DDA issues showcause notices after banks fail to refund registration amount

Coming down heavily on banks for not refunding registration amount of unsuccessful aspirants of housing scheme within the scheduled time, the Delhi Development Authority (DDA)on Monday issued show cause notices to the banks involved.

The DDA officials informed that as many as 13 banks empanelled with the scheme have been sent notices for not returning money despite the funds being released by the housing authority on December 19. The DDA had amassed Rs. 10,000 crore from more than 10 lakh applicants and had promised to refund the money of unsuccessful applicants within 30 days after the lucky draw.

The DDA officials have said that the banks had been asked to refund the money by December 24, yet scores of applicants reported not to have received the money even after the deadline.  Subsequent inquiry revealed that banks had ignored the direction given earlier. “After receiving complaints, we have issued notice and have asked them to refund the money before December 31. If any bank fails to comply with the order action will be initiated against the it,” said an official.