BENGLAURU: Following Rera’s designation of the Nadaprabhu Kempegowda Layout (NKPL) project as “lapsed” due to significant delays and unmet commitments to allottees, the Bangalore Development Authority (BDA) asserted on Monday that it is not a “promoter” and therefore outside Rera’s jurisdiction.
In its official statements, BDA contended that complaints against it do not hold under the Real Estate (Regulation and Development) Act, 2016, as site allotments are solely contractual. The authority highlighted that site allotments are regulated by its 1984 rules, strictly governing the relationship between the BDA and the allottee. Once an allotment is accepted, the allottee is bound by these rules, necessitating resolution of any disputes within this framework, excluding Rera. Consequently, allottees cannot assert rights under the 2016 Act.
The authority emphasized that the BDA Act has consistently been upheld by multiple Supreme Court benches as a self-contained framework with sufficient provisions to meet its goals. As such, the provisions of the Rera Act cannot apply to the BDA.
BDA further clarified that, unlike private promoters, it does not engage in promotional or commercial activities aimed at profit-making. Its operations are entirely governed by the BDA Act of 1976 and its associated rules. For this reason, the applicability of Rera provisions, according to the authority, should be dismissed.
Additionally, the BDA pointed out that it undertakes statutory obligations that private developers are not required to fulfill. This includes allocating sites to economically weaker sections at reduced rates, special allotments for sportspersons and servicemen, and favorable rates and payment options for SC/ST beneficiaries.
The BDA Act of 1976 was specifically enacted to regulate and ensure the planned development of Bengaluru, with forming layouts being just one of its many responsibilities. According to Section 81-B of the Karnataka Town and Country Planning Act, 1961, BDA functions as the local planning authority for Bengaluru, fully equipped with the powers and responsibilities of such an authority. Thus, it cannot be categorized as a “promoter” under Rera.
In concluding its arguments, the BDA asserted that Rera lacks the authority to regulate its operations or to consider complaints and petitions against it.
What and When
The NKPL project, initially scheduled for completion by December 31, 2021, has left over 10,000 families in uncertainty since Rera labeled the project as lapsed. Spanning 4,043 acres across nine blocks between Mysuru Road and Magadi Road, the layout has seen uneven progress; as of June 2025, while 93% of the roads and drains are completed, just 46% of the soil stabilization work has been finished.
