+
BBMP Plans to Monetize Properties to Fund Development
Real Estate

BBMP Plans to Monetize Properties to Fund Development

In a strategic move to mobilize revenue for its developmental initiatives without imposing additional taxes on citizens, the Bruhat Bengaluru Mahanagara Palike (BBMP) has set its sights on utilizing its vast portfolio of immovable properties. The civic body plans to either sell or lease these properties through a public auction process, linking the rental value to their government-assessed guidance value.

BBMP issued a notification for the draft Bruhat Bengaluru Mahanagara Palike (Estate Management) Rules 2024, inviting public objections within the next 30 days. These rules are designed to streamline the management and leasing process of BBMP properties, with an inventory being maintained under the estate wing for transparency and accountability.

Tushar Giri Nath, Chief Commissioner of BBMP, emphasized that the new rules will empower the civic body economically, making it more self-reliant while ensuring greater discipline in property management. Currently, BBMP properties are often leased to religious institutions, NGOs, and educational organizations at nominal rates. The new rules, however, propose a rental value based on the government’s guidance value, along with a deposit requirement of ten times the rental amount.

The revised procedure grants the Chief Commissioner the authority to lease properties for periods ranging from 5 to 15 years with council approval. Leases exceeding 15 years but less than 30 years will require prior government approval. Furthermore, no property can be leased for more than 30 years under any circumstances. After the lease expires, the property will automatically revert to BBMP without encumbrances.

Additional provisions in the draft rules include a 7% reservation for Scheduled Tribes (STs), 17% for Scheduled Castes (SCs), and 2% for individuals with over 40% disability. The updated process aims to reduce litigation and provide a more efficient framework for property management.

Finally, the BBMP can sell its properties to state or central government departments or public sector undertakings with the prior approval of state authorities. The proposed changes are expected to enhance BBMP's revenue base while ensuring equitable access to properties for various sectors.

The notification of these draft rules marks a significant shift in the approach to urban governance and property management in Bengaluru.

In a strategic move to mobilize revenue for its developmental initiatives without imposing additional taxes on citizens, the Bruhat Bengaluru Mahanagara Palike (BBMP) has set its sights on utilizing its vast portfolio of immovable properties. The civic body plans to either sell or lease these properties through a public auction process, linking the rental value to their government-assessed guidance value. BBMP issued a notification for the draft Bruhat Bengaluru Mahanagara Palike (Estate Management) Rules 2024, inviting public objections within the next 30 days. These rules are designed to streamline the management and leasing process of BBMP properties, with an inventory being maintained under the estate wing for transparency and accountability. Tushar Giri Nath, Chief Commissioner of BBMP, emphasized that the new rules will empower the civic body economically, making it more self-reliant while ensuring greater discipline in property management. Currently, BBMP properties are often leased to religious institutions, NGOs, and educational organizations at nominal rates. The new rules, however, propose a rental value based on the government’s guidance value, along with a deposit requirement of ten times the rental amount. The revised procedure grants the Chief Commissioner the authority to lease properties for periods ranging from 5 to 15 years with council approval. Leases exceeding 15 years but less than 30 years will require prior government approval. Furthermore, no property can be leased for more than 30 years under any circumstances. After the lease expires, the property will automatically revert to BBMP without encumbrances. Additional provisions in the draft rules include a 7% reservation for Scheduled Tribes (STs), 17% for Scheduled Castes (SCs), and 2% for individuals with over 40% disability. The updated process aims to reduce litigation and provide a more efficient framework for property management. Finally, the BBMP can sell its properties to state or central government departments or public sector undertakings with the prior approval of state authorities. The proposed changes are expected to enhance BBMP's revenue base while ensuring equitable access to properties for various sectors. The notification of these draft rules marks a significant shift in the approach to urban governance and property management in Bengaluru.

Related Stories

Gold Stories

Next Story
Infrastructure Transport

Mumbai-Ahmedabad Bullet Train’s Surat-Vapi Section Set for 2027

The first section of the Mumbai-Ahmedabad Bullet Train corridor, linking Surat and Vapi, is targeted to begin services in 2027. Construction is expected to be completed by December 2026, while Railway Minister Ashwini Vaishnaw has indicated that an inauguration could take place around the middle of 2027. The National High Speed Rail Corporation (NHSRCL) said the train being manufactured in India is expected to reach the tracks around April or May 2027. The train will undergo extensive testing before the section is opened for passenger services. The project began construction in 2021 and includ..

Next Story
Infrastructure Transport

Indian Railways Approves Four Projects Worth Rs. 7.36 bn Across Four States

Indian Railways has approved four projects with a combined value of Rs. 7.36 bn across Uttar Pradesh, Maharashtra, Andhra Pradesh and Gujarat. The programme covers train protection, signalling, electric traction supply and a road overbridge, with each project assigned to a different railway zone. In Uttar Pradesh, Rs. 2.52 bn has been approved to extend the Kavach 4.0 automatic train protection system across 607.7 km in the Lucknow Division of North Eastern Railway. The system monitors train movements and can apply the brakes if a driver fails to observe a signal or exceeds a safe speed. The w..

Next Story
Infrastructure Urban

Chandru Raheja Sells 1.49% Stake in Mindspace REIT for Rs. 5 bn

Billionaire Chandru Lachmandas Raheja has sold a 1.49 per cent holding in Mindspace Business Parks REIT for Rs. 5 bn through a bulk deal on the BSE. The transaction involved 9.9 mn units and was executed at an average price of Rs. 505 per unit, according to exchange data. Following the sale, units of Mindspace Business Parks REIT were trading 0.18 per cent lower at Rs. 504.05 on Tuesday. Exchange data did not identify the buyers involved in the transaction. Raheja is the chairman of real estate company K Raheja Corp. The sale involved 99,00,990 units, representing 1.49 per cent of the Mumbai-b..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code