Legal Question in Real Estate Law in India

dda scheme 2008

Delhi development authority (DDA) expressly prohibits anybody to apply 4 a flat in its prospectus 4 draw of lots 4 flats, if that person has been alloted a flat by DDA IN the past irrespective of the size of the flat already alloted.I OWN A FLAT ALLOTED BY DDA IN 1980 IN MY NAME. nOW THE SAID FLAT IS OF VERY LITTLE SIZE 2 ACCOMADATE MY WHOLE OF THE FAMILY .I want another flat but CANNOT apply in view of the aforesaid prohibition.I m therefore applying a new flat in the current scheme of DDA, but in the name of one of my sons who is not having any income AS no proff of any income is required as per the said prospectus 4 DDA FLATS 2008.ALL AMOUNT OF Rs. 150000/- has been deposited my me belong 2 me. I SHALL be TAKing THE POSSESSION OF THE flat on allotment .IS this a BENAMI TRANSATION OR will be a HUF PROPERTY or my self aquired property or a sham transation?


Asked on 9/14/08, 3:03 am

3 Answers from Attorneys
Satyajit Patra Satyajit Patra

Re: dda scheme 2008

Based on the law laid down in Rajam Ammal v. P.K. Pillai, AIR 1991 Mad 310 it could not be said to be a Benami Transaction in as much as the property had been purchased for the benefit of the son. But in doing so you will be hit the provisions of DDA allotment scheme i.e.you are having a DDA flat and cannot own another.

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Answered on 9/14/08, 2:28 pm
Shrichand Nahar S.V.Nahar, Advocate

Re: dda scheme 2008

Already replied.

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Answered on 9/15/08, 2:36 am
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: dda scheme 2008

HUF is a separate legal entity like a Company. It will not be HUF property.

It will not be a sham transaction.

The property can still claimed as your self acquired property if you obtain a writing from your son that the amount is being deposited by you to circumvent the prohibition created by DDA and that the property shall belong to you or your family.

You may check up the Benami Prohibition Act; possibly the transactions within families are exempted from penal provision of 'benami tractions'.

To avoid all disputes, you can even now create HUF with the money you have already deposited and that you are yet to deposit simply by opening a bank account and filing income tax return of HUF.

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Answered on 9/14/08, 4:53 am


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