Welcome!

If you are here, chances are that you are tired of your wife's nagging and have accepted the fate that it's time to move out of your parent's abode, which for years had been a paradise for you. If not, your parents must be planning to kick you out of the house. Still better, you are looking for a good investment opportunity. Or, have simply shifted base to a new city and looking for permanent accommodation.
But, for those hit by escalating costs…maybe, this blog can butt out 'the but' in your case. So, feel free to read it and leave your comments.

Tuesday, January 6, 2009

Why waste money on DDA schemes?

Those of you who had been wondering why I have not touched upon the DDA scam till date, here’s the answer:

I had been following the turn of events which got ‘interesting’ by the day.

Anyway, I have finally decided to write something on it. But before I do let me just do a quick flashback. Some months ago when the DDA scheme was announced, somebody urged me to go for it. But, I did not and I had cited my friend KSD’s .

KSD, currently in the US, is busy fighting a long-drawn case with the DDA. He emerged a lucky winner in their draw of lots years ago but hasn’t been allotted a flat. No doubt, that was a reason for my decision, but there was another — I had already bought a flat and wasn’t interested in wasting Rs 5000 towards application fee.

With this scam coming to light, I am actually thanking my stars that I didn’t ‘go for it’.

And, you won’t be surprised to know that KSD’s case isn't an isolated one. Last night, a news channel telecast brief interviews of people who hadn’t been allotted a flat by the DDA since decades. On person even claimed that his name had appeared in DDA list in 1981 and yet he hasn’t been allotted one.

Here, I would say it’s not just the DDA, which is at fault, for if you look up the google, chances are that you may find many such cases all over India. Closer home, the Ghaziabad Development Authority (GDA) comes to my mind.

Incidentally, in Indirapuram itself there are apartment blocks, which could have matched the Archaeological Survey of India’s list of ‘protected buildings’ considering their ruined look. Surprisingly though, many such blocks are up for sale though at a cheaper rate than the prevailing market price.

But, what’s even more interesting is the reason how they achieved that state. A decade ago the GDA along with the EIL (Engineers India Ltd.) had planned a society and construction began in full flow. The apartments were completed in good time only to lie vacant and unattended for more than 10 years.

Why?

Because of a legal soup. Now that case is over and these flats are up for sale.

The point that I am trying to raise here is that there is no point investing money in such schemes for seldom do these meet your expectations.

5 comments:

AR Hemant said...

This DDA scheme is a state sanctioned fraud on a massive scale. The nonrefundable fee goes straight into the government coffers, and even if you win the lottery there's no guarantee of getting possession of your flat. The flats themselves look appallingly poor and I wonder if they're worth the price. Maybe they are, and hence the relatively low price. But even then, the government makes tonnes of money.

Read this post to understand the massive scale of this fraud.

Anam said...

You got a point there ‘The Not So Talkative Man’.

Yes, I have seen that post. I personally feel there always is some fraud in such schemes; it’s only this time round that the media watchdogs managed to sniff it out.

dinkar said...

Yup, almost all DDA schemes end up with some one being digrunteld or the other.

I you go back to the older schemes, you will find ppl who have paid money legitamately to DDA after their names appeared in draws but are yet to get their piece of real estate even after decades.

Sonal Jain said...

• NTPC to invest $10 bn in coal power plants despite surplus, green concerns.
• ABG Shipyard in 'deep crisis', posts Rs 822 cr loss in Q3.
• Infosys Finacle ties up with Singapore firm for AI in banking services.
CapitalStars

Sonal Jain said...

The stock market is a device for transferring money from the impatient to the patient.Capitalstars