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Karnataka to reclaim government-allotted plots if houses are not built within five years

#Law & Policy#Land#India#Karnataka
Synopsis

The Karnataka government has announced that residential plots allotted by state housing boards and development authorities will be reclaimed if allottees fail to construct houses within five years of taking possession. The decision aims to curb speculative land holding, ensure faster utilisation of residential land and make housing plots available to genuine homebuyers. Authorities will also monitor implementation through periodic reviews, with the policy expected to improve land use efficiency, accelerate housing development and discourage long-term vacancy across state-allotted residential layouts.

The Karnataka government has said it will reclaim residential plots allotted by government agencies and cooperative housing societies if beneficiaries do not construct houses within five years of allotment, in an effort to curb urban neglect and prevent vacant sites from turning into garbage dumping grounds. 
Announcing the decision during the launch of the 'Freedom from Waste' cleanliness campaign in Bengaluru, Deputy Chief Minister D K Shivakumar said the measure would apply to plots allotted by agencies such as the Bengaluru Development Authority (BDA), the former City Improvement Trust Board (CITB), municipal bodies and cooperative housing societies. The government will refund the amount paid by allottees, together with applicable interest, before resuming the sites. 
Shivakumar said beneficiaries receive plots to build homes rather than leave them vacant for decades. According to him, several government-allotted sites have remained undeveloped for 20, 30 or even 40 years, resulting in vacant parcels becoming dumping grounds for construction debris and municipal waste. 
He added that if construction is not undertaken within the stipulated five-year period, authorities may either impose double property tax or resume the plot. The government clarified that the policy applies only to plots allotted by public agencies and does not extend to privately owned land. 
Officials noted that the five-year construction requirement is already incorporated in the allotment conditions of agencies such as the BDA and Karnataka Housing Board. However, enforcement has traditionally been lenient, with authorities often granting extensions or imposing penalties based on individual circumstances. The government now intends to ensure stricter compliance with these conditions to improve land utilisation and urban cleanliness. 
Source - PTI

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