Friday, February 21, 2014

Article regarding “ALLOTMENT OF SITES BY BDA”

Bangalore Development Authority 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 authority forms an extension or layout; 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 ofapplications.  The details are also published is not less than three newspapers of Kannada and English, which are published from Bangalore having wide circulation.

Authority is empowered to set apart, 40% of the site to economically weaker section at 50% value of the sites; out of this the 15% of the sites are reserved to Scheduled castes, 3% to Scheduled Tribe and 2% to the Schedule Tribes and remaining sites to economically weaker sections.

BDA may also allot sites on lease basis to educational religious, charitable institutions, which are registered 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.  Further sites reserved for civic amenities, public parks and playgrounds cannot be allotted in such manner.

Only the persons who have registered their names on payment of prescribed registration fee are eligible to apply for allotment of sites. The registration fee at present is as follows: -

 Site in sq. Mts.                                                            Fee                                                  
           a) 350 and above                                      Rs. 2,000/-
           b) 225 above but below 350                       RS.   500/-
           c) Below 225                                             Rs.   100/-

If the applicant withdraws the registration the registration fee paid less 10% will be refunded to the applicant.  Registration once done is valid for any 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 area have right to apply for allotment.

The registered applicant or his legal heirs have to apply for allotment of site in prescribed from (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, are backward tribes is 5%.

The correctly filled application along with initial deposit should reach the authority before the time fixed for receipt of such application.  The BDA notification generally informs the mode of paying the initial deposits, by remitting to certain banks.  The completed application forms may also be handed over the specified branches.

In case the application is pending with BDA for allotment and the authority invites applications for further sites, the applicant should again apply in from II (A), but there is not 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 does not own a site or house on Bangalore, or not allotted any site or house by BDA or Housing co-operative societies is eligible to apply.

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; have 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 or in any other field.

a)        Backward tribes                                     - 2%
b)        Scheduled Tribes                                    - 3%
c)        Schedules 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            - 8%
           Public Sector Undertakings,
           Statutory Bodies owned or
           Controller by State or Central
g)        Physically handicapped                            -2%
h)        General Public                                        -50%
i)         Persons who have outstanding                  -2%
           Achievement 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, international level, where an award or a medal is presented by the authorities duly recognized by state or central government.

The parameters for allotment of sites to all categories except, persons with outstanding achievement are: -

1)        Material status of the application, that is whether the applicant is single, married having dependent children,

2)      Income of the applicant; avid capacity to purchase the site and construct a house there on.

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, Backward castes 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 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 value of the sits, and the allottee has option either to accept the altered value or decline it.

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 receipt of the notice of allotment. This period may be extended to 60 days only at the discretion of the BDA on request from the allottees. The allottee has to pay interest at 18% for the extended period on failure to remit the amount within the extend period; the allotment is liable to be cancelled.

The payment period is three years in case or persons belonging to Scheduled castes, schedules tribes, backward tribe, family of defense personal killed or disabled during hostilities and whose annual income from all sources does not excess Rs.1,800/- or belonging to weaker section as notified by the government from time to time.  The balance amount may be paid in three annual installments without interest.

On payments of the balance amount of the site value the allottee will get the sale deed duly executed. The stamp duty, registration charges, incidental expand should be met by the allottee.  If the allottee is married the sale deed will be in 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, the Bangalore Development Authority 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 construction of the house and the completion of the 10 years lease period.  The relevant rules were amended during year 2000, paving way for execution 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 the full refund of the amounts 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 sale of the allotted sites for a period ten years, construction of the house within three years nor more exists.  This modification makes people more interested in buying the BDA sites.

With regard to number of attempts in an interesting case, the national consumer forum has ruled against BDA.  The authority allotted a site to the applicant, which was later cancelled. The applicant has made six attempts, some as government employee 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 lower forums. The national commission held hat plain reading of BDA rules makes it clear that at best it is silent on the point, that number of attempts to read in each category separately, or altogether, so when law is silent on a point, the benefit should to the complainant.

Disposal of stray sites, commercial sites, and corner sites is governed by a different set of rules.

BDA has a responsibility to the people.  It is necessary that various rules that govern the BDA’s activities made known to the paying public.  Authority should come out with simple andupdated version of the acts/rules, and be made available to the public at affordable price.

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