BBMP Proposes New Estate Rules to Boost Revenue

The Bruhat Bengaluru Mahanagara Palike (BBMP) has unveiled draft rules aimed at streamlining the management and leasing of its properties to bolster revenue for developmental projects. The civic body plans to implement a more structured approach by linking property rents to guidance values and setting fixed lease terms.

The Bruhat Bengaluru Mahanagara Palike (Estate Management) Rules, 2024, were notified on Wednesday, inviting public objections within 30 days. The proposed rules mandate a comprehensive inventory of all immovable assets managed by BBMP under its estate wing.

BBMP Chief Commissioner Tushar Giri Nath highlighted the need for these reforms, stating that property management within BBMP limits lacked the discipline observed in other regions. “These rules, added to the BBMP Act, will enhance the civic body’s authority, making it more economically self-reliant,” he said.

Currently, BBMP properties are often leased to religious institutions, NGOs, and educational organizations at nominal rates. Under the new rules, rental values will be tied to the government’s guidance value, with lessees required to pay a security deposit equivalent to ten times the annual rent.

The draft rules redefine leasing authority:

• The chief commissioner can authorize leases of up to 5–15 years with council approval.
• Leases exceeding 15 years but under 30 years require state government consent.
• No property can be leased beyond 30 years, and all leases will automatically revert to BBMP upon expiration.

Additionally, the rules introduce 7% reservation for Scheduled Tribes (STs), 17% for Scheduled Castes (SCs), and 2% for individuals with over 40% disability. To prevent misuse, lessees will receive only one extension, after which properties must be re-auctioned. Non-payment of rent could result in contract termination or forfeiture of deposits.

The BBMP also retains the option to sell properties to state or central government departments or public sector undertakings, subject to state approval.

Officials believe these rules will not only generate substantial revenue but also minimize litigation and streamline property management.