MHADA Lottery Deposit To Remain In Applicants’ Bank Accounts, Withdrawals Locked Until Results

Mumbai, August 26, 2026: The Maharashtra Housing and Area Development Authority (MHADA) is preparing to make a major change to its housing lottery process.

Under the proposed system, applicants will no longer have to transfer the mandatory deposit amount to MHADA’s account while applying for a lottery.

Instead, the money will remain in the applicant’s own bank account, but withdrawals from the earmarked amount will be restricted until the lottery results are announced.

According to a MHADA official, work is underway on a proposal to overhaul the rules governing deposit money for housing lotteries. The authority is working towards introducing the new mechanism in its upcoming lotteries.

New System Under Development

A new system is being developed with the aim of making the lottery process more transparent and convenient for applicants. MHADA also does not want to retain applicants’ deposits and earn interest on the money. Under the proposed arrangement, applicants who do not win a house will also not have to wait for their money to be refunded.

MHADA’s various housing lotteries attract lakhs of applicants each time. Under the existing system, applicants are generally required to deposit between Rs 10,000 and Rs 50,000, depending on the scheme, into MHADA’s account while submitting their applications.

Refund Delays Prompt Change

After the lottery results are announced, the deposit is refunded to applicants who are not selected. The refund process generally takes around 10 to 15 days.

However, in the recently held Mumbai Board lottery, around 75,000 applicants had to wait nearly three months for their refunds. The delay in conducting the lottery meant that the applicants’ deposits remained with MHADA for an extended period.

Against this backdrop, the proposed system is being viewed as a significant change that could prevent applicants’ money from getting locked with the housing authority for long periods.

Bank-Based Deposit Mechanism

Under the proposed mechanism, applicants will have to maintain the prescribed deposit amount in their bank accounts. MHADA is in discussions with banks to develop a system under which the earmarked amount cannot be withdrawn by the applicant until the lottery process is completed and the results are declared.

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This would eliminate the need for MHADA to hold large amounts of applicants’ money and also remove the need for a separate refund process for unsuccessful applicants.

Importantly, even if there is a delay in conducting the lottery, the interest earned on the amount will remain with the applicant, rather than MHADA.

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