KG Layout Phase 1 site owners get bank notice

KG Layout Phase 1 site owners get bank notice

Kempegowda Layout in West Bengaluru was the first layout formed by the BDA after Arkavathy Layout.

Kempegowda Layout first phase allottees have been slapped bank notices, directing them to start construction of houses immediately, failing which their housing loans will be converted to commercial loans.

Around 60% of the allottees were served notices on March 1 from private and nationalised banks.

Now, worried allottees are approaching the Bangalore Development Authority (BDA), demanding written communication that infrastructure works are yet to be completed, which has led to the delay in the construction of homes. They say this will help them secure more time from the respective banks.

BDA officials seem ignorant of the issue altogether. “I will check and take immediate action,” said Shivashankar B, engineer member, BDA.

Banks served notices after the time line lapsed. According to bank rules, after taking a housing loan, construction should start within the set stipulated time - 21-36 months - failing which the loan is considered commercial, thus attracting a high interest rate.

Kempegowda Layout in West Bengaluru, was the first layout formed by the BDA after Arkavathy Layout, which had landed in multiple legal hurdles. Around 5,000 sites were allotted to citizens in the first phase, of which over 500 allottees returned their sites because of high prices.

Allottees said till date even basic facilities, including water and sewage lines, are absent. Many pointed out that sites have not yet been demarcated.

Vinay M, an allottee, said the demarcation stones are missing. This makes it impossible for him to measure the site. His father was allotted a 30X40 site after seven attempts, at a cost of Rs 25 lakh in Kannahalli. “I was first served a notice to pay property tax and now a bank notice to construct home. Banks give 21 months to start construction and the BDA gives five years. But, it looks like the BDA will also have to extend the time as there is nothing at present on the ground,” he said.

Nagaraj Shenoy, allottee of a 40x60 site in Ramasandra said: “These sites were given to us at market rates, without any concession. So, we have the right to demand and question the BDA. I paid Rs 52 lakh for a site and still am unable to construct. Even if the BDA fast-tracks work, it will take at least two years. With the current pace it will not be completed even after five years.”