6 days ago

MHADA Plans Bank-Based Deposits for Housing Lottery Applicants

MHADA runs housing lotteries for people who want to buy homes.

Right now, applicants usually send a deposit to MHADA when they apply.

If they do not win, MHADA sends the money back later.

Recently, about 75,000 applicants waited nearly three months for their refunds.

MHADA is planning a new system to avoid this problem.

Applicants would keep the deposit in their own bank accounts.

The bank would prevent them from withdrawing that specific money until the lottery results are announced.

If they lose, they would not need to wait for a refund.

Any interest earned would also stay with the applicant.

Key facts

Current deposit range: Applicants generally pay between Rs 10,000 and Rs 50,000, depending on the housing scheme.
Usual refund period: Refunds to unsuccessful applicants generally take around 10 to 15 days.
Recent refund delay: About 75,000 applicants in the recently held Mumbai Board lottery waited nearly three months for refunds.
Proposed account arrangement: The deposit would remain in the applicant’s bank account rather than being transferred to MHADA.
Withdrawal restriction: The earmarked amount would be blocked from withdrawal until the lottery process is completed and results are declared.
Interest: Interest earned on the deposit would remain with the applicant under the proposed system.
Implementation status: MHADA is working on the proposal and discussing the mechanism with banks.

freepressjournal.in · 6 days ago