The Real Estate Regulatory Authority Karnataka (RERA-K) has directed the Bangalore Development Authority (BDA) not to collect excess interest from those buyers of BDA sites, who fail to make the payment on time. RERA-K has said that BDA could collect the interest rate on par with marginal cost of funds-based lending rate with additional two percent.
“While the rate of interest on deposits in any national bank is around 8 per cent, the BDA is collecting 18 per cent from us for failure to pay the amount within the stipulated time. We have to pay three per cent (18+3) for the delay in the subsequent months,’’ said a member of Nada Prabhu Kempe Gowda Layout Open Forum.
As per the BDA Act, the allottees have to make payment within 60 days of the allotment of sites. Later, it was extended to 120 days. Now, the BDA has been collecting 18 per cent interest from those who fail to pay the cost of the site and three per cent per month for further delays.
The allottees complain of lack of infrastructure at Nada Prabhu Kempe Gowda Layout. They say that the sites were allotted to them in 2016 but no infrastructure is in place even after four years of allotment.
“The developmental works at the layout are progressing at a snail’s pace. A few farmers are yet to relinquish their lands to the BDA. It will be difficult for those who want to construct buildings at the layout since there is no basic infrastructure,’’ said Anil Navali, a member of Nada Prabhu Kempe Gowda Layout Open Forum.
The allotees want the BDA to distribute the copies of Nada Prabhu Kempe Gowda Layout maps and upload all the information on its website. “There is no information on BDA’s financial position. It creates confusion among the allottees on the BDA’s capability to complete the project,’’ said a member of the forum.
According to reliable sources, the BDA has got time to complete all the developmental works at the layout by December 2021.
When asked about the RERA-K’s directive on collection of penalty from the allottees, BDA Chief Accounts Officer Parashiva Murthy has said the BDA’s Board would discuss the RERA-K’s directive and take a final decision on it.