The housing authority will also gather more than Rs 200 crore by way of deposits, which will be returned to unsuccessful applicants
As if the mad rush since January 12 to buy forms for the 3,863 Maharashtra Housing and Area Develop-ment Authority (MHADA) flats was not enough, there's going to be more chaos. MHADA has extended its deadline for the sale and submission of forms to February 6 and 7 from January 30 and 31 respectively.
MHADA will be the biggest beneficiary in this process. There are 10 lakh forms for the 3,863 flats on offer and MHADA will earn Rs 10 crore from the sale of these forms. This also means that your chances of getting a flat are a negligible 0.38 per cent. MHADA is also expected to earn more than Rs 200 crore by way of deposits.
The deposit varies from Rs 15,000 to Rs 1 lakh per applicant depending on the area and income group. The deposit money will further strengthen MHADA's finances by Rs 4 crores, as it is is expected to earn a 7.5 per cent interest per month on the deposit amount that it plans to save as fixed deposit in various banks.
Your deposit
Unsuccessful applicants will get their money back, once the lottery for the flats is announced by MHADA after three months. The announcement maybe delayed due to several factors. If MHADA fails to return the money within a month of announcing the results, the applicant will get a one per cent interest on the deposit.
H K Jawale, chief officer, MHADA's Mumbai board, said, "We've received 35,000 applications on Tuesday. After such a tremendous response, we had no choice, but to extend the dates. Besides, there were many public holidays in between."
Cost factor
MHADA spent Rs 17.65 on printing each application form and booklet, which was sold to the public for Rs 100. HDFC Bank charges Rs 50 as processing fee, 12 per cent service tax and three per cent education cess on the processing fee.
This comes to Rs 57.50. However, the bank gets the processing fee only when an applicant submits the form. The remaining amount of Rs 24. 85 goes to MHADA's kitty.
However, MHADA does not agree. Vijay Salunke, chief accounts officer, MHADA Mumbai, said, "MHADA is selling the forms on no profit, no loss basis. The remaining amount will be spent on renting a hall, security and other needs."
