Bengaluru: BDA to issue fines for unused plots, penalty likely to increase to 25%
By Vinaykumar Patil | First Published Dec 3, 2024, 9:53 AM ISTThe Bengaluru Development Authority (BDA) has imposed a 10% penalty on unused plots and may increase it to 25%. Applicable to over 4,000 plots, the penalty targets rule violations. While enforcing stricter guidelines, the revised fines pose challenges for financially constrained plot owners.
The Bengaluru Development Authority (BDA) has introduced a 10% penalty on all plots of land that have not been utilized for building houses within the stipulated timeframe. The revised penalty aims to address violations of the agreement by those who have failed to construct houses after purchasing plots. BDA is also considering raising this penalty rate to 25% in the coming months.
The revised 10% penalty applies to more than 4,000 plots across various layouts developed by BDA, including Nadaprabhu Kempegowda Layout, Arkavati Layout, Banashankari 3rd Phase, Anjanapur, Jayanagar, Kumaraswamy Layout 2nd Phase, Nagarabhavi, Nandini Layout, Jnanabharathi, Vijayanagar, RMV 2nd Phase, HSR Layout, and JP Nagar.
Bengaluru: BDA to impose 25% penalty for plots left vacant over 3 years
Latest Videos
BDA has allocated plots at affordable rates to help residents build their own homes. However, instances of misuse have emerged, where wealthy individuals, builders, and real estate brokers purchase these plots and sell them at higher prices. In response, BDA increased the penalties to ensure stricter enforcement of its rules.
The penalty is now calculated as 10% of the current market guideline rate. For instance, a 20x30 plot purchased from BDA for ₹5 lakh in 2005, but left unused, will incur a penalty of ₹3 lakh at the current market rate of ₹30 lakh. The revised penalty structure has been in effect since September 23, 2024.
Previously, BDA imposed fixed fines based on plot sizes. These ranged from ₹5,000 for 20x30 plots to ₹26 lakh for plots measuring more than 50x80. The new system ties the fine to market rates, making penalties more stringent.
Some plot owners face difficulties due to the revised fines. While BDA retains ownership of plots for ten years after allocation, some individuals either delay constructing houses or keep the land vacant for decades before approaching BDA for a sale deed. In some cases, genuine financial hardships have prevented timely construction, making the revised fines a burden for such owners.
There is a longstanding rule allowing BDA to repossess plots if construction is not completed within the specified period. In the mid-1990s, several plot owners challenged this rule in court. The court directed BDA to impose fines instead of repossessing plots. Since then, BDA has followed this practice, regularly revising penalties to align with market trends.
Bengaluru: BDA likely to increase flat prices by 10-20%
Lokesh, Finance Member of BDA, stated, “The price of purchased plots has increased over time, and so have the penalties. This ensures compliance with the terms of allocation.”
With stricter rules and potential hikes in penalty rates, plot owners are now under pressure to adhere to BDA’s guidelines and complete construction within the stipulated timeline.
subscribe to Asianet Newsable WhatsApp channel by clicking here. For more reliable and latest news
subscribe to Asianet Newsable Telegram channel by clicking here.