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        From Founder's Desk
        18 August 2026
      
    
  

  
  
    Plot Loans · Land Financing
    

# BDA plot investment just got a small speed ticket

  

  
    ![Mangesh Zope](../../assets/founder.jpeg)
    
      

Mangesh Zope

      

Founder, Peaceful Loans · IIM Calcutta Alumnus

    
  

  
  

I was talking to one of our clients today who owns three BDA plots, all bought about a decade ago, and he hasn’t even put a brick on even one of them.

When I asked him why, he just laughed and said, “Why should I construct? Plot ki value already double ho gayi hai.”

That one sentence captures a lot of what has gone wrong with the way BDA plots have been used so far.

BDA’s residential plot scheme, under the BDA Act, 1976, had a pretty simple purpose: to help LIG and MIG buyers own a home they couldn’t otherwise afford in the open market.

It wasn’t meant to help rich people like my client build a land portfolio or become an investment vehicle. It was meant to help a middle-class professional build their dream house.

The ground reality:

- Already owns a house? Still buys a BDA plot because the opportunity to get land at a lower price is too good to pass up.

- Doesn’t actually need to build? No problem. The plot just sits there for years, sometimes even a decade or more.

- The land keeps appreciating. Meanwhile, the owner doesn’t have to do much. Just hold on to the plot and watch its market value increase.

- Time to build? Suddenly, there’s always a reason to wait: no roads, bad infrastructure, flooding, family plans, or simply “I’ll build next year.”

The numbers make this even harder to ignore: around 68,000 BDA sites across 64 layouts are vacant, with more than 20,000 stuck in litigation.

At that scale, you have to ask: is this still a housing scheme, or has it become a low-cost land bank for people who never actually needed the land?

So BDA introduced the five-year rule 2 weeks ago, with penalties ranging from 2.5% to 10% depending on the plot size if the site isn’t developed. And the outrage amongst richies like my client started almost immediately.

But a huge chunk of this "outrage" is coming from people who bought a plot as a side investment and are annoyed the loophole is closing in on their future profits.

I've seen this pattern in home loans too. People don't ask, "What does this money actually need to do for me?"

They ask, "How do I extract the most value out of this scheme/product without doing what it was designed for?"

If your first thought after getting a residential plot is, “How do I hold this for 10 years to double the value?”, maybe you should also be fine with losing 10-20% of the profits to the government, which is finally asking for a piece of your profit pie.

Understand why something exists first before you find fifty ways to profit from it. If you didn’t, don’t cry when someone finally unearths your intentions & prepare to pay a fee.

### Sources & References

- LinkedIn Reference: [Mangesh Zope on LinkedIn](https://www.linkedin.com/posts/mangeshzope_i-was-talking-to-one-of-our-clients-today-share-7495063360074477570-XVvU/?utm_source=social_share_send&utm_medium=member_desktop_web&rcm=ACoAAANymyIBkTsSp_JgAU9V8NlfP5ctyZqJgSs)

- Reddit Reference: [Discussion on Reddit](https://www.reddit.com/r/INDIA_Peaceful_Loans/s/GohcmuqrS1)

- Twitter Reference: [@HomeLoanNerd on Twitter](https://x.com/HomeLoanNerd/status/2089530059942236290?s=20)

  

  
  
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