BDA struggles to recover Rs 3,503.64 crore in development charges, ET RealEstate

January 17, 2025
1 min read
BDA struggles to recover Rs 3,503.64 crore in development charges, ET RealEstate


<p>Representative image </p>
Representative image

The Bangalore Development Authority (BDA) is owed a staggering Rs 3,503.64 crores in development charges from property owners of residential and commercial buildings in the Arkavathi and Nadaprabhu Kempegowda layouts. Despite having constructed their properties before layout development was completed, these owners have yet to pay the stipulated charges.

Sources said that BDA has spent a significant amount developing infrastructure across its layouts, and many residents are already benefiting from these facilities. Yet, the pending charges, predominantly from Arkavathi Layout (Rs 3,307.91 crores) and Nadaprabhu Kempegowda Layout (Rs 195.72 crores), remain a significant financial burden.

An official said, “BDA had acquired 2,750 acres of land for Arkavathi Layout in 2003 and developed Nadaprabhu Kempegowda Layout over 4,043 acres. Currently, it is also working on Shivaram Karanth Layout over 3,546 acres. In these layouts, BDA has mandated development charges from property owners to fund the provision of essential infrastructure such as roads, streetlights, and drainage systems. However, many property owners have either delayed or avoided paying these charges. As a result, BDA is struggling to gather the funds required to provide necessary infrastructure across these layouts. The authority is now seeking to recover the outstanding charges through legal provisions under Section 20 of the BDA Act.”Sources said that the development charges are calculated based on prevailing guideline values. For instance, in Arkavathi Layout, owners are required to pay Rs 336 per square foot, while in Nadaprabhu Kempegowda Layout, the rate is Rs 276 per square foot.
For landowners in areas where de-notified plots were included, charges have been fixed at Rs 1.5 crore per acre in Arkavathi and Rs 32 lakh per acre in Nadaprabhu Kempegowda Layout.

An official said, “A significant portion of the pending charges stems from unauthorised constructions. Some private developers constructed layouts illegally without obtaining necessary conversions or approvals, while others built homes years ago but have not paid development fees. The BDA has now issued notices to thousands of such property owners, offering them an opportunity to regularise their assets by paying the required charges.”

The process of land acquisition and layout development has faced delays due to legal disputes and procedural challenges. Deputy Chief Minister DK Shivakumar stated in legislative sessions that no immediate action will be taken against officials until ongoing policy revisions and legal issues are resolved.

For properties in Shivaram Karanth Layout, development charges have also been set based on guideline values. A total of 5,171 buildings regularised by the Justice Chandrashekhar Committee in 17 villages will need to pay charges to obtain property records, said an official.

  • Published On Jan 18, 2025 at 09:04 AM IST

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