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In an effort to generate revenue for developmental projects without burdening taxpayers, the Bruhat Bengaluru Mahanagara Palike (BBMP) is focusing on its immovable properties, such as buildings and open spaces it owns or manages. The civic body plans to sell or lease these properties through a public auction, linking the rental value to the government's guidance value. Recently, BBMP notified draft rules on property management, seeking public objections. These rules aim to streamline the leasing process, make BBMP more self-reliant, and address issues like low rental values and lengthy leases to religious or educational institutions.
In a move to boost its revenue without placing additional financial burdens on citizens, the Bruhat Bengaluru Mahanagara Palike (BBMP) is looking to its immovable properties, such as buildings and open spaces, for potential income. The civic body has its sights set on selling or leasing these properties through a public auction process. In a bid to make this process more transparent, BBMP proposes to link rental values with the properties' guidance value, along with introducing a fixed lease term. Advertisement
Earlier this week, BBMP notified draft rules and invited public objections within a 30-day period. These proposed Bruhat Bengaluru Mahanagara Palike (Estate Management) Rules 2024 call for a comprehensive inventory of all BBMP's immovable properties under the estate wing. The goal is to streamline the process of managing and leasing out properties that fall under the civic body's control. According to Tushar Giri Nath, BBMP's chief commissioner, these rules are designed to ensure better discipline and management of properties within BBMP areas.
He explained that while property management outside of BBMP areas has adhered strictly to such rules, internal management has been more lax. The introduction of these estate rules under the BBMP Act will give the civic body greater authority, making it more economically self-reliant and empowered to generate revenue. Nath further mentioned that many of the properties are currently leased to religious institutions, NGOs, or educational establishments at nominal rates, but the new rules would change that.
Under the proposed changes, rental values will be linked to the government's guidance value, and lessees will be required to pay a deposit 10 times the rental amount. As it stands, properties are leased with approval from the BBMP council's elected standing committee, with the chief commissioner able to lease properties for 11 months. However, for longer leases 15 years or more council approval is required, and leases lasting more than 15 but fewer than 30 years need government approval.
The new draft proposes that the chief commissioner could lease properties for a period of 5 to 15 years with council consent. Additionally, no BBMP property could be leased for more than 30 years. When a lease term ends, the property will automatically revert back to BBMP, free from any encumbrances.
The draft rules also outline certain reservations, including 7 per cent for Scheduled Tribes (STs), 17 per cent for Scheduled Castes (SCs), and 2 per cent for individuals with more than 40 per cent disability. This addition is expected to reduce litigation concerns. Moreover, the rules state that a lessee may only receive one extension before the property must go up for auction again. If a lessee fails to pay rent, their contract can be terminated, and the deposit forfeited. Additionally, the rules would allow BBMP to sell its immovable properties to state or central government departments or public sector undertakings, but only with prior approval from state authorities.
BBMP's new proposals to manage its immovable properties reflect a move towards financial self-sufficiency, aiming to generate revenue through transparent leasing and sales methods. By linking rental values to the government's guidance value and introducing fixed lease terms, BBMP is seeking to ensure that it maximizes returns on its assets while maintaining fair practices. With the introduction of rules for specific reservations and lease durations, the civic body hopes to address challenges in property management, promote equity, and limit prolonged legal disputes. If implemented, these changes could significantly impact BBMP's revenue model and bring greater accountability to its property dealings.
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