CAG: BDA overlooked change of land-use plan by developer

The CAG statement comes in the backdrop of BDA’s lapses in sanctioning building plans for Prestige Augusta Golf Village project in Vaderahalli village, east Bengaluru, which involves development of 460 luxury villas and twin houses spread over 104 acres designed around a nine-hole golf course. In its second instalment on the general and social sectors, the CAG report said the project, initiated in 2013, is facing demolition owing to the BDA’s failure to consider the general power of attorney (GPA) before sanctioning the detailed building plan that resulted in deviation from the approved development plan.
The Comptroller and Auditor General (CAG) has slammed the Bangalore Development Authority for its failure to monitor compliance with building bylaws, especially involving large projects, and said it has resulted in the exploitation of unwary buyers. The audit report placed in the assembly on Monday said the BDA must continuously ensure bylaws are followed. “Failure to do so may result in severe losses to the buyers since BDA may subsequently deny occupancy certificates or demolish the building as those would be illegal structures,” it added.

According to the report, the BDA, in December 2016, issued notice to Prestige Developers seeking reasons for contravening the scope of the development plan approved by the authority. Since the reply was unsatisfactory, it directed the builder to stop work and remove the structure constructed while recallig the sanctioned plan. By then, the developer had developed, ad vertised and sold some residential units in the agricultural land zone to prospective owners violating the norms stipulated in the zoning regulations of the Revised Master Plan 2015 for Bengaluru. As per the regulations, if the land is more than 40 hectares, golf course along with ancillary units like administrative office, guest rooms guest houses and dining facilities may be permitted for housing the staff of government, semi-government, public and private limited for short duration.

The back story

In 2012, owners of Survey Nos 27 to 42 and 56 of Vaderahalli village applied for conversion of land use from agricultural to nonagricultural for the development of golf course and ancillary units. The then deputy commissioner, Bengaluru Rural district, gave the approval on the condition that the land would be used for the intended purpose and construction would be undertaken after obtaining approval from zonal development authorities.

The owners applied to the BDA for sanction of non-residential development plan and it was approved on January 21, 2013 for a golf course and ancillary units. The report said that BDA issued the work order on June 28, 2013 after the land owner entered into a development agreement with Prestige Developers to develop the property and for its sale after executing a GPA in favour of the developer , empowering him to sell, lease, mortgage, exchange or otherwise 67% divided and or undivided share in the land.

“The GPA was submitted along with other docu ments to BDA prior to seeking sanction for the detailed building plan. Despite possessing the GPA, which altered the scope of the development plan sanctioned, BDA sanctioned the detailed building plan for construction of golf course with 460 guest houses on remittance of prescribed fees and charges,” the report said.




The Income Tax Department is scrutinising the Books of Accounts and the bill books maintained by the Petrol Pump Stations across India, which had deposited more old currency during the demonitisation.

The Income Tax Department has also found out abnormal discrepancy in 16,70,000 accounts with huge deposits and are under scrutiny.


Real Estate Duping alleged. Police arrest 15 persons in this connection.

The managing director, of real estate company Dreamz Infra Limited have been arrested after the company failed to hand over the promised flats on time to customers who had invested in their project.  The deputy commissioner of police (south-east), Dr Boralingaiah, said they have arrested the three main people associated with the company.

“We have made around 10-15 arrests in this case as multiple cases have been registered against various stake holder of Dreamz Infra Ltd. The three main people associated with the company Sachin Naik, Mandeep Kaur and Disha Chudhury have also been arrested. Sachin Naik who headed the company has been arrested for second time on Monday as cases were mounting against him,” he said.

It is said that the CM has taken a serious view and have directed the COD to investigate the matter.  There are around 300 cases filed with the chief metropolitan magistrate court regarding the firm.

There are other two companies which had also been involved in similar type of fraud.

Many investors lured by the CHEAP PRICES fell for CHEAP TACTICS.  Most of them invested it in cash and many may not be able to prove the source of their money.

This is a boon for the scam tainted builders.

There are few builders, who have booked flats in 2009 and still under construction, but the buyers are still negotiating and discussing it on the internet.  Few noted builders are citing cases in the high court for the delay.


Everyone wondered and speculated that the demonetisation has its severe adverse effect on the real estate industry in bangalore, but surprise, alas, this PARADOX has taken everyone by surprise.

The real estate market for ready apartments has more takers and are in better positioned, the prices have surely stabilised and the demonetisation and remonetisation has little effect or impact, but the budget apartments are in demand.

The registration of properties has slightly picked up but another surprise is that the price and the sale consideration and the registration value have reached ONE SINGLE UNIT, it means that there is very little cash or black money transactions.

The tax evasion is also being investigated by the State Government, which involves the seller, buyer and the banks. Stamp Duty evasion is a major concern and alarming.  Many buyers and the sellers have to shell down or will be penalised at 10 times ( the stamp duty amount evaded).


The worst ever monsoon failure and a severe drought has affected the water supply and the depletion of underground water table in and around bangalore will have serious potable water shortage and the civic bodies might not be able to supply the requisite quantity and have begun the rationing system.

The only source of water supply for the apartment complex is to buy from tankers and the prices have skyrocketed this year from Rs.300/- a tanker to Rs.1,500/-.

Some apartment complexes, which have swimming pools might be compelled to remain dry this season.

It is also said that this summer will be very harsh and the supply of water from cauvery river is just a trickle, will make things much worse.  The Government is planning to pump the dead storage across the reservoirs to meet the scarcity.