BDA violating RERA rules, say KG Layout allottees

The BDA wants the deadline for the completion of KG Layout extended to December 2021.

Upset site allottees approached the Real Estate Regulation Authority (RERA) over the BDA’s failure to complete the KG Layout on time.

The RERA agreement available with DH shows the Bangalore Development Authority (BDA) appealing to the regulator to extend the deadline to December 2021 citing pending layout works. The earlier deadline was March 31, 2018.

In a letter to RERA, the NPKL Open Forum accused the BDA of flouting regulations. It said the authority followed the rules only once, in collecting the full amount for the site from the allottees by 2018, while the work is still pending. 

Commenting on the BDA’s latest move, forum member Suryakiran said: “As per the BDA plan, this is a 12-year-old development project, for which full site costs were collected from registered site owners six years ahead of the completion date, without disclosing a timeline of works.”

“The BDA claimed there was no delay in the project’s completion, but failed to give physical possession of the sites to the owners. It has just issued possession certificates without completion certificates,” Suryakiran claimed.

Confirming the BDA’s request, RERA officials said the case was yet to be heard.

“They have applied for an extension. During the hearing, we will know the reasons for the delay, and later decide on the action,” Karnataka RERA chairman M R Kamble told DH

The BDA admitted to having asked for the deadline extension.

“We have explained in detail the reasons for the delay in the renewal proposal. Many pending works are being carried out at a brisk pace. We will stick to the latest deadline. The regulatory authority is yet to hear the case. We can only comment after that,” BDA engineer member Shivashankar B said.

Sale deed silent on project completion deadline

Some of the other violations of the Real Estate (Regulation and Development) Act, 2016, by the Bangalore Development Authority (BDA) were
listed as follows by the NPKL Open Forum.

The BDA allotted approximately 5,000 sites in KG Layout Phase 2 in November 2018, while the RERA registration certificate expired on March 31, 2018, which is now due for renewal.

The civic body collected 12.5% of the site value as initial deposit from applicants, while the rules clearly say it should not exceed 10% of the plot value.

The project completion date was not disclosed through media advertisements.

Neither was there an agreement of completion date after full payments towards the site nor was anything mentioned about the project completion on the lease/sale deeds.

Moreover, the BDA collected penalties from the allottees at the rate of 18% and 21% per annum for the balance amount for delayed payments.

But the rules say the
rate of interest payable by an allottee to promoter or promoter to an allottee must be as per the SBI’s prime lending rates plus 2% only.

Even the layout sanction plan has not been uploaded to the BDA’s website, leaving the site owners clueless.

According to the allottees, the extension of the completion date is a “deliberate move to evade the rules by not paying compensation for the delay in project completion”.

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