BBMP redeems two of its mortgaged properties

BBMP redeems two of its mortgaged properties

BBMP redeems two of its mortgaged properties
The BBMP took possession of two of its mortgaged properties – Kempegowda Museum and Mayo Hall – by repaying a part of the principal amount of the loan lent by the Housing and Urban Development Corporation Limited (Hudco) on Saturday. Papers pertaining to the two properties were handed back to the Palike after it repaid Rs 435.94 crore to Hudco.

The BBMP had borrowed Rs 1,645.85 crore from Hudco at an interest rate of 10.50 per cent. A total of 11 properties had been mortgaged for the loan. With a part of the principal amount being paid, the remaining amount has been reduced to Rs 1,209.91 crore.

The Palike has also availed of a Rs 1,450-crore loan from Corporation Bank, Syndicate Bank and Canara Bank Hudco has said that without the Palike having to mortgage any of its properties, an amount of Rs 665 crore would be lent to it.