NGO challenges DDA decision to deduct Rs 5,000 from applicants

Barely two days after the Delhi Development Authority (DDA) announced the results of latest housing scheme offering 5238 flats, an NGO on Thursday challenged its reported decision to deduct Rs 5,000 from the amount to be refunded to unsuccessful applicants. Society of Catalysts moved the National Consumer Disputes Redressal Commission, drawing its attention to a report published in an English daily, which said the DDA would refund the money of unsuccessful applicants only after deducting Rs 5,000.
The Society said, "The proposed deduction of Rs 5,000 is against original condition on which the application was invited." The total amount withheld from the 5.50 lakh applicants would be more than half of the total value of all the flats allotted, it said.
The Commission has already issued notice to the DDA on an earlier complaint filed by the same NGO, accusing it of practising "restrictive" and "unfair" trade practices by imposing certain "pre-conditions" on the applicants. The complainant NGO, headed by former Delhi Chief Secretary Omesh Saigal, had alleged that forcing the applicants to pay for the right to participate in the draw for allotment of flats amounted to "restrictive trade practices".
More than 8.64 lakh forms were sold for Rs 100 each and an additional four lakh downloaded from DDA website. A total of 5.12 lakh people submitted the forms along with a bank draft of Rs 1.5 lakh each and finally 5,238 lucky people were chosen for allotment of flats by a draw of lots on December 16.
In its complaint filed in November 2008, the NGO had alleged the applicants had to bear a cost of about Rs 333 crore as interest paid to banks. Terming it as "restrictive and unfair trade practice", Saigal had said that against the flats worth Rs 500 crore DDA has collected a whopping Rs 7,800 crore and was earning interest on applicants' money.
The NGO's plea for an order to the DDA to refund an amount of Rs 6,600 each to the applicants, which they paid for form (Rs 100) and as interest to bank on the Rs 1.5 lakh demand draft (Rs 6,500) and impose punitive damages on the DDA is already pending before the Commission.