BENGALURU: The High Court of Karnataka has permitted BDA to invite applications for sites in Dr Shivaram Karanth Layout to generate revenue for various infrastructure works and to ease its loan burden. However, the court said BDA could only invite applications and allotment of sites would depend on further directions to be issued by it.
A special division bench of Justice M Nagaprasanna and Justice Venkatesh Naik T passed this order recently, considering the application filed by BDA along with an affidavit explaining its financial position and seeking permission to invite applications for allotment of sites. In its order passed on January 18, 2024, the court asked BDA to maintain status quo in the matter.
The affidavit stated that the procedure for allotment of sites under the provisions of the BDA (Allotment of Sites) Rules, 1984, will take nearly one year. As per the prescribed procedure, two months have to be granted to the people to submit applications along with an initial deposit of 12.5% of the site value. Thereafter, additional time has to be given to allottees for payment of the balance amount in accordance with the rules.
The affidavit stated that of the proposed 34,974 sites, BDA has formed 30,232. Certain works such as asphalting roads are in progress and are expected to be completed in two months. To continue such infrastructure works, BDA needs funds.
It said for formation of the layout, the state government gave its administrative approval at an estimated cost of Rs 5,337 crore. Of this, BDA incurred an approximate expenditure of Rs 3,370 crore till March 10, 2026. It further expects to incur an expenditure of Rs 1,966 crore. BDA has taken loans from banks to clear the bills of contractors. It has to pay interest on those loans.
The affidavit said BDA is facing financial constraints as it has taken up several other projects such as Nadaprabhu Kempegowda Layout, Arkavathy Layout, and Bengaluru Business Corridor. Hence, to raise funds for various works and to pay interest on loans, it should be permitted to invite applications for sites in Dr Shivaram Karanth Layout.
