A total of Rs 1,000 crore worth high-end plots remain unsold

 BENGALURU: The aim of the Bangalore Development Authority (BDA) of providing affordable housing is at the crossroads. The BDA sites that were seen as a safe bet and the lucrative investments, but not any more. For the first time in the history of authority, several high-end plots that are worth a total of Rs 1,000 crore in its Nadaprabhu Kempegowda Layout (NPKL) have been surrendered or remain unsold. The lack of sales that could not have come at a worse time for the authority, have financially-crippled as it already is.

“About 500 sites [60x40 and 50x80] meant for high-income group have either been surrendered or remain unsold. These were once in demand by politicians and top executives.” said Karunakar Shetty, honorary president of Nadaprabhu Kempegowda Layout Site Owners and Residents Welfare Association. The BDA had developed 500 high-end (50x80) sites, but 150 have surrendered. Later, it had developed that only 300 high-end sites in the second phase, but it received just 271 applications and of these, about 70 are most likely to be surrendered.

“High cost compared to market prices, isolated location and the uncertainty over how long the BDA will take to fully develop the layout are chief reasons for people surrendering plots,” Shetty said.

BM Shivakumar, president, Jayaprakash Narayan Vichara Vedike, said that “The BDA had anticipated a good response and had fixed prices on the higher side. Plots developed by private builders in several layouts near NPKL are 20% to 30% cheaper.”

Another issue is that the allottees have to pay an amount of Rs 90 lakh upfront for the high-end plots whereas those who are buying smaller plots have been given the time to make payments. Also, it has become tough to get such high sums from the banks in the aftermath of demonetisation.

“In spite of NPKL being a RERA-registered project, there is still work left to be done. Under RERA, this project was set a March 2019 deadline, but BDA has conceded that they have only completed 50% work. If they don’t complete the layout before the deadline, it may attract legal cases which could delay it further.” said MS Shankar, secretary of the Forum for People’s Collective Efforts.