MHADA Proposes Retaining Housing Lottery Deposits in Applicants' Bank Accounts

MUMBAI — The Maharashtra Housing and Area Development Authority (MHADA) is preparing to overhaul its housing lottery deposit rules, allowing applicants in Mumbai and across the state to retain their deposit funds in their own bank accounts during the application process.

Under the proposed system, applicants will no longer be required to transfer the mandatory deposit amount directly to MHADA’s account. Instead, the prescribed funds will remain in the applicant’s personal bank account, with withdrawals from the earmarked sum restricted until the lottery results are declared.

According to a MHADA official, work is currently underway on the proposal, with the authority aiming to implement the new mechanism in its upcoming housing lotteries. The change is being designed to increase transparency, improve convenience for citizens, and eliminate the need for unsuccessful applicants to wait for refunds.

Under the existing process, housing lotteries conducted by MHADA attract lakhs of applicants. Citizens are generally required to deposit between Rs 10,000 and Rs 50,000 into MHADA’s account at the time of submitting an application, with the exact amount depending on the specific housing scheme.

In standard circumstances, refunds for unselected applicants take approximately 10 to 15 days following the announcement of results. However, in a recent Mumbai Board lottery, around 75,000 applicants faced delays of nearly three months to receive their money back after the lottery process was delayed, keeping large sums locked with the housing authority for an extended duration.

To resolve this issue, MHADA is holding discussions with banks to establish a system that blocks the required deposit amount in an applicant's account without transferring the capital. Under this arrangement, the housing authority will not hold applicants' funds, removing the need to manage a separate refund operation. Furthermore, even if lottery schedules face delays, any interest earned on the deposit money will remain with the applicants rather than MHADA.