BDA plans stricter penalties for 68,000 vacant plots in Bengaluru

BDA plans slab-based fines on 68,000 vacant Bengaluru plots, pushing timely construction and curbing long-term land banking

The Bangalore Development Authority (BDA) is considering tougher penalties for residential plots that remain vacant beyond the mandated five-year construction deadline. The proposal, currently under discussion, could impact more than 68,000 sites across 64 layouts in Bengaluru, many of which have been held for decades without development.

Current Rules and Compliance Issues

Under existing regulations, allottees are required to complete house construction within five years of allotment. Failure to comply attracts penalties, with a 10% revision linked to guideline values introduced in 2024. However, compliance has remained poor, as many owners continue to hold plots purely for investment purposes.

Proposed Slab-Based Penalties

The BDA is now examining a slab-based penalty system to discourage land banking and push timely construction. The proposed fines include:

•             2.5% for smaller plots

•             5% for 30×40 ft sites

•             7.5% for 40×60 ft sites

•             10% for 50×80 ft and larger plots

Officials say the move aims to reduce inconvenience caused by long-vacant sites and ensure planned urban development.

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Cancellation and Refund Rules

Construction timelines have evolved over the years—from two years initially, then three, and now five. If owners fail to build within this period, BDA can deduct 12.5% of the site value and refund the balance upon withdrawal. Many allottees, however, approach BDA for sale deeds decades later, at which point penalties are collected.

Areas with Vacant Plots

Vacant sites are concentrated in older layouts such as Jayanagar, BTM Layout, Banashankari, Anjanapura, HAL Layout, HBR Layout, JP Nagar, Nagarbhavi, Koramangala, HSR Layout, and Indiranagar. In contrast, newer layouts like Nadaprabhu Kempegowda and Arkavathi have seen better utilisation. BDA data shows over 20,000 plots are also tied up in disputes.

Next Steps

BDA Commissioner Manivannan confirmed that the proposal was discussed in a recent management meeting and will be examined further before a final decision is taken. If approved, the new penalties could significantly reshape Bengaluru’s residential landscape by discouraging speculative landholding and encouraging timely construction.

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