plan better,” the official said.
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In the budget for FY 2022-23, the DDA, which is currently the main housing developer in Delhi, has allocated ₹2,543 crore for the completion of ongoing projects.
According to senior DDA officials among the liabilities of the agency are a large inventory of unsold flats in Narela, one of the three sub-cities planned by the authority. The DDA allocated ₹400 crore for the development of the Metro corridor to provide better connectivity, which is a pressing concern. The land-owning agency has decided to pay the Delhi Metro Rail Corporation ₹1,000 crore for the project, the officials said.
