The Bangalore Development Authority (BDA) is preparing to open applications for residential sites in the Shivaram Karanth Layout, a move that hinges on securing permission from the Karnataka High Court. Deputy Chief Minister D.K. Shivakumar indicated the BDA will file an affidavit seeking this approval, a step crucial for generating funds from site allocations. This development comes amidst ongoing complexities concerning land acquisition and compensation.
The BDA plans to allocate approximately 10,000 to 12,000 sites to the general public, with a priority for land-losing farmers under the existing 60:40 compensation scheme. These farmers are entitled to a significant portion of the sites, with around 9,555 sq ft designated for them.
A persistent issue involves a firm that failed to transfer land to the BDA for the layout, despite court orders. Initially asked to pay ₹188 crore, the firm's continued non-compliance led the court to demand ₹644 crore. The BDA's ability to proceed with site allocations and collect revenue is directly linked to resolving these land acquisition disputes and obtaining judicial consent.
Read More: Andhra Pradesh RERA: Builders Must Get Permission Before Starting Projects
The Shivaram Karanth Layout, situated in North Bengaluru, is described as one of the BDA's last major layout projects due to the inherent challenges in land acquisition and development. The BDA has reportedly invested close to ₹1,800 crore in the project, which is intended to comprise 34,000 sites in total.
Discussions and demands from farmers continue regarding compensation. Representatives from 17 villages have met with BDA officials, raising objections to the exclusion of commercial sites, corner plots, and those along major roads from their compensation packages. Farmers are also questioning the methodology behind 'betterment charges,' which are calculated based on pre- and post-development guidance values.
The price for sites of dimensions 20×30 sqft and 30×40 sqft has been set by the BDA Board at Rs 3,650 per square foot. This is notably lower than the prevailing market rate in the vicinity, estimated at Rs 6,000 per sqft. The BDA has indicated that once pricing is finalized, a notification for general public allotment will be issued.
Read More: Karnataka High Court questions plan to allow illegal digital signs in Bengaluru
Site allotments for land losers have been in abeyance for approximately a year. The High Court has since permitted the BDA to allot developed land as compensation to these individuals, a move welcomed by the affected parties, though some are demanding commercial sites as part of the settlement.
Background: A Protracted Development
The Shivaram Karanth Layout has been a project marked by delays and legal entanglements since its inception. The BDA's approach to site allocation has been complex, involving multiple stakeholder groups with differing demands.
Priority Allotment: Land losers and farmers who relinquished their land under the 60:40 scheme are slated to receive the first preference.
General Public Allotment: A substantial number of sites, estimated between 10,000 and 12,000, are earmarked for the general public through an allotment process.
Pricing Structure: The BDA has fixed prices for specific plot sizes, reflecting a differential from current market valuations.
Legal Hurdles: A key impediment has been the BDA's reliance on court intervention to resolve disputes related to land acquisition, particularly concerning a firm's failure to transfer ownership and make stipulated payments.
Farmer Demands: Beyond residential plots, farmers are advocating for inclusion of commercial properties and prime locations within their compensation packages, arguing that betterment charges are not applied equitably.
Project Scale: With an estimated 34,000 sites planned, the Shivaram Karanth Layout represents a significant undertaking for the BDA, potentially one of its final large-scale layout formations.