The Bhubaneswar Development Authority (BDA) has decided to come up with a new property management and allotment rules with an aim to ease allotments and manage its properties which includes apartments, commercial projects as well as affordable housing units.
The BDA has prepared the draft rule, which called the BDA Property (Management and Allotment) Regulation, 2023, and has invited suggestions and objections on the draft following which it will came into effect after its publication in the Odisha gazette.
According to the draft rule for housing projects, the allotment will be made in two modes such as lottery or auction. The draft rule says that any person, who owns a property or a plot of land in the city, will not be eligible to get allotment in the BDA’s property.
To take part in the allotment process, it is mandatory to register online with BDA followed which a universal account number will be allotted to the buyer. The buyer will then have to deposit 10% of the said property price as earnest money deposit.
The BDA in its draft rule says that the 10% is refundable in case the BDA for any reason cancels the allotment process, but the authority will not pay any interest on the refunded amount.
But according to the rules, if a person gets the allotment but is unable to pay the rest of the amount of the property on time and prays for extension, he or she will have to pay the rest of the amount to the BDA at 12% yearly interest. The amount should be paid within 180 days, it said.
“This is highly obnoxious on the part of the development authority. If we participated in the allotment and pay 10% of the property price and got no result, it is waste of our money and time. The BDA should pay an interest on it when it is asking for the same,” said Patia resident Ratikant Jena.
Piyush Patra, who took part in a recent plot auction of the BDA in the city, said the authority is playing with their money. “I took part in the e-auction and paid the money, but later I got to know that the BDA had cancelled the scheme. I am yet to get my money back,” he said.
Real-estate experts also said the BDA’s draft rule of allotment is arbitrary. “The rules said all the terms and conditions will be prepared by the BDA. It can cancel the allotment at any time and will have the right to choose the allottee. This is one-sided,” said Bimalendu Pradhan, a realtor.
Housing and urban development department secretary G Mathivathanan said the rules are still a draft. The suggestions and objections will be received and the same will be incorporated before publishing the final regulation, he said.