20 years, but no site: Vijaya Bank staff's dreams dashed

Bengaluru: When employees of the erstwhile Vijaya Bank pooled their hard-earned savings for a housing project, they dreamt of owning a modest site on Bengaluru's outskirts and retiring in peace. 

Twenty years later, most are already retired but the sites never came. And according to a damning government inquiry report, it may never come. 

The origins of the issue date back to 2005-06 when the Vijaya Bank Employees Housing Co-operative Society — following the success of creating a residential layout in Bilekahalli on Bannerghatta Road — entered into an agreement with SPR Developers, a private firm, to form a new residential layout in Bidadi. 

Over 1,700 members of the society had then paid a total sum of Rs 85.45 crore towards acquiring 126 acres of land spread across five villages. However, a substantial portion of the land — over 56 acres — was later found to have defective title and possession issues. Only about 70 acres of land had proper titles but was non-contiguous, which meant it was unfit to form a proper layout. 

As negotiations with the developer failed, the society took the matter to the Karnataka High Court. 

In April 2013, a consent arbitration award was passed, ordering the developer to pay Rs 185 crore, including interest. The society was asked to return the 126 acres to the developer. But the developer failed to comply with the terms and defaulted on payments. 

When execution proceedings were initiated in 2015, the court eventually issued arrest warrants against six directors of the private firm in March 2021. Those warrants were never executed, rendering about 26 court hearings — which went on for several years — meaningless. 

A new director board of the society — which had assumed charge in February 2020 — chose to take the matter out of court for settlement. As per the terms, the society decided to retain control over 111 acres of land even though half of it was under title dispute. Among other decisions, the society also chose to transfer about 14 acres of land back to the developer. 

However, in its inquiry report dated May 2023, the assistant registrar of cooperative societies observed that the society's board of directors "colluded" with the developer, causing it financial loss. 

It found that the society had transferred 6 acres and 34 guntas of land — which is highly valuable — for just Rs 4.50 crore. It also questioned the society’s rationale behind holding settlement terms with the developer when the 15-year legal battle was in the fag end of a resolution. The assistant registrar also termed the settlement deal "illegal". 

Vishwanath Naik, president of the society, said the Bidadi project had run into problems only because the former directors acquired disputed land. 

"I am trying to fix the issue. Even the terms of the settlement were finalised based on the decisions taken at three general body meetings. Had we continued the legal battle, we may have never recovered the dues nor the land," he said. 

Naik, who was elected to the post twice in a row, said the project is finally moving in the right direction. "We have got about 60 acres of land which is right next to Mysuru Road. This piece of land has access to the road and the development will begin very shortly," he said. 

Some members, however, alleged that the society went on to sell about 19 acres of land in 11 transactions even after the joint registrar of the cooperative societies rejected the board's request to sell its properties. 

A representative of SPR Developers did not respond to DH's phone calls and text messages seeking comment. 

Meanwhile, the society — under pressure from members — has filed a fresh execution petition before the court, claiming recovery of Rs 185 crore, which has now escalated to Rs 644 crore, from the developer. For 1,703 families, the wait continues.