BDA revises penalty for vacant sites

The Bangalore Development Authority (BDA) has revised its penalty structure for vacant sites where owners have failed to begin construction within the stipulated timeframe.

The new system introduces a graded penalty ranging from 2.5 per cet to 10 per cent, depending on the size of the plot.

According to a circular issued on February 11, the revised penalty will apply to allottees who have not commenced construction within the timeline specified in their lease-cum-sale agreement.

This decision was made during the authority’s meeting on December 30.

Allottees who choose not to pay the penalty may surrender their site to the BDA. In such cases, 12.5 per cent of the amount paid will be deducted, with the remaining balance refunded.

The revised penalty structure does not apply to the Nadaprabhu Kempegowda Layout or Arkavathi Layout.

Vacant site penalty

The revised 'vacant site penalty' will be calculated as a percentage of the prevailing guidance value, based on plot size:

2.5 per cent for sites up to 600 sqft
5 per cent for sites ranging from 601 to 1,200 sqft
7.5 per cent for sites ranging from 1,201 to 2,400 sqft
10 per cent for sites larger than 2,401 sqft

These new rates will be applied retroactively from September 23, 2024.