BENGALURU: The Bangalore Development Authority (BDA) is set to implement a one-time 10% non-construction fine for allottees who fail to build homes within three years of receiving their plots. Officials emphasized that the rule will be strictly enforced, with sale deeds not issued until construction is completed.
This initiative primarily targets beneficiaries who have either neglected to build homes or engaged in illegal plot transfers, despite significant increases in land values. Notably, Arkavathy and Nadaprabhu Kempegowda Layout (NPKL) are exempt from this rule due to delays and incomplete infrastructure that hindered construction for allottees.
Under the BDA scheme, plots were allocated at non-market rates to applicants without prior homes. Agreement-cum-sale deeds were executed, prohibiting property transfer for a decade, later shortened to five years. While many recipients have built homes, several left their plots untouched after nominal payments in the 1960s and 1970s. Currently, some of these plots are valued at nearly Rs 10 crore. According to regulations, the BDA has the authority to reclaim such sites or recover costs in case of violations, although court directives previously restricted it from reclaiming properties and instead mandated the formulation of a penalty-based regularization policy.
Historically, penalties were levied at flat rates—Rs 1.5 lakh for 20×30 ft sites, Rs 2 lakh for 30×40 ft plots, and Rs 4 lakh for 60×40 ft sites. However, in a policy revision last year, the BDA established the fine at 10% of the prevailing guidance value, regardless of site dimensions. This new policy took effect on August 19, 2024, and enforcement will be intensified.
With rising guidance values, penalties can now reach lakhs, and even crores in premium areas, leading to strong pushback from violators. For instance, a Jayanagar allottees who acquired a 50×80 site for Rs 5,000–Rs 10,000 could once regularize their violation for nearly Rs 10,000. With the site now valued at around Rs 10 crore, the penalty could soar to Rs 1 crore, creating significant challenges for offenders. Consequently, the BDA plans to present this issue before the board in the next meeting, potentially leading to increased penalties.
BDA has also noted instances where allottees request sale deeds to obtain e-Khata but subsequently fail to return for regularization, continuing to receive full ownership benefits. So far, about 50 such cases have been identified.
Additionally, illegal transfers made during the restricted agreement period will come under scrutiny, drawing a 25% penalty on the transaction value for unauthorized site transfers without BDA permission.
Haris NA, BDA Chairman, remarked: “The rule for allottees who have not constructed houses in BDA layouts—except Arkavathy and NPKL—is straightforward: they need to build or face a penalty. Sale deeds will not be issued without completed construction, and we expect strict enforcement.”
