The decision was taken on Tuesday during a meeting chaired by Major Works Standing Committee Chairman H Ravindra.
The meeting was attended by the local corporator, BBMP engineers of major works, and other senior Palike officials.
Land acquisition was a major hindrance to the completion of the project. The BBMP had initially agreed to pay Rs 1,500 per sq ft but the residents were demanding not less than Rs 3,000 a sq ft.
Later, the BBMP agreed to increase the compensation amount to Rs 1,960 per sq ft but that too could not satisfy the property losers. On Tuesday, the Palike increased the compensation amount to Rs 2,550 per sq ft.
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