Money back for ‘probable’ allottees
BDA Will Complete Refunding By August
Bangalore: Two years after
it proposed its Arkavathy layout, the BDA has started refunding
the deposited of its ‘probable’ allottees.
The decision to do so was taken recently,
sources told The Times of India. But the issue had come up
at board meetings after BDA appealed against the April 15
order of Justice V. Gopala Gowda quashing land acquisition
for the layout. Now, cheques are being sent out to these 20,000
individuals along with a letter from BDA expressing its regret
at having to return the money. The entire process is to be
over by August 15.
Officials said if BDA gets a favorable verdict,
it will intimate the ‘probable’ and ask them to
pay back the deposit as well as the sital cost.
Many allottees had dipped into their life
savings to cough up the deposit amounts. Other had taken loans
from banks. These people are now finding things difficult
because, now, the banks want the money back. “Bank lent
the money thinking that the citizen will soon get a site and
title deed and eventually go back to the bank to finance his\her
housing loan. These are all lower middle class people who
want a home of their own, but since the allotment process
is not happening, naturally the banks have issued them notices,”
In fact, insiders say that BDA did talk to
three or four banks some months ago after some citizens complained
that banks were harassing them over the loans.
The amount to be refunded is Rs. 50 crore
to Rs.52 crore. BDA has earned interest (over Rs. 23 crore,
according to one estimate) on that amount but will not be
passing on the benefit to the citizens. But BDA, sources insist,
has already spent Rs. 20 crore to Rs 25 crore on the layout
as fee for contractors, for land acquisition and so on.
But refunding could involve more complications.
In Arkavathy Layout, 20,000 sites were to be formed. Instead,
if BDA gets the nod for a layout with 10,000 sites, half the
probable will lose out. In that case, the number of attempts
made will count.
After BDA went on appeal, BDA commissioner
M.N.Vidyashankar did announce that the ‘probables’
could voluntarily take their deposit money back. Some citizens
did do so. Most of the 20,000, however, preferred to wait
out the court case.
Arkavathy Layout saga
- Layout proposed in 2003.
- Estimated cost Rs 933.47 crore.
- Spread over 2,750 acres in 16 villages.
- BDA collected Rs 981.36 crore as deposit from
2032 lakh applicants.
- Deposits already returned to 2.15 lakh unsuccessful
- Now, BDA is also refunding the 20,000 ‘
- Process to be over by August 15.
Note: if you do not get your cheque by September
1, contact the sepical counter set up at BDA for the BDA general
No’s. 23442271/73/74 asks for extension 277, or contact
the BDA public relations office Ph. 23464064.