Many landowners who purchased sites in Nadaprabhu Kempegowda Layout for residential purposes are facing difficulties due to the Bengaluru Development Authority's (BDA) delay in collecting betterment charges. This delay has left them unable to either sell their properties or begin construction on their dream homes.

The landowners explained that paying the betterment charges would enable residents and investors to obtain "A" khata, which is necessary to upgrade their property from the current "gramathana" or revenue site status. Since revenue sites are deemed illegal, owners face several restrictions and legal challenges.

They also mentioned that selling the land has become problematic because buyers are unable to secure loans from nationalized banks without a khata. While private banks do offer loans, they charge high interest rates, ranging from 14% to 18%. This situation has given rise to a land mafia that takes advantage of the situation by pressuring people to sell their land at reduced prices, as buyers are hesitant to invest in such properties.

This issue has led to a significant decline in real estate prices in the area. Landowners in Seegehalli, Kannalli, Kodigehalli, Manganahalli, Kommaghatta, Bheemanakuppe, Ramasagara, Sulikere, Kenchanapura, Ramasandra, K. Krishnasagar, and Challaghatta would greatly benefit if the BDA were to collect the betterment charges.

One of the site owners, Prashant, shared that he had purchased a site in a private layout but was unable to secure a housing loan from a nationalized bank. He expressed uncertainty about whether the BDA would issue a notice regarding the layout acquisition. He stated that if the BDA collected the betterment charges and provided him with an "A" khata, it would simplify obtaining a housing loan or selling his site.

The landowners further explained that they were unable to get building plan approvals since such permits are not granted to sites without a khata, making any construction illegal. As a result, they are unable to access basic amenities such as water and electricity. Additionally, businesses, industries, and schools in the area have been unable to obtain trade licenses or raise loans for the same reason.

The BDA Board has approved the collection of betterment taxes in both the Arkavathy and Nadaprabhu Kempegowda layouts, with the state government already passing a gazette in 2018-19 to enable this collection.