DDA increases price of residential plots by over 100 times

If beneficiaries of the jinxed Rohini Residential Scheme thought the allotment letter by the Delhi Development Authority (DDA) was to end their woes, a rude shock is awaiting them.

The DDA has allegedly increased the price of residential plots by over 100 times while issuing demand letters. The successful persons are feeling cheated as the DDA is charging them Rs.14,120 per square metre of land under the LIG category against Rs.100-200 per square metre offered in 1981.

The recipients allege that the price offered in DDA’s brochure in 1981 was a “contract” with the applicants and the demand letter issued at the current market price is a rude shock for them.
There are four plot categories- 26 square metres (at Rs.100 per square metres), 32 square metres (Rs.125 per square metres), 60 and 90 square metres (both Rs.200 per square metres).

However, the prices for these categories, as mentioned in the demand letters, is Rs.11,252 per square metres (26 square metres), Rs.14,120 per square metres (32 square metres) and Rs.23,252 per square metres (both 60 and 90 square metres).

The DDA had recently issued allotment-cum-demand letters to nearly 11,000 applicants following directives of the Supreme Court.

The receivers rue that they had to wait for 33 years to get the allotment letter but the increased price has stunned them as the scheme brochure had clearly mentioned the cost of land.

Rahul Gupta, petitioner for the applicants of the Rohini Residential Scheme, said: “During a debate in the Lok Sabha on December 5, 1983, the then minister for works and housing Buta Singh said that the price given by DDA will be the same as decided on the date of registration. He had also assured that the Rohini scheme will be completed within the promised time of five years.

However, the DDA has increased the plot prices.” The DDA, however, claims that rules permit the agency to revise residential property rates.

DDA vice-chairman Balvinder Kumar said: “The rules pertaining to allotment of plots permit us to charge the beneficiaries at existing rates. The DDA is well within law while increasing the prices of residential plots under various categories.”

Meanwhile, Rahul Gupta also alleged that despite deciding to pay eight per cent interest on earnest money deposited in 1981, the DDA has been paying only five per cent.

He alleged: “While rolling out the scheme, DDA had promised to give interest at seven per cent on deposits made by applicants.

But, in June this year, the authority decided to increase the interest rate to eight per cent. However, contrary to it, DDA has calculated interest at five per cent as shown in the demand letter.”