The BDA has delayed in allotment of sites to the beneficiaries which has resulted in hardship to the owners for getting loans from Banks
BENGALURU
Due to decades of delay, the Bengaluru Development Authority (BDA) has plunged the residents of the ambitious Nadaprabhu Kempegowda Layout (NPKL) project into a serious financial crisis. Due to the non-handover of the plots on time, the residents are facing a difficult situation due to their age to get loans from banks for house construction. Several residents have expressed their grievances to BDA Commissioner Major Manivannan via Twitter.
Thousands of plot owners, who were in their forties when the plots were allotted, were unable to build houses as the BDA took nearly nine years to complete the infrastructure development. Generally, nationalized banks refuse to provide loans to those above the age of 55 for housing construction. As a result, many senior plot owners are now unable to get loans. Many plot owners are now close to retirement age. They are already retired. Even though the interest rates on loans are low, getting bank loans is a big challenge for these senior citizens. Retirees are inevitably forced to take loans from NBFCs at high interest rates.
Banks are not only citing age but also legal complications of the layout as reasons for denying loans. Major banks, including HDFC, have pointed out that the banks have listed Kempegowda Layout as a non-RERA compliant and incomplete layout. In addition, bank officials have also mentioned that land acquisition issues are still pending in the layout.
The Greater Bengaluru Development Authority has now planned the Kempegowda Layout in 4040 acres, but despite the passage of decades, development work has been completed in only 2,800 acres. The land acquisition process for about 1,200 acres is still pending. After the Arkavati Layout, the NPKL also remains incomplete, which is a cause for concern for the site owners.
BDA Commissioner Major Manivannan, who has acknowledged this serious problem, has instructed his team to discuss this with the banks and find a solution. There has also been a demand that the BDA should immediately abolish the penalty for plot owners who are unable to get loans.