In a bid to mobilise revenue to fund its developmental projects without ‘taxing’ citizens, BBMP has set eyes on its immovable properties, including buildings and open areas either owned or managed by it.
Anticipating a windfall either by selling or leasing the properties through public auction process, the civic body has proposed to link its properties’ rent with their guidance value along with a fixed term of lease.
Planning to roll out the new method of selling or leasing out its properties, BBMP Wednesday notified draft rules and sought public objections within 30 days, if any. The draft Bruhat Bengaluru Mahanagara Palike (Estate Management) Rules 2024 provides for maintenance of a detailed inventory of all its immovable projects under the estate wing.Tushar Giri Nath, chief commissioner of BBMP, told TOI the draft rules seek to streamline the process of management and leasing out of properties under the Palike’s control.
“While areas outside of BBMP (districts, taluks) strictly adhered to these rules, the management of properties within BBMP areas was not as disciplined. Hence, these estate rules are being added to the BBMP Act. This will not only give the civic body more authority but also empower it economically and make it self-reliant on revenues to a certain extent,” he explained.
Stating that currently many of these properties are given out to religious institutions, NGOs or educational institutions for nominal prices, Nath said, “As per the new rules, rental value of the properties will be linked to guidance value as determined by the govt. Further, any lessee must pay an amount 10 times that of the rental value as deposit.”
Currently, properties are leased based on approval of the BBMP council-elected standing committee. “While the chief commissioner can lease properties for 11 months, the council’s consent is needed for 15-year leases. For a lease period of anything more than 15 years but less than 30, BBMP must obtain prior approval from the govt.
According to the new proposal, the chief commissioner can lease property for 5 to 15 years with the council’s consent and no BBMP property can be leased beyond 30 years under any circumstances. Also, after expiry of the lease period, the property stands automatically vested back with BBMP free of all encumbrances,” explained an official from urban development department.Further, BBMP introduced a reservation of 7 per cent for STs and 17 per cent for SCs besides 2 per cent for those with more than 40 per cent disability. Officials said these rules will also put an end to litigation aspects.
The draft rules state a lessee can only get one extension and the property has to go back under the hammer again. If any lessee fails to pay monthly rent, the contract can be terminated or deposits can be forfeited. The rules also enable BBMP to sell its immovable properties to other departments of the state or central govts or public sector undertakings with prior sanction from the state authorities.
