BDA to cancel allotment letters of flats if full amount is not paid by the end of the year

This comes close on the heels of the BDA increasing the application and registration fees

The Bangalore Development Authority (BDA) has decided to cancel the allotment letter of BDA flats of beneficiaries who do not pay the whole amount by December 31 this year.

“BDA has built 1,2, and 3 BHK flats in various parts of the city, and has already allotted them to the beneficiaries after receiving the advance amount. However, over a hundred beneficiaries are yet to pay the full amount even after issuing multiple notices. Hence, we have decided to cancel their allotment letters if they do not pay the remaining amount by the end of this year,” a senior BDA official said.

The official said the beneficiaries were expected to pay the amount in four instalments. The official added that interest amount was to be paid if the beneficiaries do not pay the whole amount on time.

“However, in a meeting held in August this year, it was decided not to impose the interest amount. Hence, only the prescribed final amount is to be paid now,” he said.

This comes close on the heels of the BDA increasing the application and registration fees of flat and site purchase, and penalties.

However, this decision of the BDA has not gone down well with the public as they argue that such flats were specifically meant to benefit the low and middle income groups, and cancelling the allotment letter amidst the pandemic would be grave injustice.


Suryakiran A.S. of Nadaprabhu Kempegowda Layout Open-Forum said that more time should be given as people were under deep financial stress due to the pandemic.

“Such flats are generally bought by low income group and middle income group. They will not be able to arrange funds now. With job loss and pay cuts, getting loans is also not an option,” he said. He said that as the RBI and the banks had introduced moratorium on home loans, BDA could provide a moratorium for the payment of fees.

B.M. Shivakumar, president, Jayaprakash Narayan Vichara Vedike and an RTI activist, said that the BDA had not given basic facilities, including water, sewage and proper road and transport connection, to various such flats, and even that could be the reason people might not have paid the full amount.

“Instead of troubling the common people, the BDA should first provide proper facilities. In many places, the projects are incomplete. Let them finish them first,” he said.

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Sagar Biswas

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