The BDA board outside their head office.
Credit: DH File Photo
Bengaluru: The Bangalore Development Authority (BDA) has decided to challenge the Karnataka Real Estate Regulatory Authority’s (K-RERA) order, rejecting its plea to remain outside RERA jurisdiction.
Bengaluru Development Minister DK Shivakumar, in a written response to a question raised in the ongoing Assembly session, said the BDA was preparing to file an appeal with the K-RERA appellate tribunal. He argued that the BDA is a statutory body functioning under the Bangalore Development Authority Act, 1976, and that there are significant financial constraints for the BDA to act under RERA norms.
The order was passed on a petition filed over the delay in developing the Nadaprabhu Kempegowda Layout (NPKL).
According to BDA sources, officials felt they could abide by some norms, such as project registration and submission of progress reports. The major concern was compensation and penalties RERA could order in the event of project delays.
"The BDA projects are huge and there are thousands of sites allottees. In such a case, awarding compensation to the allottees becomes a huge financial burden,” one of the sources said.
However, site allottees said it was only fair that the BDA register and bear any compensation ordered since the authority’s failure to provide basic infrastructure in the layout had burdened them.
"It has been nine years since sites were allotted. We are already facing financial difficulties. Many of us, who took a loan thinking we could construct houses soon and move in, are now stuck paying both loan EMI and house rent,” said Suryakiran from the NPKL open forum.
Even after nine years, many sites in the layout do not have approach roads. Work at the layout has been progressing at a snail’s pace, the allottees said.
The BDA, in its earlier argument, stated that it is a statutory authority, not a real estate promoter, and therefore, should be exempted from RERA regulations.
RERA, however, ruled that under Section 2(zk)(iii) of the RERA Act, any development authority or public body that constructs or develops land or buildings for sale to the public qualifies as a promoter.
Responding to the argument that the BDA would operate under the BDA Act, 1976, RERA said the RERA Act has an overriding effect on other laws.