Palike wakes up to real estate reality

BBMP realises its properties have been leased out at rates that prevailed in another age

The move is expected to shore up the coffers of the fund-starved BBMP.

Henceforth, properties, whose lease periods have expired, will be leased out again, but only at market rates.

Astonishingly, some of the properties have been given on lease at rates that prevailed decades ago, and it is only now that the civic body has realised that its buildings have been given out at dirt cheap rates.

According to the members of the Taxation and Finance Standing Committee of the BBMP, the new rates will come into effect when the properties, whose lease periods have expired, will come under BBMP’s control in the near future.

While lease rates for commercial activities will be on par with market rates, land given on lease for religious and educational purposes will come at a discounted rate. “We are currently issuing notices to all those associations and institutions occupying our properties, whose lease has expired,” said Chairman of the Committee, P N Sadashiva.

Occupants of some of the BBMP properties have taken them on lease for 50 to 60 years at rates ranging from Rs 10 to Rs 70 per year. For example, in Ulsoor, the Madras Engineering Group has taken BBMP land measuring 42,372 square feet at a rate of Rs 70 per year for a period of 70 years. Sarvodaya Educational Trust in West Zone has got 34,628 square feet of land at Rs 24 per year.

It is stated that the lease period of nearly 50 percent of the BBMP properties, including the two mentioned above, have expired. In all, the Palike currently owns 372 properties in the three core zones of its jurisdiction. It has been decided to take back all properties whose lease periods have expired. BBMP has served notices to occupants of nearly 60 properties. Only a few leased properties were taken back under control, over the last six months. A special committee for the recovery of BBMP properties was formed, three months ago. Only three properties have been recovered after the committee came into existence. The panel was dissolved, after the 12 Standing Committees were formed.

BBMP says that it has no count of the number of its properties in the other five zones, which were added to its jurisdiction, after Bangalore Mahanagara Palike  became BBMP in 2007.

“There has been a series of correspondences between the BBMP, Revenue Department and the BDA to hand over the government land in the five new zones, namely, Mahadevapura, Yelahanka, RR Nagar, Bommanahalli and Dasarahalli. We are awaiting a response from the government on the issue,” said another member of the Taxation and Finance Standing Committee.

Land locked

Zone    properties    PeL*    Recovered
East     161                63        nil
West    122               69         3
South   89                 69         nil
PEL* Properties with expired lease