Amendments have made BDA a real estate agent: HC

Amendments have made BDA a real estate agent: HC

The Hindu

BANGALORE: The Karnataka High Court has said that the Bangalore Development Authority (BDA) has become a real estate agent after the amendment to the BDA Act pertaining to the lease-cum-sale agreement while allotting a site.

On Friday, Justice V. Gopala Gowda quashed the notification relating to the Arkavarthy Layout and said the amendment had led to increased demand for BDA sites in Bangalore.

He said that in the BDA (Allotment of Sites) Rules 1984, Rule 13 related to conditions of allotment and sale of sites. He said sub-section 2 of the Act provided for execution of a lease-cum-sale agreement.

He was answering a question he had asked himself on whether the object of the original BDA Act was defeated after its amendment and whether the BDA has become a real estate agent.

The first condition in the agreement stipulated that an allottee should be a tenant of the site for 10 years.

The fifth condition imposed restrictions on sale during the tenancy period.

These provisions were amended in 2000 and the word "lease-cum-sale agreement" was substituted with the word "sale deed" and an allottee was allowed to get an absolute sale deed after paying fully the value of the site.

Besides, Section 38 of the Act stipulated that the BDA had the power to sell, lease or transfer its properties subject to certain restrictions and limitations.

Mr. Justice Gowda said Section 38 had become redundant when the BDA amended the rules. He said this is not permissible under the law and the rules could not have overriding effect.

He said the amendment had helped the allottees to sell their sites and apply afresh for other sites. This had resulted in increasing demand for BDA sites.

He said the object of the original Act was to allot sites to the site-less, but the amendment had defeated this purpose.