BENGALURU: The Bangalore Development Authority (BDA) site allottees of Nadaprabhu Kempegowda Layout (NPKL), who are yet to start construction of their houses, face twin problems: a penalty amount that BDA levies for keeping sites vacant, and a higher rate of interest 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 is not possible to get the construction process underway, say allottees.
Keeping a site vacant for five years after allotment invites a penalty amount ranging between Rs 5,000 and Rs 6 lakh from the Authority, depending on the site dimension. The first batch of 5,000 sites was allotted in December 2016 while another 5,000 sites were allotted in March 2018.
Malini V S bought her 30x40 sqft site for Rs 24 lakh in Komaghatta three years ago. She told TNIE, “I have received a letter from my bank that in case I don’t begin construction work by December 2021, I will be charged a higher rate of interest.
At present, I pay 10.5% interest on my home loan. There are no roads to bring material and carry out construction work. There is no electricity or water supply. If I go ahead with building my house, neither can I live there nor will I be able to rent it.
“ Sham Jujare S, who bought a plot in Bhimanakuppe area told TNIE, “The penalty that BDA plans to levy for keeping sites vacant is worrying. It should not levy the fine as we couldn’t go ahead with construction because of lack of infrastructure in KG Layout.” Commissioner Rajesh Gowda told TNIE that 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-19 which has slowed down activities across the world, 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