in

Rs 650-crore cost stalls infrastructure work in Nadaprabhu Kempegowda, Real Estate News, ET RealEstate

Rs 650-crore cost stalls infrastructure work in Nadaprabhu Kempegowda, Real Estate News, ET RealEstate
File photo

BENGALURU: The increase in variation cost to the tune of Rs 650 crore has stalled the infrastructure works of Nadaprabhu Kempegowda layout for the past couple of months. It’s learnt that construction companies have abandoned the work after the Bangalore Development Authority (BDA) started dragging its feet over the approval of additional grants.

The BDA had engaged two companies – L&T Limited and SMPL Infra Ltd/Amrutha Constructions – for providing basic amenities in the 2,600-acre layout at a total cost of Rs 1,800 crore. The layout comprises 23,000 sites with various dimensions. So far, the contractors have been able to complete only 41 per cent of the total work.

“The month-on-month progress has dropped to 1 per cent from the earlier 5 per cent monthly progress. We do not see any men or machinery in the layout and the work has come to a halt on major parts of the layout. This is in spite of RERA ordering the BDA to complete infrastructure work by December this year,” Surya Kiran, one of the site alottees, said.

Officials blamed the contractors for discontinuing the work. “Some of the works were not factored in to reduce the project cost. The number of manholes and the total length of the underground utility duct were among the works whose quantity was brought down. We directed the contractors to take up the tendered works but they have abandoned the work,” a senior BDA official said.

The monthly progress has dropped to 1 % from the earlier 5%. This is in spite of RERA ordering the BDA to complete the work by December– Surya Kiran, site allottee

Among the works that were not factored in included construction of substation. The BDA decided to take up substation work for the electricity work only recently. The work is expected to further delay the layout being put to use as the project needs another 18 months for its construction.

It’s learnt that the variation cost was tabled before the BDA’s Board meeting in December last year. The authority is yet to give an administrative approval for taking up the additional works.

The delay is expected to further irk the allottees who have been waiting to construct a house in the layout for the last four years. Some blamed BDA’s mismanagement in forming the layout without creating an escrow account. The authority, it’s learnt, used the money received from the allottees for other projects in violation of RERA orders. Some estimate that the BDA alone may have collected as much as 26,853 crore from the 23,000 alottees.


What do you think?

Presented by Realty Beat

Comments

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Loading…

0
Prime minister hands over keys to 75,000 PMAY beneficiaries in Uttar Pradesh, Real Estate News, ET RealEstate

Prime minister hands over keys to 75,000 PMAY beneficiaries in Uttar Pradesh, Real Estate News, ET RealEstate

Inspira Builders buys over two acres land in Bengaluru, Real Estate News, ET RealEstate

Inspira Builders buys over two acres land in Bengaluru, Real Estate News, ET RealEstate