BBMP's lease plan to ease funds crunch

BBMP's lease plan to ease funds crunch

The Palike has shops spread across the City in some of the most posh and centrally located business areas like Jayanagar, Malleswaram, Koramangala and the City Market. At present, the Palike is able to get nearly Rs 18 crore by leasing out its business establishments.

The revenue generated from the Palike’s business establishments is negligible given that they are situated in post locations. Thus, the BBMP has decided to revisit its policy in an attempt to earn more revenue.

Shops let out for invariably longer periods and for insignificant rent is the primary reason for low revenue, sources in the Palike said. “In certain cases, we are collecting a pittance of Rs 150 to Rs 200 as monthly rent for a business establishment. In the Malleswaram market, the Palike collects a mere Rs 200 for a shop. Such rents are unimaginable in the present times. The Palike has decided to work its way through and fix a rational lease amount and rent without burdening the shopkeepers,” said a BBMP official.

The BBMP authorities are working towards a new market policy, where its properties can be leased out against a non-refundable amount for a definite period of time, he added.

“It’s like renting or leasing out your property for a fixed period. The move will enable the Palike to collect revenue without the liability of refunding the amount,” the official said.

The decision comes in the wake of nearly Rs 22 crore of the Palike, pertaining to shops in the Public Utility Building and Jayanagar Shopping Complex, being stuck in the appeals section of the BBMP. Recently, the Palike had to face a litigation filed by shopkeepers in the two buildings.

The High Court, however, directed the civic body to resolve the matter amicably. The matter is now before the Standing Committee for Appeals.

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