The Hindu : Karnataka News : 10-year bar on sale of BDA sites restored

Online edition of India's National Newspaper
Sunday, May 01, 2005

Karnataka

Karnataka

10-year bar on sale of BDA sites restored

Staff Reporter

Curbs on sale of sites by allottees

BANGALORE: The State Government on Saturday issued a notification restricting the sale of sites allotted by the Bangalore Development Authority within 10 years.

Four years ago, the Government withdrew the condition that BDA site allottees could not resell their plots immediately after purchase.

Amendment

The Bangalore Development Authority (Allotment of Sites) (Amendment Rules, 2005), which comes into effect immediately, says: "The allottee shall not alienate the site within the lease period of 10 years, except by mortgaging the site in favour of the Government of India or the State Government, or any other financial institution, for the purpose of securing loan for the construction of the building."

The site allotted will now be deemed to have been leased to the allottee until the lease is determined or the site is conveyed in the name of allottee. During this period, the allottee will have to pay rent to the BDA at the rate fixed by the authority.

The allottee will now execute a lease-cum-sale agreement. If he/she fails to execute the lease-cum-sale agreement within 60 days, the registration fee will be forfeited and the allotment cancelled.

The amount paid by the allottee will be refunded after deducting the expenditure incurred by the BDA.

House construction

The allottee must construct a building within five years from the date of execution of the agreement, or such extended period as the BDA may permit in specific cases. If a building is not constructed within the period, the allotment is liable to be cancelled and the agreement revoked.

The allottee may be evicted from the site and he/she may forfeit 12.5 per cent of the value of the site.

Sale deed execution

When the 10-year period expires, the BDA will call upon the allottee to get the sale deed of the site executed at his/her own cost, within a timeframe, if the allotment has not been cancelled or the lease has not been determined.

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