2024-01-08 03:19:00
Bengaluru Municipal Corporation Plans to Sell Properties to Boost Revenue
The Bengaluru Corporation is facing financial crisis and is looking for ways to increase revenue. In a bid to overcome its financial challenges, the corporation is planning to sell its properties at today’s market prices.
The corporation has been reliant on property tax as well as other revenues, including advertising tax, to remain financially afloat. However, in recent years, the corporation had to mortgage its properties in the bank and borrow crores of rupees to meet its financial obligations.
To address this issue, Bengaluru Municipal Corporation officials have announced plans to implement the ‘Bangalore Municipal Corporation Property Management Regulations – 2023’. The corporation has sought permission from the government to amend the existing law and bring new regulations.
According to the draft regulations, the corporation can sell its properties after obtaining prior permission from the government. The norm is to sell the property through public auction, and the letting of properties for multi-year contracts and on a rent basis has been curbed.
With 6,815 properties owned by the Corporation in Bangalore, 234 properties in the heart of the city are currently under contract. A total of 78.19 lakh square feet of land has been put up for contract, and as these were given for a very minimal amount, the Corporation has incurred losses.
In an effort to boost the economy, the corporation has decided to sell its assets. However, it will only be allowed to sell to government departments, including central and state government departments, government agencies, corporations, and boards. Private purchase is not allowed.
The decision to sell properties at market prices with strict regulations in place is seen as a key move by the Bengaluru Corporation to address its financial challenges and ensure better management of its assets.
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