GDA cancels Wave City flats for 410 EWS allottees as ₹24cr dues yet to be cleared

Ghaziabad: The development authority on Monday cancelled the allotment of 410 economically weaker sections (EWS) units in Wave City township after beneficiaries of the affordable housing scheme failed to clear dues worth Rs 24 crore cumulatively. GDA officials said the EWS units were allotted through a lottery in 2020.
For the 410 units, with an estimated cost of around Rs 4 lakh each, beneficiaries only cleared the first couple of instalments.Subsequently, defaulters were issued several notices, a final one on June 22 asking them to clear dues within 15 days.

“We cancelled the allotments through a public notice as the 410 beneficiaries failed to respond within the stipulated time. The units will soon be reallotted,” GDA secretary Rajesh Kumar Singh said.
A Wave City representative told TOI that after notifying GDA, they reached out to each beneficiary, asking them to clear the dues. “Following our report, the GDA, through a public notice, cancelled the allotments. Beneficiaries who have made partial payment can obtain a refund after necessary deductions,” the spokesperson said.
To apply for a housing unit under the EWS scheme, beneficiaries pay a nominal registration fee. On allotment, they have to pay the premium in fixed instalments every three months. Real estate agent Ashish Kumar said while it was difficult to ascertain why so many allottees defaulted on payment, one plausible explanation could be that the Wave City township’s project was stuck after a 2017 CAG audit flagged the developer owed Rs 401 crore as land conversion charges. “Though the issue is heading for a solution now, nonetheless it could have deterred many EWS beneficiaries from further paying up instalments,” he said.
According to a 2012 govt order, developers must allocate 10% of the total flats in group housing societies, coming up on 3,000 sqm or above, to EWS and 10% to low-income group (LIG) categories. EWS units should be in the range from 24 sqm to 36sqm, while LIG units between 40sqm and 60sqm. The GDA approves project maps only when developers commit to constructing these flats within a specified timeframe.
Earlier, GDA warned several group housing developers for failing to adhere to their commitments. Of the nearly 7,000 EWS units and an equivalent number of LIG units slated to be constructed, 60% have been completed.