Only AXIS bank in bids for MHADA lottery tender

Finding a bank which gives satisfactory rate of interest on deposits has become a daunting task for the Maharashtra Housing and Area Development Authority (MHADA), as only Axis Bank has applied during the third tenders invited by MHADA for collecting application forms from home seekers for houses under various schemes.

"Axis is the only bank that has applied and there is a strong likelihood that they would be awarded the contract of collecting application forms as we don't have any options" said an official from MHADA.

MHADA appoints a bank wherein the people can fill up and submit their application forms for the lottery. While MHADA also deposits the money submitted by the applicants in these banks and gets interest on the same, MHADA would also pay Rs 20 per form submitted to the banks. Axis bank is ready to pay an interest of around 5 per cent on the collection amount deposited in the collection centres, operated out of the branches.

" The rate of interest offered by them is very low and hence we are trying to find out some other banks that can give a higher rate of interest" said an official.

MHADA has also started visiting the branches of the banks to check the space and type of infrastructure that would be required to handle the work. The officials have also provided multiple reasons for rejecting Axis Bank.

Vice President of MHADA Satish Gavai had said Axis Bank didn't had enough branches while Chief Officer of Mumbai board Annasaheb Misal said Axis Bank is fulfilling the requirements as it has more than mandatory 50 branches in and around Mumbai.