Allottees seeks more time to pay BDA for plots in Kempegowda layout

BENGALURU: Some 5,000 aspiring site owners, who thought they were close to living their dream as the Bengaluru Development Authority (BDA) had allotted them a plot at its Nadaprabhu Kempegowda Layout, are now realizing they still have a long way to go. While the BDA is asking allottees to cough up the total cost of the site which runs into lakhs of rupees, banks are turning down their requests for loans. In a fix, the allottees have now sought a six-month extension to pay up the amounts due.

Said Kumarswamy Hiremath, secretary of the Kempegowda Layout Allottees Association: “The BDA has given 60 days to deposit the sum. But it is not enough. We want the civic authority to give us six months to pay the money. With demonetization, it has become a challenge for us to mobilize the amount.” Allottees started getting allotment letters by early December; the two-month deadline for payment starts from the time one receives the letter.

Hiremath pointed out that the banks are sceptical about giving loans to buy plots. “The layout isn’t yet developed. There are no markings of sites in any block. Bank officials cannot verify any detail if we wish to avail loans. And the BDA’s track record in failing to develop Arkavathy Layout 12 years after it started distributing sites has certainly not helped,” he added.

The allottees are demanding that the BDA consider giving them a direct sale deed instead of the lease-cum-sale deed as they are paying 100% of the site cost. The lease-cum-sale deed prohibits alienating the sites for 10 years.

They also want the BDA to give a written undertaking that it’ll develop the layout to a certain extent in six months, so that they can use that as a document while availing home loan. “The BDA cannot be trusted. Karnataka has still not formed a regulatory authority as per the Real Estate Act 2016 framed by the Centre. This means allottees have nowhere to go and complain against the BDA if it fails to deliver the developed sites on time,” said Hiremath.

BJP leader and Rajajinagar MLA S Suresh Kumar has also written to the BDA to return the deposits of those who had applied for sites, but weren’t allotted one. The BDA has started refunding the initial deposits in a phased manner, but without interest. Kumar had earlier taken up their cause with the state government, demanding that the interest should also be returned to the applicants who failed in the first attempt. The initial deposit is 10% of the site cost.


The cost of a BDA site at Kempegowda Layout varies from Rs 96.87 lakh (50ftx80ft) to Rs 52.31 lakh ( 60ftx40ft) to Rs 23.25 lakh (30x40ft), besides registration charges. The allottees have already paid 10% of the value as initial deposit while applying.

Credits ET Realty

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