“The present times demand an increase in the dwelling units in the state. The proposal for increasing the area earmarked for group housing societies received the final nod today,” said Chief Administrator (HUDA) T C Gupta.

The members also approved to increase the interest rates on normal installments being paid by the HUDA allottees from the existing 9 per cent to 12 per cent. The penal rates of interest for delayed payments has also been increased from the existing 12 per cent to 15 per cent. These new rates will be effective from April 1.

On the logic behind increasing the interest rates, Gupta said: “While we do understand that the rate of interests were showing a downward trend recently, the rate of interest that HUDA was charging was, however, far low than the prevailing market rates,” said Gupta.

For the residents, the approval comes as a big relief. A resident of Sector 7, Suresh Mittal said, “With the drastic increase in population, this was the need of the hour. With the availability of land decreasing with each passing day, group housing societies will be the only solution to deal with the lack of availability of land.”