BDA seeks exemption from RERA, sparks accountability debate

Bangalore Development Authority argues it is a statutory planning body, not a real estate promoter, while activists warn exemption from RERA could erode transparency.

The Bangalore Development Authority (BDA) has urged the Real Estate Regulatory Authority (RERA) to exempt it from oversight, insisting that it is a statutory planning body and not a real estate promoter. The request was made in response to a petition concerning delays in the much-anticipated Nadaprabhu Kempegowda Layout.

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In its submission, the BDA argued that its residential layouts are part of government-mandated town planning schemes, aimed at regulated urban growth and providing plots at affordable rates, including for economically weaker sections. Unlike private developers, it said, the Authority does not operate for profit.

“The provisions of RERA are designed for private promoters executing smaller projects. The BDA functions under statutory obligations and large-scale schemes, so applying RERA in a straitjacket manner is inappropriate,” the Authority maintained. It also emphasized that disputes must be resolved under the BDA Act and Allotment Rules, 1984, since acceptance of allotment implies consent to these conditions.

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However, homebuyers and activists strongly opposed the move, warning that excluding the BDA from RERA would undermine transparency and accountability. “Projects are delayed for years. If BDA is exempt, citizens lose the only forum to question them,” said MS Shankar, General Secretary of the Forum for People’s Collective Efforts.

Shankar noted that this is not the first time BDA has tried to escape RERA’s ambit. “The Housing and Urban Affairs Ministry had earlier rejected a similar request. RERA is a central law that overrides state statutes,” he added.

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Activists stressed that keeping BDA under RERA ensures legal recourse for allottees, while exemption could leave them without remedies for project delays. The outcome of this case will decide whether BDA qualifies as a “promoter” under the Act, a ruling likely to set a significant precedent for government agencies across Karnataka.

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