HC strikes down collection of uniform betterment charge

The High Court on Wednesday struck down a BBMP circular that had fixed a uniform charge of Rs 550 per square metre towards improvement charges to be collected from site owners in the newly added BBMP areas.

Justice A S Bopanna, who allowed the petition in part, quashed the circular stating that it was not maintainable. But the  BBMP has been given the liberty to issue a fresh circular on the collection of betterment charges in these areas. The Judge directed the BBMP to issue a new circular after careful consideration and proper application of mind and also while keeping the betterment of citizens.

The BBMP, in its circular dated September 28, 2012, had fixed a uniform rate of Rs 550 per sq metre as betterment charges for the DC converted revenue sites in the newly added BBMP areas with immediate effect.

The betterment charge for a DC converted revenue site measuring 30’x40’ was increased by 273 per cent from the previous differential rate. For sites measuring 40’x60’, the charges were increased by 180 per cent. For a site bigger than 40’x60’, the charge translated to 86 per cent more than the earlier amount.

In 2010, the BBMP had reintroduced betterment charges with differential rates, a move that was stayed by the High Court. The previous rates were fixed at Rs 150 per sq mtr for 30’x40’ sites, Rs 200 per sq mtr for 40’x60’ sites and Rs 300 for sites bigger than 40’x60’.

The betterment charges were being collected from property owners who had benefited from the services of BBMP such as building, asphalting and widening of roads, construction of grade separators, laying storm water drains (SWD), underground drainage (UG) system and street lights.