It’s no draw: BDA increases flat rates by two times
After sites, it’s now the turn of flats to become costly. The Bangalore Development Authority (BDA) has hiked the prices of flats by almost 100%-200%, which is being held responsible for crushing the dreams of the common man to buy their own home in city. BDA is planning to sell its 2BHK flats of its upcoming projects at not less than Rs 25 lakh. BDA also has sent notice to over 3,000 home buyers who’ve won flats in a recent lottery, to pay Rs 10 lakh to Rs 15 lakh, depending upon the type of house.
A source says that the idea to increase price was taken in a recent BDA board meeting. Mr. BM Shiva Kumar, an RTI activist, says that there are several rules in the Karnataka Apartment Ownership Act that prevent private developers from swindling buyers, but with this step, it seems that BDA is just cheating with the average citizens. This is because there are only officials on the Board and they don’t have any relation with the feelings of common people.
People who’ve won 2BHK flats, have started getting notices from the BDA, informing them to pay an additional amount of Rs 10 lakh over the original price of Rs 7.5 lakh, fixed at the time when BDA had invited applications in 2012. Allottees of 3BHK homes will soon get notices to pay up Rs 15 lakh more for the flats they won.
The sudden rise in BDA flat’s cost has sent people to start arranging the finances, whereas some have simply given up. Mr. Puttamma says that in last 2 years, it has been difficult for him to pay Rs 7.5 lakh and had borrowed loans on interest from moneylenders. For which, he says, he had to pay Rs 1-2 lakh more. But, BDA notice to pay Rs10 lakh more has crushed all my hopes. Some private builders are providing 2BHK flats of good quality with some additional features, for a little higher price than BDA flats.
Mr. K Somashekar says that the increase of price will hurt buyers of 3BHK flats even more as they have to pay an additional Rs 15 lakh. He also added that it is a wise plan of BDA to discourage the middle class to buy their flats.
Mr. Shiva Kumar strongly rejects this theory but saying that the land where the flats are being constructed was bought by the BDA for just Rs 2 lakh per acre, after the Special Task Force recovered this encroached government land in and around Bangalore. Whereas the development cost has not reached the level of Rs 1100 sqft.
Source: The Times of India
Bangalore, Bangalore Development Authority, BDA, bda has hiked the prices of flats, BDA increases flat rates, BM Shiva Kumar, increases in flat rates by two times, K Somashekar, Karnataka, Karnataka Apartment Ownership Act, Puttamma, RTI
