Days after results being declared of the MHADA (Maharashtra Housing and Area Development Authority) Lottery, the entity remains clueless on when non-successful applicants will get their deposit refunds

Disha Shah

It has been 20 days since the MHADA Lottery results have been declared (they were announced on 31st May) and many applicants who were not lucky enough to win flats have yet to receive their security deposit refund.

Various complaints have been registered in sites like www.consumercomplains.in and www.grahakseva.com about the non-payment of refund. On 14th June, Vivek Nair, an applicant, complained: "I had submitted my application No1000026047 for the MHADA Lottery 2011. I had made payment via DD (demand draft) on Axis Bank for Rs15,050 along with application on 3rd May, but so far I have not received refund of my deposit money as promised by MHADA. I wish to know as to why they have not refunded my money within 48 hours though ECS (electronic clearing system) as declared by MHADA.

Please let me know whom to contact in this regard with their contact number."

A MHADA official said, "Results were out on 31 May 2011 and we have started giving refunds. But details of the refund are not available with us. Axis Bank can provide an update on that." While the official seemed clueless about non-payment of refunds, repeated attempts by Moneylife to contact the MHADA spokesperson to get a clear idea about the reasons for non-payment of refund were not successful till the time of writing this article.

While the Axis Bank spokesperson told Moneylife in an email reply: "We have handled the refund of all unsuccessful applicants of MHADA through electronic mode of NECS/ECS. (A total of) 5,580 cases (4.6% of total refunds) have been returned by the applicants' banks with the reasons as under 'name mismatch', 'account closed' 'wrong account name' or 'no such account'. These refund cases are being resolved in consultation with MHADA."

For 4,034 tenements to be allotted under the MHADA Lottery scheme, 1,23,380 people had applied during the registration period from 27th April to 19th May. While the higher-income group paid a security deposit of  Rs50,000, the middle- and lower-income groups paid a deposit of Rs25,000 and Rs15,000 respectively. The DDs and pay orders were submitted at Axis Bank branches across Mumbai.

Potential candidates were supposed to download the application form and submit it to the nearest Axis Bank branch with a demand draft or pay order in favour of 'Axis Bank A/c MHADB'. Those applicants did not win the lottery were supposed to get the deposit money through the Electronic Clearing Service (ECS) within days (not specified by MHADA) after result declaration.

The MHADA website provides no details about the days which it will take to provide a refund; it only has a notice about the non-payment of refund to unsuccessful candidates of the 2010 lottery.

(See: http://mhada.maharashtra.gov.in/sites/default/files/nivedan_070810.pdf for more details).

Again, the help-line meant to contact the concerned authorities regarding the same is still "under construction" (http://mhada.maharashtra.gov.in/?q=helpdesk).

MHADA is an apex body under the housing department of the government of Maharashtra. It provides houses through its MHADA Lottery scheme. This was the forth consecutive year when MHADA issued a circular for its lottery fund. Forms costed Rs50 and people from the high-income, middle-income and low-income groups applied for the lottery in the hope of getting their dream homes.