The Hindu 09.11.2013
BDA circumvents guidance value through auctions
Despite opposition from social activists as well as some
members of the ruling party to the practice, the Bangalore Development
Authority (BDA) has once again advertised the auction of intermediate
housing plots across the city.
BDA acquires land from
farmers for distribution among the public at subsidised rates. Hence,
the legality of auctioning plots by the State-run body has been a matter
of debate for some time. But the latest announcement on Thursday has
been a source of consternation because of the price at which the
government agency wants to dispose the plots. The base price of the
plots has been fixed between Rs. 6,500 and Rs. 8,500 per square feet.
“It
is more than the guidance value fixed by the government,” RTI activist
B.M. Shivakumar told mediapersons on Friday. Citing an example, he said
that the base price of 12 plots in HSR Layout Sector Seven has been
fixed at nearly Rs. 8,500 per square feet. “Post-bidding, the final sale
price can go up to Rs. 10,000 per square feet,” Mr. Shivakumar said.
However, the guidance value fixed by the government is Rs. 4,000 per square feet.
Senior
Congress leader B.L. Shankar, who has been campaigning against such
auctions, said, “These lands were acquired from farmers for a public
purpose. The function of BDA is to allot plots to people at subsidised
rates. How can they auction them in the open market? If they do, what is
the difference between the BDA and a real estate agency?”
Mr.
Shivakumar said such auctions are illegal. Quoting from an April 24,
2009 order of a High Court division bench, he said, “…intermediary sites
are required to be offered for allotment to eligible persons as per
Rule-3. These intermediary sites cannot be disposed by public auction.”
When confronted with this ruling, the BDA had issued a rejoinder stating
that auction of intermediary plots was legitimised by a government
order passed on July 27, 2011.
“But,” Mr. Shivakumar
said, “The GO was never placed before the State cabinet for approval. It
was issued by the Principal Secretary of the Urban Development
Department.”
