Seven BDA complexes to turn into shopping malls

Bengaluru: Seven BDA complexes will turn into shopping malls. The Bangalore Development Authority (BDA) is going ahead with a controversial deal that was initially finalised in 2018 but had remained in cold storage due to a change in government. 

The 60-year agreement will make the planning authority richer by Rs 40 crore annually. BDA Commissioner N Jayaram confirmed the development, saying the state government consented to the proposal in September last year.

“We have completed the remaining formalities to take the project forward,” he said. 

While six BDA complexes, including the ones situated in Koramangala, HSR Layout, RT Nagar and Sadashivnagar, are leased to Bengaluru-based M-FAR Developers, a consortium of Maverick Holdings and Embassy Group will redevelop the Indiranagar complex. 

However, the proposal, which facilitates commercial development, may run against the BDA’s primary charter of providing civic amenities. 

Officials said revenue generation was the primary motive behind commercially developing the BDA complexes where the rental income was currently low.

“We will earn 30% of the revenue from six complexes and 35% from the Indiranagar complex. In total, we are expecting about Rs 40 crore a year after the redevelopment project, completely funded by the private developers, takes off,” an official said. 

In return, the BDA will allow two to 21 times more built-up area in these seven complexes depending on the site area and width of the connecting road.

For instance: the Indiranagar complex will have two towers, one comprising 10 floors (for offices) and another five floors (shopping and entertainment complex). The Sadashivanagar Complex, which has just one floor at the moment, will be redeveloped with three floors. 

2018 tender

This is perhaps the first project in the BDA’s history approved six years after tendering was completed. The authority had almost finalised the developers in March 2018 but the kept the project on hold following public protests. 

Many citizen groups, including I Change Indiranagar, opposed the move, saying the BDA was looking at short-term benefits instead of the residents' long-term needs. They also drew light on the manifold increase in vehicular pollution, water demands etc once the project takes off. 

The proposal went back and forth between the BDA and the government whenever the chief ministers changed, sources said. 

The B S Yediyurappa-led government cancelled the 2018 tenders but the BDA did not communicate the same to the developers. While the proposal came up for discussion during Basavaraj Bommai’s period, it was revived with Siddaramaiah-led government — which had originally mooted the proposal — coming back to power last year. 

Sneha Nandihal of I Change Indiranagar said the proposal was not only against the residents' interests but also violated the BDA Act and rules.

“There is no dearth of commercial establishments in Indiranagar. The BDA complex is supposed to meet the community needs of residents by providing space for RTO offices, BengaluruOne centres etc. When did the BDA get into the real estate business? Can the existing infrastructure for water and roads take the additional load? What the BDA is doing is completely illegal.” she said.