Investment Guru

DDA Housing Scheme gets good response, Allotment Details

The DDA Housing Scheme 2008 has attracted about 3.5 Lac applicants for the 5010 flats put for sale. DDA had a dream run in terms of money collected on Application forms and will earn a interest of about 45 crores in the 3 month period on the Registration amount collected from the applicants. The lottery draw will be held in the Month of December.

Result of Allotment

The results of the draw shall be displayed on the Notice Board of DDA at Vikas Sadan, D-Block, INA, New Delhi-23. In addition the result shall be displayed on the website of DDA with the address http://www.dda.org.in. The result will also be published in the leading national Newspapers.

Allotment Cum Demand Letters will be dispatched through Speed Post/Courier/Registered Post

Waiting List

A separate waiting list of 200 applicants will also be declared in order of priority. The waiting list will be valid only for 9 months from the date of issue of demand letters. The registration money of the wait listed registrants shall be refunded along with unsuccessful registrants. However, before going for the draw in case the same takes place for filling up the vacancies, all such eligible wait-listed shall be asked to deposit the registration money. 15 days time shall be given to them to do so and only those names shall be included who would be depositing their registration money prior to the draw. A draw will be held only once after six months, from date of issue of demand letters, for allotment of the surrendered flats to the wait listed registrants as per the priority decided initially. Only those flats which are surrendered within six months from date of issue of demand letters would be included for allotment to waitlisted registrants. The waiting list is created just to ensure that the surrendered flats (if any) are allotted to same registrants rather than keeping them vacant and the list will be valid only for 9 months, hence it doesn’t create any right of the wait listed registrants if they fail to get a flat from the surrendered ones. If successful, the cost would be the cost of the flat on the date the demand cum-allotment letter is issued.

Interest on Registration money

In case registration money is not refunded within three months from the closure of the scheme, in case of unsuccessful applicants, simple interest @ 5% will be paid on the registration money for the period beyond three months after the closure of the scheme up to the last date of the preceding month in which refund has been made.

Can I surrender my Flats on allotment ?

The successful applicants shall have the options to surrender the flats before the issue of the possession letter. Flat will be automatically cancelled in case payments are not made within the prescribed period. No show cause notice shall be issued for the purpose. In both the cases, amount deposited is refundable without any interest. However, cancellation charges shall be recovered

How to check DDA Flats Draw Results and Application Status ?

Step 1. Go to the DDA Website by clicking following link

DDA Draw Result Website

Step 2. You will see the following screen.

Select the Scheme and Reserved Category as shown above and put your Registration number or Priority No. and Category of Flat.

Click Search and see the Status of your application. Please not that the draw is expected in later part of December,2008.

Lehman files for Bankruptcy, Market Reacts

"Lehman Brothers Holdings Inc said it plans to file for bankruptcy protection, but the Chapter 11 filing will not include its broker-dealer operations and other units, including Neuberger Berman.

Lehman is looking at selling its broker-dealer operations, and is still in advanced discussions with a number of potential buyers of its investment management division.
Bankruptcy represents the end of a 158-year old company that survived world wars and the collapse of Long-Term Capital Management but could not survive the global credit crunch.
Investors in recent weeks had grown increasingly jittery about Lehman's $46 billion of mortgages and asset-backed securities, as well as its credit rating and its ability to raise capital. Source : Reuters"

The news has broken hell on the global as well as Indian stock markets. As a public company Lehman had never reported a Qaurterly loss until June'08. The bank had actually reported a record net profit of $4.2 billion in year 2007. The ruptured U.S. financial system faces an unprecedented shakeup with Lehman Brothers set to file for bankruptcy, Bank of America buying Merrill Lynch, and the Federal Reserve saying for the first time it will accept stocks in exchange for cash loans.

I had mentioned in my Recent presentation on stock markets that the credit crisis in US is yet to unfold and may unsettle the dynamics of the financial regulations globally. There are other financial institution in pipeline to declare themselves on the verge of bankruptcy. It is high time that Indian banks take stock of their credit regulations and control in place for determining quality of credit. It's a wake-up call for the RBI to do a check on potency of its banking regulations.

What is Chapter 11 Bankruptcy?

Chapter 11 bankruptcy is a form of corporate financial reorganization in which a company's assets gets sold off to remunerate past due creditors. In some cases, Chapter 11 bankruptcy allows companies to continue to function. The theory here is that businesses which are allowed to move forward will generate revenue, protect jobs, and otherwise heal creditor wounds. Scraping and selling businesses for their parts, on the other hand, may lead to less than optimal utilization of company resources. Chapter 11 bankruptcy filings may be “strategic”. In other words, management may wish to reorganize for political reasons, not simply for the sake of balancing books.

Much of Chapter 11 bankruptcy case law is devoted to the finding what constitutes asset exemptions under the law. In cases in which parent companies and/or partnerships are involved, assets may be shielded by selling them off or otherwise hiding them within the financial infrastructures of sympathetic firms. It's even legally possible, under certain situations, to offshore assets to shield them from creditors. Despite the abundance of case law designed to establish precedent for Chapter 11 bankruptcy situations, the emergence of "globalized business" has added a new wrinkle to the ongoing debate over how failing businesses should repay creditors. (Source : Super Pages)

For Detailed study of Chapter 11 US Courts website provide a comprehensive reading material. Go to US Court Website to read more. Read More!

Banks rush to provide loan for DDA Flats Registration

SBI Offers lowest Interest Charge for financing DDA Flats

As the last date for submitting the application form for DDA flats is approaching near, the War has begun. Almost all Banks have jumped the bandwagon to offer loans for financing the registration amount of Rs. 1.5 Lacs for the DDA flats offered under the DDA Housing Scheme'08. State Bank of India has come to the forefront by offering the cheapest loan for application money. Interest rates offered by banks for the DDA Housing scheme varies from Bank to Bank and hence investors should be compare these before approaching the nearest branch for a loan. Currently SBI is the best option for availing the loan as it is charging Rs. 5,050 towards interest and processing charges against Rs. 6600 charged by private banks.

One should go to the Public Sector banks to avail the loan for DDA flats as they are charging less interest rates as compared to the Private Banks. Private players like HDFC, ICICI Bank, IDBI Bank and others are charging Rs. 6,600 as Interest charge and processing fee. Union Bank of India is charging Rs. 5,700 while Central bank of India is charging Rs.5,680.

Interest Rates charged by Banks on Loan for DDA Flats Registration

Bank	Interest & Processing Charges
State Bank of India	Rs. 5,050
Central Bank of India	Rs. 5,680
Union Bank of India	Rs. 5,700
HDFC Bank	Rs. 6,600
ICICI Bank	Rs. 6,600
IDBI Bank	Rs. 6,600

Important point to Note while availing Loan for DDA Flats

While the whole idea of getting the deal financed through bank for the Registration amount may sound appealing, there is an important rider which the applicants should keep in mind. The Interest charges mentioned above are for a period of Three Months. If DDA fails to conduct the selection process within three months and delays the lottery date, the applicants would have to cough up interest charges for the further period which may range anywhere in the range of 11-14% depending on bank to bank. Applicants should keep this in kind while applying for a loan.