In Another Jolt To Gurgaon-Based Realty Major In The South, BBMP Says Project Is Illegal
BANGALORE’S civic authority has come out with a public notice warning future buyers from buying apartments in DLF’s Bannerghatta Road project in a move that extends the Gurgaon-based realty player’s nightmarish run in the southern markets.

The Bruhat Bangalore Mahanagara Palike (BBMP) cautioned prospective buyers from purchasing apartments in the project in a strongly worded and unprecedented buyers beware’ public notice on Thursday. “Prospective buyers are advised against purchase of such illegal apartments as such apartments are liable for all lawful action that will be initiated against such illegalities including demolition,” it said.

DLF’s apartment complex — Westend Heights at New Town, BTM Extension — had claimed, in its ad seeking bookings, that it had got the Bangalore Development Authority approval to build up to four floors while the project comprises 18 floors. The BBMP public notice points out that BBMP was the only competent authority to approve building plans in its jurisdiction and that DLF had not obtained any approval or sanction from it. The company has already been at the receiving end of irate buyers for its Chennai project from where many have even exited. In recent months, DLF even reduced prices.

A senior BBMP official told ETthat DLF had not sought approvals from the agency. “The job of an agency like BDA is to create residential layouts. All accompanying activity like registration, approval of construction plan, issuance of khata, payment of taxes, issuance of occupancy certificate and the like will be done by BDA till the said layout is handed over to BBMP subsequent to which the layout would be under BBMP limits,” the official clarified. He said BTM extension was part of the BDA, but in 2007, the area was handed over to BBMP subsequent to which all the paper work had to be carried out after permission from BBMP. But the Delhi-based builder has apparently overlooked this, the official said.

In a press statement, DLF Southern Homes Karnataka says the project will commence only after obtaining detailed plan approval from BBMP and other relevant clearances, for which application is in process. DLF has obtained due approval for the developmental plan through its subsidiary Annabel Builders & Developers for S+4 level from BDA, it says. It has paid khata amount of Rs 14.6 crore to BBMP towards betterment charges on August, 2008. “The intention of obtaining Khata from BBMP is in itself an indication that DLF would seek approval for building plans from BBMP,” it says, in its clarification.

DLF executive director (southern region) J Subrahmaniam says, DLF has sought bookings from buyers after seeking legal opinion. “At all stages, we have kept the buyers informed about the project approval status,” he added. DLF’s immediate priority will be to reach out to the 500-odd buyers and appraise them of the situation. DLF claims that it has not seen any rush for cancellations or buyers seeking exit from the project.

Brokers and realtors that it is a normal practice for builders to market their projects before they get all the approvals. A public notice from the government has literally sent shudders down the spine of city realtors, who are possibly witnessing one of the worst times. “This incident will further depress buying sentiment. Getting approvals in any city is an arduous task. Even the best of projects can drag,” said one realtor, who did not wish to be identified.