The State government will be tabling an amendment to the Bruhat Bengaluru Mahanagara Palike Act (BBMP), 2020 to regularise the collection of ground rent with retrospective effect.
The Cabinet on Thursday gave its approval for the provision that was sent by the Urban Development Department (UDD). The amendment will stop the BBMP from paying nearly ₹2,300 crore to builders. The builders had earlier approached the High Court (HC) challenging the ground rent system, and the court termed the system “illegal” and directed the BBMP to return the money to the builders.
According to sources in the real estate community, the BBMP collects ground rent from builders for them using public space to dump construction material. This, along with scrutiny fee and various cess, is linked to the guidance value of property.
