Bengaluru’s 5-Year Construction Rule May Hit 68,000 Vacant BDA Plots With New Fines

Last Updated:February 04, 2026, 18:23 IST

The BDA had earlier planned to revise penalties by 10%, in line with guideline rates but due to low compliance, officials are now considering a slab-based penalty system

Authorities state that vacant plots often create inconvenience for neighbouring residents and affect planned urban development (Image: Canva)

If you own a BDA plot in Bengaluru and have been holding on to it without building a house, you may soon have to rethink your plans. The Bangalore Development Authority is considering revising penalty charges for vacant residential sites, a move that could impact tens of thousands of plot owners across the city. With more than 68,000 sites lying unused in multiple BDA layouts, authorities are now weighing stricter slab-based fines aimed at discouraging long-term land banking and encouraging timely construction.

Until now, site owners were required to pay a penalty if they failed to construct a house within the permitted timeframe. However, many allottees have reportedly not paid the existing fines. In response to public demands, BDA officials are discussing a revised penalty structure that could make payments more manageable.

What is The Proposed Revised Penalty Structure?

As per existing rules, beneficiaries must construct a house within five years of allotment. The BDA had earlier planned to revise penalties by 10%, in line with guideline rates, from September 2024. However, due to low compliance, officials are now considering a slab-based penalty system.

Under the proposed revision, penalties may be imposed as follows:

• 2.5% for smaller plots
• 5% for plots measuring 30×40 feet
• 7.5% for plots measuring 40×60 feet
• 10% for plots measuring 50×80 feet and above

The proposal is still under discussion and is yet to receive final approval.

The BDA acquires land from farmers by paying compensation and develops layouts before allotting plots at concessional rates. However, officials have observed that several allottees purchase plots for investment purposes and delay or avoid construction for many years.

Authorities state that vacant plots often create inconvenience for neighbouring residents and affect planned urban development. The penalty system is intended to discourage long-term vacancy and encourage construction within the stipulated timeframe.

What Are The Rules Regarding Plot Cancellation?

Earlier, BDA required house construction within two years, which was later extended to three years and then to five years. As per current regulations, if construction is not completed within the allowed period, 12.5 per cent of the site value may be deducted, and the remaining amount refunded before the plot is withdrawn.

However, officials have observed cases where allottees have not built houses even after holding plots for two to three decades. Many such owners approach BDA for sale deeds later to obtain e-accounts, which reveals that construction has not taken place. In such cases, penalty charges are collected while issuing the sale deed.

The BDA retains administrative control over newly developed layouts for up to ten years after allotment. During this period, some site owners construct houses, while others leave the land vacant and apply for sale deeds later. There have also been instances where plots remain vacant for up to 20 years before owners attempt to sell them.

To address such situations, BDA introduced penalties for delayed construction and is now considering revising these charges according to guideline rates.

List of Locations With High Number Of Vacant Plots

Officials said that most older BDA layouts in Bengaluru continue to have vacant sites. Except for recently developed Nadaprabhu Kempegowda Layout and Arkavathi Layout, several established neighbourhoods still report unutilised plots.

Vacant sites have been identified in areas including Jayanagar, BTM Layout, Banashankari, Anjanapura, HAL Layout, HBR Layout, JP Nagar, Nagarbhavi, Koramangala, HSR Layout and Indiranagar.

According to BDA data, more than 68,000 plots remain vacant across 64 layouts in Bengaluru. Among these, over 20,000 sites are currently involved in various disputes.

BDA Commissioner Manivannan confirmed that the revision of penalties for vacant plots was discussed during a recent management meeting. He stated that the matter will be reviewed in further detail in the upcoming meeting, after which a final decision is expected.

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