Rs 500-crore scam alleged in BDA apartment projects

A complaint has been filed before the Lokayukta in connection with the alleged irregularities to the tune of Rs 500 crore in an apart project of the Bangalore Development Authority (BDA).

RTI activist B M Shivakumar, president of Jaya Prakash Narayan Vedike, has alleged that the BDA hiked the prices by 100 per cent to 200 per cent in its apartment projects where work is yet to commence. 

“The BDA had invited applications from public during 2010-11 and 2011-12 offering apartments at affordable prices. The advertisements claimed that one BHK flat was available for Rs five lakh, two BHK for Rs 7.50 lakh and three BHK for Rs 13.50 lakh. The BDA failed to hand over the flats for over three years, but hiked the prices of flats all of a sudden. More than 500 people have withdrawn their applications because of the price hike,'' Shivakumar said.

He alleged that the BDA concealed the estimated price for each flat, which was arrived at before issuing advertisements. “The construction cost has not gone up in any of the areas where BDA is building the flats.

 An executive engineer of BDA had submitted before the High Court stating that the construction cost at sites like Doddabanahalli is between Rs 1,770 and Rs 2,200 per sq ft whereas the construction cost for an independent house in the same locality is not more than Rs 1,500 per sq ft. How could the construction cost go up when BDA is into bulk project worth Rs 4,000 crore,” he said.

In his complaint to the Lokayukta, Shivakumar has alleged that the BDA has not taken prior permission from the BWSSB, Bescom, the Karnataka State Pollution Control Board and the fire brigade before taking up the project. He alleged the BDA has indulged in unscientific payment schedule for the project by paying crores of money to the contractors as advance.