Bengaluru: Struggling to refund the initial deposit of Rs 543 crore paid by 26,370 applicants, who were not allotted sites at the Nadaprabhu Kempegowda Layout, the Bangalore Development Authority (BDA) has been forced to borrow Rs 573.23 crore from various banks, said city RTI activist, Sai Datta.
The agency has no choice as it has spent all the Rs 717 crore collected as initial deposit from 31,000 applicants on various developmental projects and does not have any money left to refund those who were not allotted sites, he explains.
"The BDA borrowed Rs 573.23 crore from several banks by mortgaging 425 sites , including 150 corner sites in various locations in the city to return the Rs 543 crore it owed disappointed applicants," said the activist, who applied for information on the money borrowed by the BDA since 2016 under the RTI Act.
While the agency is hoping to settle its bank loans from the Rs 1,408 crore it plans to collect from 5,000 site allottees, this is not expected to happen anytime soon as the allottees have sought at least six months to settle their dues, he reveals.
"Also, after demonetisation of the Rs 500 and Rs 1,000 notes, people are unwilling to cough up huge amounts of money as they are aware that hefty bank transactions are being monitored. Some, who have been allotted big sites like a 50x80 one, that costs over Rs 1 crore, have started giving up their allotments and demanding a refund" Mr Sai added.
The agency is in a bind, according to him, as there is lukewarm response to its 3,512 flats in areas like Doddabanahalli, Malagala, and Kanimanike. "So where will the BDA generate revenue from to repay banks and refund the deposits of those who have not been allotted sites? There is little possibility of the agency acquiring more land to develop layouts given its poor financial health," he explained, suggesting that the authority should stop building flats as there was hardly any demand for them anymore.
Former Minister, Suresh Kumar stressed that the BDA is obliged to settle the money it owes all disappointed site applicants at the earliest. "When it doesn't lose time in slapping fines on the allottees who fail to settle the money due to it within the deadline given, it should also ensure that it returns the money of disappointed applicants with interest if the delay is too long," he insisted.
A senior BDA official, when contacted, assured that the process of refuding deposits had begun and all those who hadn't received their money back, would receive it soon. BDA Commissioner, Rajkumar Khatri was not available for comment.
Rs 573.23 crore borrowed
State Bank of Mysore, M G Road branch: Rs 74.73 crore
Corporation Bank, K P West branch: Rs 74.73 crore
Canara Bank, BDA complex branch: Rs 250 crore
HUDCO: Rs 200 crore
What was mortgaged for the loans
425 sites, including 150 corner sites at Ramasandra, Ullalu, Gidakonenahalli and Herohalli in Sir M Visveshwaraiah Layout
