Applicants cry foul as HUDA cancels draw for Karnal plots

Deepender Deswal

Tribune News Service

Hisar, December 18

After the Haryana Urban Development Authority (HUDA) cancelled the draw for plots in Sector 32 and 33 of Karnal, applicants are set to feel the pinch as several of them who had taken loans for six months would have to pay extra interest.

The draw was scheduled for November 24, but it was cancelled because of litigation by landowners in the Punjab and Haryana High Court and the Supreme Court.

The applicants said they had taken loans to pay earnest money to HUDA. The banks charged six months’ interest in advance, as HUDA’s policy is to hold the draw within six months of announcing a project.

Those who had applied through banks on taking loans are at the receiving end, as six months ended in November. Now, banks will charge extra interest from them.

Bhagchand Varma, an applicant from Hisar, said he had submitted applications in the names of his members of family. “The delay in holding the draw has disturbed my plans. I had made arrangements to pay six months’ interest. Now, I will have to pay more interest due to delay on the part of HUDA,” he said, adding that like him, lakhs of applicants were feeling cheated.

Sources said nearly 1.2 lakh people had applied for 1,135 plots in the two sectors. HUDA had reportedly collected about Rs 170 crore as the application fee and earnest money. “HUDA has been earning interest on the amount collected from the applicants who will have to bear the brunt for no fault of theirs,” said Nishant Berwal, another applicant.