Guidance value along PRR cut; jolt to land-losers

Bengaluru: Just as the Bangalore Development Authority (BDA) was finalising a revised compensation policy for farmers whose land is notified for the peripheral ring road (PRR) project, the state government has given a jolt by axing the guidance value along the road by nearly half. The move -- besides setting off a land-buying spree on the city's outskirts -- will see a major cut in the monetary relief to land-losers.   

In the notifications issued earlier this month, the Stamps and Registration department reduced the guidance value of properties along and abutting the 73-km PRR, which is spread across the eastern, southern and northern parts of Bengaluru’s periphery.

The notification has selectively withdrawn the upward revision of guidance value announced across the state just five months ago. In effect, the 2,560 acres -- notified for the acquisition of PRR, also called as Bengaluru Business Corridor -- will see a drop in its value.  

For instance, the guidance value of Jarakabande Kaval (survey number 60 to 76 and 100) has been reduced by more than 50% to Rs 14,000 per sq m from Rs 31,050 sq m for properties with statutory approvals. If it is agricultural land, the revised guidance value is Rs 1.59 crore per acre as against Rs 1.83 crore according to the earlier notification. 

Overall, the downward revision of guidance value has been notified for more than 75 villages, including ones that are undergoing massive growth. Some of these places include Kadugodi, Varthur, Gunjur, Ramagondanahalli, Harohalli, Aduru, Rampura and Hebbagodi.

With the latest land acquisition rules prescribing compensation of up to four times the guidance value (in the peripheral areas), the owners could lose as much as Rs 1 crore for parting with an acre of agricultural land. 

The department is said to have notified the downward revision of guidance value on the request of Bangalore Development Authority (BDA), which has invited bids for building the 73-km road. According to the bid document, the private company is expected to fund both the land acquisition and construction cost, both pegged at Rs 27,000 crore. The reduction in guidance value is sure to help the bidder. 

A senior official told DH that the guidance value of land along the PRR was revised in September 2023 presuming the PRR was already built. “As the land was abutting the PRR, the guidance value was increased by 50%. We have now retained the old rates as the project is yet to take off,” the official said. 

Buying spree

While the downward revision will sting the land losers, the changes, especially of properties abutting the road alignment is sure to help the money bags to go on a land buying spree. Reason: the boom in land prices as well as the reduced guidance value.     

Sources privy to the development said the government is going to lose the revenue from stamp duties and the farmers will not get adequate compensation following the reduction of guidance value. “This is discriminatory and against the interest of farmers who are set to lose their land,”  another official said.