Landowners in Bengaluru’s Nadaprabhu Kempegowda Layout are facing challenges due to the Bengaluru Development Authority (BDA)’s delay in collecting betterment charges. This impasse has left many unable to sell their properties or build their dream homes. Paying these charges is essential for converting their land status from ‘gramathana’ or revenue site considered illegal to ‘A’ khata, which offers legal recognition and fewer restrictions.
Currently, without an ‘A’ khata, buyers struggle to secure loans from nationalized banks, which refuse financing for properties lacking this status. Private banks charge exorbitant interest rates, ranging from 14% to 18%, leading to exploitation by land mafias who buy at low prices. This situation has significantly depressed real estate values in areas like Seegehalli, Kannalii, and others.
Prashant, a site owner, expressed frustration, stating, ‘I bought the site in a private layout but can’t get a housing loan from a nationalized bank. It will be easier to sell my site or get a loan if the BDA collects betterment fees and issues an ‘A’ khata.’
The BDA has approved the collection of betterment tax in both the Arkavathy and Nadaprabhu Kempegowda layouts, fixing the rate at Rs 80,000 per gunta. However, the Land Acquisition Officer confirmed that a final decision on collecting these charges from landowners in Nadaprabhu Kempegowda Layout is still pending. Farmers like Nagaraj M, eager to pay the charges, are left waiting for the BDA to act.
