BDA not keeping word, claim flat allottees

In April this year, the BDA issued an advertisement asking people with income below Rs one lakh per annum to apply for about 800 low cost housing units. BDA promised the applicants that if they were allotted the site, then they could make the payments in installments and that the constructed flats would be handed over to them in a year’s time.

When the applicants got their allotment letters three days ago, they had an unpleasant surprise in store. BDA had changed its earlier conditions and imposed new ones.

One of the allottees Abhinesh S said: “They had originally said they would give us 60 days time between the installments. Now they have suddenly reduced it to just 30 days.”

Banks unwilling

What compounded the problem, according to the allottees, is that no bank is willing to extend them a loan for the house, when no construction has taken place.

“We were told that we would get the flats in a year’s time. Even to this date, BDA has not bothered to go ahead with the construction, except to lay the foundation stone. The banks insist on completion of majority of the construction, before approving the loan. How can we obtain a loan when we have nothing to show” alleged Abhinesh.

Another allottee Lakshmigowda showed the allotment letter which has a new clause. The cost of construction, it says is approximate and the actual cost would be informed to the allottees only after the completion of the construction of the apartments.

“The total cost specified for a two bedroom flat was Rs 5.50 lakh and accordingly we also paid the mandatory deposit of Rs 68,750. Now we can’t get the housing loan to pay the rest of the installments and they are telling us that the cost might escalate as well. How are we supposed to pay the money,” he questioned.

The BDA, which earlier said that it would hand over the flats in a year’s time, later changed its tune and said flats would be handed over a year after the construction began. The allottees have been left wondering when the construction will actually begin.
RTI activist Shivakumar said the BDA issued yet another advertisement on October 13 calling for applications for about 30,000 housing units for economically weaker sections.

Manipulating terms

“If the BDA is lagging behind and twisting the terms and conditions in the construction of 800 units, then we don’t know what will they do on this new project. I think people applying for this should be cautioned about new impossible conditions that BDA might impose in the last moment,” he warned.

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