BENGALURU: The Bangalore Development Authority (BDA) may soon face additional compensation claims, as several allottees from the Nadaprabhu Kempegowda Layout (NPKL) recently secured favorable rulings from the Real Estate Regulatory Authority (RERA).
By April, site owners had lodged 38 complaints against the BDA, with about 30 of those already settled by RERA. Most complaints were centered around compensation for delays in providing essential amenities such as roads, water, drainage, and electricity connections.
The extensive housing project spans approximately 29,000 plots, located between Mysuru Road and Magadi Road in the Yeshwantpur assembly constituency. The completion delays have put more than 10,000 primary allottees and auction buyers in a difficult situation. NPKL stands at the top of RERA’s list of defaulting projects, originally set for completion by December 31, 2021. Frustration mounts among allottees as the project continues to be under development nine years post-allotment.
RERA, along with appellate tribunals, has designated the BDA as a promoter, disregarding its claims to the contrary, providing relief to countless allottees. Many are now approaching the regulator with complaints to seek compensation for interest paid on prolonged loans, the cost of renting, and increased interest rates due to banks downgrading their home loans to site loans retroactively.
BDA Plans to Challenge Orders
Officials from the civic body have indicated plans to contest the RERA orders in appellate courts. However, the RERA Act mandates that a promoter must deposit 30% of any imposed penalties prior to appealing a ruling, which could pose a challenge for the BDA.
In the meantime, allottees see hope in RERA’s decisions. Many individuals interviewed expressed that they waited nearly two decades for their plots, and the thought of another 10 years feels daunting as they approach old age. Others have reported being ineligible for bank home loans due to the delays.
Sairam, a member of the NPKL Open Forum who registered his plot in 2020, stated: “I felt compelled to take action when BDA failed to deliver. I filed complaints after paying around Rs 97 lakh plus registration fees in February 2020. My primary concern was the absence of critical infrastructure despite full payment and possession. Winning against BDA in RERA was a huge relief.”
Another allottee, aged 56, from Block 5 added: “Upon discovering the option to approach RERA, I filed a complaint and received an order for Rs 47 lakh in compensation. Despite investing our life savings, I still can’t build a home. While the ruling provides some relief, we’re ready to pursue further legal options based on BDA’s response, as we ultimately want our rightful compensation and a livable plot.”
Madhusudhan, another allottee from NPKL Block 3, shared: “My mother wasn’t aware of the process, making it challenging for me to facilitate registration. She invested Rs 6 lakh under the Economically Weaker Section (EWS), and I’ve spent almost five years following up. This is her life savings.”
‘Clear Disregard for the Law’
Sridhar Nuggehalli, president of the NPKL Open Forum, noted: “BDA’s lack of a proper response on compensation shows a blatant disregard for the law. Inspired by recent rulings awarding 50-60% of site value as compensation, more allottees are now seeking RERA’s intervention. While buyers wish to retain their sites and construct homes, the lack of basic infrastructure continues to hinder construction efforts.”
He added, “Many individuals have waited nearly nine years, with some unfortunately passing away before experiencing home ownership. Although recent compensation orders have fostered some confidence, payments remain uncertain, and BDA’s challenge is expected. It’s critical that accountability is enforced to prevent further suffering due to prolonged delays and infrastructure deficiencies.”
Allottees report that the BDA has yet to address the compensation payments, but they remain hopeful as time progresses.
