The decision to distribute the flats was taken at a Cabinet meeting presided over by Chief Minister Sheila Dikshit.
"The Cabinet has decided to initiate process of allotment of flats to the urban poor under Rajiv Ratna Awas Yojana for which a draw of lot would be convened very soon," she said.
Dikshit said the Union government had given permission for the construction of about 68,000 dwelling units for economically weaker section and around 50,000 of them are getting ready.
The flats were built by Delhi State Industrial Infrastructure Development Corporation (DSIIDC) in Bawana, Narela and Bhorgah areas with financial assistance from the Union Urban Development Ministry under the JNNURM scheme.
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The Urban Development department has received more than 1.80 lakh applications for the allotment of low cost flats under the Rajiv Ratna Awas Yojana.
Officials said people who have settled in a slum or a 'jhugghi-jhopri' cluster not later than March 31, 2007, will be eligible to get allotment of the low-cost houses.
The Cabinet has decided that the allottees from SC community will get the flats for free.
"The draw of lot will be organised very soon in the presence of the applicants and other eminent persons. It is going to be transparent as well as accurate. The Delhi Urban Shelter Improvement Board would finally verify the particulars of allottees in order to ensure fair process of allotment," Dikshit said.