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K-RERA hears NPKL plot owners' plea for compensation, panel to monitor BDA

#Law & Policy#India#Karnataka
Synopsis

Allottees of Nadaprabhu Kempegowda Layout (NPKL) appeared before K-RERA demanding compensation from BDA for long delays in providing basic infrastructure like roads, water, and sewage. During the hearing, the allottees urged K-RERA to direct BDA to pay interest-based compensation and proposed a monthly interim amount for each month of delay. They also suggested forming a supervisory committee to monitor progress, similar to one appointed by the Supreme Court in another layout case. BDA blamed land acquisition and administrative issues. K-RERA chairman acknowledged the allottees' claims and promised action. Another hearing is scheduled for next month.

Site allottees of Nadaprabhu Kempegowda Layout (NPKL) appeared before the Karnataka Real Estate Regulatory Authority (K-RERA) last week, demanding compensation from the Bangalore Development Authority (BDA) for failing to provide basic infrastructure, even years after full payments had been made.


NPKL is a large housing layout developed by BDA, meant to provide residential plots to the public. However, despite the allotment of sites, the promised infrastructure-such as roads, water supply, sewage, electricity, and drainage-has not been completed. Many site owners have been left waiting for years, unable to construct or occupy their plots due to the lack of basic facilities.

A hearing was conducted by K-RERA to address complaints filed by frustrated site allottees. Tensions ran high during the session, with site owners accusing BDA of negligence and demanding compensation. The hearing, however, ended in adjournment after intense debates on procedural issues and differing views on compensation eligibility.

The site owners urged K-RERA to direct BDA to pay them compensation for the delays. They cited K-RERA rules and asked for interest-based compensation calculated at the SBI lending rate of 9%, with an additional penalty of 2%. They also demanded interim monthly compensation of Rs 100 per square metre for each month of delay, starting from the date they had completed full payment.

Additionally, they pushed for the formation of a supervisory committee to oversee the completion of infrastructure works. They drew parallels with the Supreme Court's intervention in Dr Shivarama Karanth Layout, where a committee was formed to monitor progress. The allottees believe that a similar committee could prevent further delays and ensure transparency.

BDA, represented by an appointed advocate, argued that the delays were primarily due to challenges in land acquisition and other administrative hurdles, which were beyond its control. However, the allottees did not accept this explanation, accusing the authority of failing in its legal and moral responsibility.

They also demanded that BDA be penalised heavily for its ongoing disregard for legal obligations.

K-RERA Chairman Rakesh Singh acknowledged that the claims of the site owners were valid and agreed that compensation should be awarded. He assured that a structured plan would be developed to resolve the matter fairly.

A key point during the hearing was the debate over the supervisory committee. While K-RERA officials initially claimed they lacked the authority to form such a body, the allottees' legal representatives argued that the RERA Act provided the necessary provisions. The chairman promised to review the matter before making a decision.

The hearing has been adjourned to next month, and K-RERA is expected to revisit both the compensation claims and the possibility of forming a supervisory panel.

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