Shares of four Bengaluru-based realty firms fell 3.20% to 5.08% at 11:29 IST on the BSE on reports the Karnataka government is considering a five-year ban on construction of apartments in Bengaluru due to drinking water shortage.
Meanwhile, the S&P BSE Sensex was down 88.42 points, or 0.22% to 39,497.99.
Puravankara (down 5.08%), Sobha (down 4.36%), Prestige Estate Projects (down 3.22%) and Brigade Enteprises (down 3.20%) declined.
According to reports, G Parameshwara, deputy chief minister of Karnataka, said that the government is planning to clamp a five-year ban on approvals for construction mainly because a large number of apartment buildings have been constructed in Bengaluru city and sold to people without ensuring adequate drinking water supply. This has resulted in the residents facing severe water crisis and they are depending on the tankers for water supply.
The government is reportedly looking at all options. If things improve after five years, the government could lift the ban.
Karnataka is reeling under a severe drought. The Bangalore Water Supply and Sewerage Board (BWSSB) is the main agency that manages drinking water - but it can provide it to only about 60% of the city, reports suggest.
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