Cash-strapped BBMP yet to recover ₹1k Cr from realtors, Real Estate News, ET RealEstate

Bangalore: Despite amending the law to save itself from dire financial straits, the Greater Bangalore Municipal Corporation ,BBMP) Pending fees of over Rs 1,000 crore in respect of various construction projects are yet to be recovered from builders.

BBMP collects land rent, license fee, building license fee, inspection fee and miscellaneous charges from builders for approving plans. The collection was partially stayed after the realtors approached the high court challenging the circular raising the fees.

The high court directed the civic body to collect half the amount of the total fee and in August 2021, it struck down the circular. With the prospect of returning the Rs 2,362 crore it had collected staring the BBMP in the face, the Karnataka Municipal Corporation and Certain Other Laws (Amendment) Act-2021 was amended in January 2022. This enabled the BBMP to not only retain the money it had collected but also recover pending fees of Rs 1,200 crore.

Veeresh, an RTI activist who will file a complaint in this regard with the competent authorities, told TOI that between 2015 and 2021, the urban local body collected only partial fee amount from relatives who approached the court and Over 100 builders moved the High Court. This cost the BBMP heavily and according to a rough estimate, the dues are about Rs 1,200 crore.

Veeresh said that the municipality which amended the law has not yet started the process of collecting the pending money. He alleged that due to the builder-official nexus, the municipal officials are deliberately delaying it. Amresh S, a civic activist, said the civic body always talks about paucity of funds when it comes to compensating the public, but it cannot set the ball rolling to collect the pending fees.

Girish, Additional Director, BBMP (Town Planning), admitted that the Palike is yet to initiate the process. He, however, said that he does not have exact figures regarding the pending fees, but it could be a little less than Rs 1,000 crore.

“We are taking advice from the legal department and in my opinion a revised fee circular should be issued,” he added. He also said that BBMP had not collected 50% of the total fees from all and the amount collected was based on what the court had said in individual cases. In some cases, it was 50% and in others, less. He said that the municipality would soon start the process of recovering the dues.