The Bengaluru Development Authority (BDA) has re-commenced auctioning its corner sites in various layouts. This comes two months after the Karnataka State Chief Minister B.S. Yediyurappa announced that around 12,000 BDA sites will be auctioned in a phased manner.
Since 2011-12, the BDA has been aggressively offering the plots for sale through e-auction. These are residential / commercial sites in well developed localities of Bangalore.
Bidding / e-auctioning is a hassle-free way to own a property, especially if want to avoid any sort of black money in real estate transactions.
Difference between BDA Allotment and Auction:
BDA has so far formed about 62 layouts in Bangalore. Bangalore BDA maintains a seniority list of applicants who has applied for sites in BDA layouts. After forming a layout, BDA generally allots the plots based on certain criteria and lottery system. The e-auction process is different to this. Any citizen of India can apply for auction. There is no lottery system. The highest price bidder of a particular plot will win the auction.
Latest BDA Plots E-auction 2020 Notification
BDA has issued the latest e-auction notification for around 200 corner sites in the first phase.
The E-auctions for sites at HSR Layout, Sir M. Visvesvaraya Layout, Banashankari, NGEF, J.P. Nagar and Rajajinagar commences from June 20, 2020.
The last date to express interest of participation is 06-july-2020 and the last date for closing e-Auction is 7th July, 2020.
The cost of a site ranges from Rs 39,000 per square metre to Rs 1.60 lakh per sq metre depending on the location. The maximum number of sites is available at M. Visvesvaraya Layout and Banashankari.
You may kindly click on the below image to download the complete and latest BDA e-auction notification (June-July 2020).
BDA Sites Online Auction Terms & Conditions
- Applicant should be a Citizen of India
- NRIs & Partnership firms also can participate in the auction
- Applicant has to pay Rs 4 Lakh per site as Earnest Money Deposit (Deposit amount is refundable).
- Successful bidder has to remit 25% of auction amount in 3 days.
You may download complete details on Auction Terms & Conditions from this link.
Advantages of buying a BDA Plot/site through auction:
- The bidding process is completely online (it is like stock market trading).
- The process is transparent. You can view the bid prices quoted by the other bidders on the screen.
- Most of the properties offered are corner plots.
- BDA layouts are comparatively well developed with good infrastructure.
- BDA Layouts have drinking water supply facility.
- You can easily fund the property deal through home loan.
- You are the first owner of the property.
- No issue of black money. The entire property deal amount should be paid through Demand Drafts (DDs) or money transfers.
- No Agent or mediator involved in the process. The entire decision making process is in your hands.
- Anyone in India (citizen of India) can invest in these properties.
- Different plot measurements are available ( from 400 square feet to 4000 sq ft and above).
- You may win the auction at less than the current prevailing market price (but this happens very rarely as BDA can cancel the bid, if its required).
- Auction notification has location and site map details. Hence it is easy to locate the property.
- In case, you wish to re-sell the property, you can do it immediately after the Registration of the vacant plot.
BDA e-Auction Procedure
Below is the step by step procedure to participate in BDA E Auctions;
- Visit this link ( BDA’s e-auction website)
- Click on User icon.
- Click on “New user : Register”
- Fill your personal and bank details
- Pay Auction Processing Fees & Earnest Money Deposit of Rs4 Lakh (per site) online.
- If you do not win the auction then Rs 4 Lakh will be refunded to your bank account.
- Upload your Auction documents online.
- Agree to auction terms & conditions and submit your interest of participation.
- There will be Delta time of 5 minutes on the final day. The auction can go on till the time there is no new bid quoted before the end of the delta time (as shown below).
- The successful bidder has to remit 25% of auction amount to BDA in 72 hours.
- Generally BDA will give you around 45 to 60 days to remit the remaining 75% amount.
BDA E Auction – The entire process & Important Stages
The entire process from bidding to Registration generally gets over in 2 to 4 months. The below process flow gives you clear idea about this;
BDA E-Auction – Should you participate? | My opinion
For the last 9 years, I have been keenly tracking the e-auctions conducted by the BDA. To my knowledge, most of the auctions have been successful with high levels of participation from property investors.
Some bidders have won at the base price itself and some have won at crazy prices. Personally, I have participated in the e-auction in 2012 and won the bid.
Considering the current economic scenario and prevailing pandemic (Covid-19), it is to be seen if same level of participation happens or not.
If you are keenly looking for a property (vacant plot) for self-occupation and planning to settle down in Bengaluru then you may surely consider participating in these auctions. But, do not over-leverage your self by taking high home loan amount (if any). Also, advisable not to cross your budget limit during the bidding process.
In case, you are looking for a commercial site or for investment purposes, do not expect fantastic / abnormal returns (capital appreciation / rental yields).
As you are buying the auction property through WHITE money, you may get a compliance notice from the Income Tax Department for the respective Assessment Year. So, make sure you keep all the information related to your payments, for future reference.
Are you planning to buy a property in Bangalore? Do you want more information on e-auction process? Then, kindly leave your comments below and I will be more than happy to reply to your comments. Cheers!
Continue reading:
- Checklist of Important Property Documents in India | Legal Checklist for Property Purchase
- Khatha Registration & Khatha Transfer Procedure in Bangalore
- 5 ways of transferring your Real Estate Property!
- How to save Capital Gains Tax on Sale of Land / House Property?
(Post first published on : 20-June-2020)
