Purchasing property in Bangalore involves lot of legal complications. However, one can avoid legal complications, by buying a property through Bangalore Development Authority (BDA). BDA has become hyperactive and has been distributing the sites in large numbers. Naturally the people are eager to know the methodology adopted by BDA in allotting sites. This write up gives the broad outlines of the procedure followed by BDA.
Bangalore Development Authority (Allotment of sites) Rules (1984) govern the allotment of sites. These rules are periodically modified.
Whenever BDA forms an extension or layout, it offers the sites in such extension/layout to the general public. Wide publicity will be given mentioning the location, number, area and last date for submission of applications. The details are also published in not less than three newspapers of Kannada and English, which are published from Bangalore, having wide circulation.
BDA is empowered to set apart, 40% of the site to economically weaker section at 50% value of the sites. Out of this 15% of the sites are reserved for Scheduled Castes, 3% for Scheduled Tribes and 2% for the Backward Tribes and remaining sites to economically weaker sections.
BDA may also allot civic amenity sites on lease basis to educational, religious and charitable institutions, which are registered since more than three years under Societies Registration Act, or Trust for public purposes. But such allotment should not be more than 5% of the total site area in each layout.
Only the persons who have registered their names on payment of prescribed registration fee are eligible to apply for allotment of sites.
If the applicant withdraws the registration, the registration fee paid will be refunded after deducting 10% of the amount paid to the applicant. Registration once done is valid for all subsequent attempts.
In case the applicant dies after registration, the spouse of the deceased applicant is entitled to apply for allotment. If the spouse is not alive the dependent children, will be deemed to have registered and have the right to apply for allotment.
The registered applicant or his legal heirs have to apply for allotment of site in prescribed form (Form II). The applicant should also remit 12.50% of the notified cost of the site along with application as initial deposit. The initial deposit payable in case of schedule castes, schedule tribes, and backward tribes is 5%.
Correctly filled application along with initial deposit should reach BDA before the time fixed for receipt of such application. The BDA notification generally mentions the mode of paying the initial deposit, which could be by remitting in certain banks. Completed application forms may also be delivered at the specified branches of the Bank.
In case the application is pending with BDA for allotment and the BDA invites applications for further sites, the applicant should again apply in Form No. II (A), but there is no need to pay initial deposit.
Only a person who is major, and a resident of Karnataka for not less than 15 years prior to the date of registration, and who or whose family members do not own a site or house in Bangalore, or not allotted any site or house by BDA or Housing Co-operative Societies is eligible to apply. In case of officers belonging to All India Services, whose services are allotted to Karnataka State cadre and residing in Karnataka, for not less than two years immediately prior to the date of registration.
The requirement of 15 years residence in Karnataka is subject to relaxation in case of persons who are residents of Karnataka, but being employed in armed forces serving outside Karnataka, gone out of the state for employment, higher education, but have bonafide intention to settle in Bangalore metropolitan area. BDA may also waive this condition with the prior permission of the government, in case of persons who have achieved outstanding performance in field of art, science sports or in any other field.
The allotment of sites to different segments of society on percentage basis is as follows:
a) Backward Tribes – 2%
b) Scheduled Tribes – 3%
c) Scheduled Castes – 13%
d) Members of armed forces, – 10%
Ex-Servicemen and members of
Deceased service men
e) State Government Employees – 10%
f) Employees of Central Government Public Sector – 8%
Undertakings, Statutory Bodies owned or
Controlled by State or Central Government
g) Physically handicapped – 2%
h) General Public – 50%
i) Persons who have outstanding Achievement – 2%
in this field e.g. Arts, Science, sports
If sufficient number of applicants are not available in category A the balance sites will be transferred to category B, then to category C and then to category H (general public) likewise in the absence of sufficient number of persons in category, F, G, I, the balance sites will be transferred to category H (general public).
The word outstanding achievement is defined as achievement at State, National and International level, where an award or a medal is presented by the authorities duly recognized by State or Central Government.
Criteria for Allotment
The parameters for allotment of sites to all categories except, persons with outstanding achievements are: –
1) Marital status of the application, that is whether the applicant is single or married or married having dependent children,
2) Income of the applicant; having capacity to purchase the site and construct a house thereon.
3) Number of attempts made by the applicant.
4) Whether any land of the applicant has been acquired by BDA for formation of layout for which he has applied.
The income criteria in case of scheduled castes, scheduled tribes, and backward tribes is not applicable.
In case of the applicants with equal number of attempts the elder applicants will have priority.
The BDA will constitute an Allotment Committee comprising three official members and three non-official members. The chairman of the BDA shall be the Chairman of Allotment Committee. The allotment of the sites by the committee is subject to approval of BDA.
The BDA reserves its right to alter the value of the sites and the allottee has option either to accept the altered value or decline it.
Post Allotment Procedure
BDA informs the allotment of site to the applicant by a notice sent to the latest known address. The successful allottee shall pay the balance amount of the site value within thirty days from the date of receipt of notice of allotment. This period may be extended to 60 days only at the discretion of the BDA on a request from the allottee. The interest payable on extended period is 18% for the first thirty days and 21% for the next 30 days. On failure to remit the amount within the extended period, the allotment is liable to be cancelled.
The payment period is three years in case of persons belonging to Scheduled Castes, Scheduled Tribes, Backward Tribes, family of defence personnel killed or disabled during hostilities and whose annual income from all sources does not exceed Rs.11,800/- or belonging to weaker section as notified by the government from time to time. The balance amount may be paid in three annual instalments without interest.
On payment of the balance amount of the site value, the allottee will get the sale deed duly executed. The stamp duty, registration charges, incidental expenses should be met by the allottee. If the allottee is married the sale deed can be executed in the joint names of allottee and spouse.
If the particulars furnished in the application form for allotment is found to be false or incorrect, BDA may forfeit the site value deposited and the allotment cancelled.
Earlier, on payment of full value of the site, BDA was executing only Lease cum Sale Agreement, with a condition that the house should be constructed within a period of three years.
The absolute sale deed used to be executed/registered only after the construction of the house and the completion of 10 years lease period. The relevant rules were amended during the year 2000, paving way for executing registration of sale deed on payment of full value of the site. The entire process will be completed in a very short period.
Another interesting aspect is that the BDA rules provide for voluntary surrender of the site at any time to BDA and obtain full refund of the amount paid.
But nobody would surrender the allotted sites to the BDA, as the open market offers attractive rates. Periodical amendments to the BDA (Allotment of Sites) Rules have removed many time-consuming procedures and restrictions. The embargo on sale of the allotted sites is for a period of ten years and construction of the house within three years no more exist. This modification makes people more interested in buying the BDA sites.
In an interesting case, the National Consumer Forum has ruled against BDA. The BDA allotted a site to the applicant, which was later cancelled. The applicant made six attempts, some under government employee category and some under general category. It was contended by BDA that number of attempts under each category have to be reckoned separately for allotment of site. The District Consumer Forum and State Commission decided against BDA, which went in appeal to the National Consumer Forum which upheld the decision of the Lower Forums. The National Commission held that a plain reading of BDA rules makes it clear that at the best it could be held that it is silent on the point on the number of attempts either to read in each category separately or all together. And when the law is silent on a point, the benefit should go to the complainant.
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