DDA to pay bank's interest on registration money
28 Jun 2014 4:23 AM IST
A good news for home buyers in the city. Now, you need not worry about the registration money you deposit with Delhi Development Authority for your dream home as the authority has decided to pay the interest rate almost equal to what nationalised banks pay on your terms deposits. As the new interest rates will be applicable to all the schemes-residential, commercial, industrial and institutional; the authority expects the initiative would be a booster for its future schemes.
‘The initiative will restore the confidence of investors in the future real estate and infrastructure schemes of DDA, booster to attract investment in our schemes and helpful to instil professionalism in the authority by making it responsible to deliver on time,’said Balvinder Kumar, vice chairman of DDA.
The board meeting of DDA on Thursday decided to pay interest rate of 8% per annum on the registration money after three months of the last date of closure of the any scheme in future.
The new interest rates will also be applicable for ongoing schemes,’ said Balvinder Kumar vice chairman of the authority. Presently, State Bank of India pays interest @ 7.5 percent per annum on deposits on 91-179 days, 7.0 % on 180-210 days, 7.5 % on 211- one year, 9.0 % on 1-2 years and 8.5 % on term deposits of five years or more.
SBI pays 8.7 % interest on Public Provident Fund (PPF) deposits. The authority was earlier paying a nominal 5 % of interest on the advance deposits it was getting from investors on the name of registration money. As per DDA rules a person must deposit 10 percent of the total cost of the flat/ home/plot as registration money to take part in lottery or bidding in the real estate schemes of DDA.
Not only that, the authority has also decreased the interest charged to home buyers and investors on the delayed payment of money after allotment. ‘In case of delay in receipt of disposal cost of flats after 90 days from the date of demand-cum-allotment letter, compound interest @12% will be recovered from the allottees,’ informed Kumar. The authority was earlier charging 15% compound interest on delayed payments. The scheme will not be applicable on old settled cases.
In another major decision the authority also approved one time rebate in surcharge to such consumers who pay their outstanding bills in instalments but within a certain time frame.
The rebate, proposed, was 50% in cases of bills that are paid within three months, 40% in case of bills paid within six months and 30% if bills are paid within nine months.
‘The initiative will restore the confidence of investors in the future real estate and infrastructure schemes of DDA, booster to attract investment in our schemes and helpful to instil professionalism in the authority by making it responsible to deliver on time,’said Balvinder Kumar, vice chairman of DDA.
The board meeting of DDA on Thursday decided to pay interest rate of 8% per annum on the registration money after three months of the last date of closure of the any scheme in future.
The new interest rates will also be applicable for ongoing schemes,’ said Balvinder Kumar vice chairman of the authority. Presently, State Bank of India pays interest @ 7.5 percent per annum on deposits on 91-179 days, 7.0 % on 180-210 days, 7.5 % on 211- one year, 9.0 % on 1-2 years and 8.5 % on term deposits of five years or more.
SBI pays 8.7 % interest on Public Provident Fund (PPF) deposits. The authority was earlier paying a nominal 5 % of interest on the advance deposits it was getting from investors on the name of registration money. As per DDA rules a person must deposit 10 percent of the total cost of the flat/ home/plot as registration money to take part in lottery or bidding in the real estate schemes of DDA.
Not only that, the authority has also decreased the interest charged to home buyers and investors on the delayed payment of money after allotment. ‘In case of delay in receipt of disposal cost of flats after 90 days from the date of demand-cum-allotment letter, compound interest @12% will be recovered from the allottees,’ informed Kumar. The authority was earlier charging 15% compound interest on delayed payments. The scheme will not be applicable on old settled cases.
In another major decision the authority also approved one time rebate in surcharge to such consumers who pay their outstanding bills in instalments but within a certain time frame.
The rebate, proposed, was 50% in cases of bills that are paid within three months, 40% in case of bills paid within six months and 30% if bills are paid within nine months.
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