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.

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