BDA Introduces One-Time Penalty for Vacant Sites, Excludes Two Major Layouts

Bangalore Development Authority, BDA has started levying a one-time penalty on the site allottees who failed to construct a house within three years of allocation as per rule notified under the BDA Act, 1976.

This fine, set at 10% of the site’s current guidance value, often amounts to several lakhs of rupees. However, the new rule exempts Arkavathy Layout (2006) and Nadaprabhu Kempegowda Layout (2016) due to the lack of basic infrastructure in these areas.

Despite these exemptions, the move has sparked resistance from site owners in older layouts, such as Sir M. Vishweshwaraiah Layout, which was formed in 2000. BDA Commissioner N. Jayaram defended the decision, stating, “BDA develops layouts to meet housing needs, not for speculative investment. Approximately 15% of sites in older layouts remain vacant, and we are now penalizing these allottees.”

The initiative follows directives from Deputy Chief Minister and Bengaluru Development Minister D.K. Shivakumar, who views the penalties as a means to generate additional revenue. However, the exact financial impact remains uncertain, as the penalty depends on the guidance value of the site in each area.

Critics argue that the BDA’s delays in providing infrastructure have made it difficult for many allottees to build homes within the mandated timeframe. A Vishweshwaraiah Layout allottee shared his frustration, saying, “For over a decade, BDA didn’t provide basic amenities. By the time they did, I was over 50 and unable to secure a housing loan.”

Similarly, Shivaprakash, an allottee in Arkavathy Layout, revealed that litigation issues delayed the clearance of his site for over 17 years. “Now, I am over 50, and no bank will give me a loan. BDA is yet to provide electricity and roads in many blocks,” he lamented.

Civic activist Ashwin Mahesh criticized the BDA’s inefficiency, questioning why its planning and execution are consistently misaligned. He suggested separating the authority’s planning and infrastructure development functions to address such issues effectively.

While the BDA hopes this penalty system will spur development and deter land speculation, allottees continue to grapple with the agency’s delays and shifting priorities.