Landowners lash out over ₹27,000-crore Bengaluru Business Corridor; fresh compensation order sparks protests

The long-delayed Bengaluru Peripheral Ring Road (PRR) project, recently rebranded as the Bengaluru Business Corridor (BBC), has once again ignited tensions among landowners after the state government issued a revised order on October 17 outlining a new compensation and development framework.

Valued at ₹27,000 crore, the ambitious project aims to decongest Bengaluru’s traffic by connecting East, North, and South zones through a 74-km corridor spanning nearly 2,560 acres. However, instead of being executed directly by the Bengaluru Development Authority (BDA), it will now be implemented through a Special Purpose Vehicle (SPV) created under the BDA Act.

Landowners claim this change undermines accountability and complicates grievance redressal. The new order also states that land acquisition will continue under the BDA Act, 1976, rather than under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (LARR) Act, 2013. This move, backed by a 2022 Supreme Court ruling, exempts the project from offering enhanced compensation or rehabilitation benefits, angering affected families who have waited nearly two decades for relief.

One of the biggest concerns surrounds the “35% land return” clause, which allows owners to reclaim a portion of their developed land in lieu of cash compensation. Landowners argue that there is no clarity regarding the location, value, or timeline of the returned land. “If we lose 65% of our property, what assurance do we have that the remaining 35% will be of equal worth?” asked a farmer from Hennur.

The revised design also allocates 65 metres for the road and 35 metres for commercial development to fund compensation, sparking allegations that the project is being transformed into a real estate venture. Adding to the controversy, a 500-metre impact zone has been notified on both sides of the corridor, making nearby landowners liable to pay Betterment Tax, something they call a “double penalty.”

Critics say the Cabinet-approved order lacks public consultation and violates constitutional provisions guaranteeing property rights and participatory planning. Landowners have demanded a Metropolitan Planning Committee (MPC) review and fair-market compensation aligned with current land values.