Bengaluru: BDA to impose 25% penalty for plots left vacant over 3 years

The Bengaluru Development Authority (BDA) has decided to crack down on property owners who fail to construct houses on their plots within three years of purchase. The BDA has announced that a 25% penalty will be imposed on those who do not adhere to this timeline. Although a rule existed to penalize plot owners who didn't build houses within the stipulated period, it was not strictly enforced. With thousands of plots lying vacant across the city, the BDA is now taking steps to enforce this rule more rigorously.

Currently, there are over 13,000 vacant plots across 64 layouts under the BDA's jurisdiction where owners have not yet constructed houses. Additionally, ownership disputes affect approximately 20,000 more plots. Previously, plot owners were required to build houses within five years of acquisition. If they failed to do so, they were subject to a fine based on the plot size: Rs 5,000 for a 600 square foot plot, Rs 3.75 lakh for a 4,000 square foot plot, and Rs 6 lakh for plots larger than 4,000 square feet.

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However, the BDA has now shortened the construction deadline to three years and increased the penalty to 25% of the guideline value of the respective area if the house is not built within this period. This move is seen as an effort by the BDA to encourage quicker development of these plots and prevent them from being left idle.

The BDA allocates plots at lower rates with the intent of providing affordable housing for the poor and middle class in Bengaluru. However, many buyers purchase these plots as an investment, waiting for the market value to increase before selling them. It has been reported that some individuals use their influence to acquire multiple plots in the names of family members, relatives, or friends, and then leave them undeveloped, waiting for the right time to sell.

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In response to this trend, the BDA has decided to reduce the construction timeline from five years to three years to discourage speculative investments and ensure that plots are used for their intended purpose—building homes. Additionally, the BDA has raised concerns about vacant plots becoming dumping grounds for waste, which leads to the growth of wild vegetation and creates habitats for dangerous snakes. The new rule aims to address these issues as well.

Previously, plot owners were prohibited from selling their BDA-acquired plots for ten years. However, this rule has been relaxed, and plots can now be sold at any time. However, according to current market guidelines, those who purchase plots from the original beneficiaries will also be subject to the 25% penalty fee.

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• Karnataka
• Bengaluru
• Empty plots
• BDA
• Penalty
• Houses