Bhubaneswar Development Authority introduces new property regulations

Bhubaneswar Development Authority (BDA) has unveiled plans to overhaul its property management and allotment procedures, aiming to simplify the allocation process and better handle its diverse real estate portfolio. The proposed "BDA Property (Management and Allotment) Regulation, 2023" covers apartments, commercial properties, and affordable housing units, with the goal of enhancing transparency and effectiveness in allocation.

The draft rules, now open for public feedback, signify a significant step towards revamping property allotments in Bhubaneswar. Once the suggestions and objections phase concludes, the rules will be enacted upon their publication in the Odisha Gazette.

One of the pivotal changes outlined in the draft pertains to housing project allotments, offering two options: a lottery system or an auction. Nevertheless, the draft stipulates that individuals who already own property or plots within the city limits will be ineligible for allotment in BDA properties.

Participation in the allotment process necessitates online registration with the BDA. Following this, a universal account number will be assigned to the registrant, who must then submit a 10% earnest money deposit based on the property's value.

The draft regulation specifies that the 10% earnest deposit will be refundable if the BDA cancels the allotment, though no interest will be provided on the refunded amount. Conversely, if an allottee secures a property but fails to meet the payment deadline for the remaining balance, a provision is made for an extension. However, the pending amount must be settled with the BDA at an annual interest rate of 12%, with a 180-day repayment window.

The proposed changes have sparked debate among residents and real-estate experts. Some individuals find fault with the refund policy, deeming it unfair for participants who forfeit their earnest deposits due to non-allotment. Others highlight instances where the BDA cancelled schemes post-payment, resulting in delayed refunds and discontent among buyers.

Critics argue that the draft rule leans heavily in favour of the BDA, affording it substantial authority to cancel allotments and select allottees as it sees fit. Experts and stakeholders stress the need for a balanced regulation that safeguards the interests of potential buyers and the BDA alike.

Responding to concerns, G Mathivathanan, secretary of the housing and urban development department, clarified that the draft regulations remain open to revisions. He assured stakeholders that their feedback would be thoughtfully incorporated to refine the final regulations.

As the public consultation phase continues, stakeholders eagerly await the outcome, hoping for a finalized set of rules that prioritize fairness, transparency, and efficient management in property allocations overseen by the Bhubaneswar Development Authority.

Next (CBDT introduces new valuation guidelines for employer-provided housing)

Bhubaneswar Development Authority introduces new property regulations

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