BENGALURU: Bangalore Development Authority (BDA) site allottees in Nadaprabhu Kempegowda Layout (NPKL), who are yet to start construction of their houses, are grappling with twin problems -- a penalty amount that the BDA is levying for keeping the sites vacant and a higher rate of interest to be charged by banks as the home loan on these sites would be converted into a commercial loan. In the absence of civic infrastructure in the Layout, it was not possible to get the construction process underway, say allottees.
Keeping a site vacant five years after its allotment invites a penalty amount ranging between Rs 5,000 and Rs 6 lakh from the BDA depending on the dimensions of the site. The first batch of 5,000 sites were allotted in December 2016 while another 5,000 sites were allotted in March 2018.
Malini V S bought her 30x40 sq ft site for Rs 24 lakh in Komaghatta three years ago. She told The New Indian Express, "I have received a letter from my bank that in case I do not begin construction work by December 2021, I will be charged a higher rate of interest. I pay 10.5% rate of interest presently on my home loan. There are no roads to bring material in and carry out construction work. There is no electricity or water supply too. If I go ahead with building my house, neither can I live there nor will I be able to rent it out."
Sham Jujare S, who has a bought a plot in Bheemakuppe area, told The New Indian Express, “The penalty that BDA plans to levy for keeping sites vacant is a worrying one. They should not levy this fine as we could not go ahead with construction because of lack of infrastructure at KG Layout.”
Dr Padma Prasad of NPKL Progressive Forum said they have submitted a representation to the BDA that “the construction clause be effected after completion of basic infrastructure by the BDA instead of the existing clause of five years from the date of registration.” She added that many allottees have received letters from banks alerting them about the higher rate of interest to be levied.
Commissioner Rajesh Gowda told The New Indian Express that the BDA was doing its best to expedite all infrastructure work in the Layout. "The contract has been awarded to two firms -- SPML and L&T. Due to COVID, they have not been able to complete the work." He said the penalty amount levied on vacant sites was intended to ensure that allottees go ahead with construction and not leave it empty.