Site allotment scam surfaces in Aircraft Employees' HBCS

Site allotment scam surfaces in Aircraft Employees' HBCS

Violating rules, members sell plots to ex-MLA's father-in-law

Even as illegalities in employees house building co-operative societies remain unchecked, documents reveal that sites have been illegally alloted in Aircraft Employees’ House Building Co-operative Society (AEHBCS) in the city.

According to the documents, former Congress MLA from Nagamangala in Mandya district Suresh Gowda, who is back as the president of AEHBCS, has got the sites allotted in the names of associate members who in turn sold them to his father-in-law in violation of rules. Though the violations were glaring, the society did not act.

Three sites allotted to members were purchased by Suresh’s father-in-law A S Rame Gowda within a few days of allotment. The BDA (Site Allotment) Rules,1984 stipulates that a member shall not alienate or sell the allotted site for a period of five years. After losing the 2013 Assembly elections from Nagamangala, Suresh has again assumed took over as the president of the HBCS.

His father-in-law purchased site number 775A  from a member A Sadashivam, within 12 days of the allotment. Interestingly, when it was allotted to Sadashivam in January 2004 the market value of the site was Rs 12.15 lakh and the allotment price was Rs 4.82 lakh. Rame Gowda bought the same site for just Rs 6 lakh. On November 4, 2011, Rame Gowda gifted the site to his daughter J R Geeta, Suresh’s wife. Later, Geeta sold the site for Rs 50 lakh, while its market value was Rs 1.27 crore.

In the other two transactions, Rame Gowda purchased site number 866 measuring 4,000 sqft from Mani in October 2002 for Rs 2.25 lakh and sold it to one Zaheeda Khanum for Rs 8 lakh. Similarly, Rame Gowda bought another site of the same dimension that was allotted to M Shankara in November 2002 and sold it again to Zaheeda Khanum. All these sites are situated at Singasandra village in Begur hobli.

Suresh was the HBCS president when all these allotments and subsequent sale took place. The sale deeds executed to the members state that they shall not alienate or sell the allotted site for a period of five years. The BDA rules under which the house building co-operative societies are formed also subscribe to the condition that a house shall be constructed within a period of two years. The rule was later amended and the construction time limit was extended to five years. When contacted, Suresh said that the BDA rules on site allotments have been amended. 

“The BDA rules stipulates conditions. However, the society can issue a no objection certificate (NoC) to the allottee to sell the site immediately after the allotment,” he said. However, the former MLA could not provide details of the power rested with the societies to issue NoC to allottees.
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