BDA unveils new graded slabs from 2.5% to 10%

Bengaluru: The Bangalore Development Authority (BDA) has revised the penalty structure for owners of vacant sites who fail to commence construction within the stipulated time. Under the new framework, a graded penalty slabs ranging from 2.5 per cent to 10 per cent will be imposed depending on the size of the plot.

According to a circular issued on February 11, the revised penalty will apply to all allottees who have not begun construction within the timeframe specified in their lease-cum-sale agreement. The decision was taken at the Authority’s meeting held on December 30. As per the revised structure, the ‘vacant site penalty’ will be calculated as a percentage of the prevailing guidance value of the property, based on the plot size. Sites measuring up to 600 square feet will attract a penalty of 2.5 per cent. Plots between 601 and 1,200 square feet will face a 5 per cent penalty, while those between 1,201 and 2,400 square feet will be charged 7.5 per cent. For sites larger than 2,401 square feet, the penalty will be 10 per cent. The new rates will come into effect retrospectively from September 23, 2024.

Site owners who are unwilling to pay the penalty may surrender their plots to the Authority. In such cases, 12.5 per cent of the amount paid will be deducted and the remaining balance will be refunded. However, the revised penalty structure will not apply to sites allotted in Nadaprabhu Kempegowda Layout and Arkavathi Layout, the BDA clarified.