BDA to auction 3,370 corner sites in Kempegowda Layout

The Bangalore Development Authority (BDA) has decided to auction 3,370 corner sites of the Nadaprabhu Kempegowda Layout (NPKL) and use the funds to meet the additional expenditure needed to develop the under-construction layout.

The authority expects to earn a minimum of Rs 1,500 crore by auctioning the 3,370 sites.

While the additional funds may speed up the ongoing slow pace of formation work, the allottees insist that the BDA create an escrow account and use the funds — collected from auctioning the corner sites — only towards developing this layout.

Sites in NPKL were first allotted in 2016 and again in 2018. 

“We are short of funds to develop the layout. We will start auctioning corner sites of the Kempegowda Layout in a phased manner,” said BDA Commissioner M B Rajesh Gowda. “So far, we have spent around Rs 2,400 crore on the layout. What we have collected from the allottees is just about Rs 2,060 crore and another Rs 300 crore is yet to be deposited to us by the allottees,” he said. 

The BDA, which has acquired around 2,640 acres to develop the layout, has already allotted 10,000 sites in the general category. When it was first allotted, each square feet of land cost around Rs 2,000. The authority has now kept the base price per square feet at Rs 3,200. This means, a 30x40 site would cost around Rs 38 lakh. 

So far, the BDA has been able to complete about 50% of the work pertaining to providing water supply, underground drainage (UGD) and electrical lines. The authority is way behind its schedule of providing basic amenities although it had promised to complete it by December this year. 

BDA Chairman S R Vishwanath said the authority would seek an extension of three to six months from the Karnataka Real Estate Regulatory Authority (K-RERA).

“The Covid-19 restrictions cut down the speed of work,” he said. “Much of the targeted water supply and UGD works are nearing completion,” he said. 

As much as the layout still resembles a village with no water or electricity connection, only one allottee has dared to build the house. The BDA has not taken any steps to asphalt the layout roads, too. 

Escrow bank account

As the BDA plans to auction corner sites, the allottees want the authority to use the revenue only towards developing the layout.

“The BDA should create an escrow bank account,” said Surya Kiran, a member of the NPKL Association.

“The BDA has not been able to complete the work of providing basic amenities even after allotting the sites nearly five years ago. The delay with respect to completing the works might discourage many from participating in the auction.”

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