KMC Act to be amended; BBMP won’t have to refund ₹2,000 crore

The State Cabinet has decided to promulgate an ordinance to amend the Karnataka Municipal Corporations Act, 1976, to safeguard the Bruhat Bengaluru Mahanagara Palike (BBMP) from refunding about ₹2,000 crore deposited by landowners, real estate developers, and others in the form of ground rent, licence fee, building licence fee, security fee, security deposit fee, and other charges under its bylaws for sanction of building plans.

The Cabinet took the decision to amend the KMC Act following a judgment of the High Court of Karnataka that the BBMP bylaws, under which the fees are collected, are contrary to the provisions of the KMC Act.

The court said the BBMP has no authority to levy fees and directed the civic body to refund nearly ₹2,000 crore deposited by petitioners, and several landowners, real estate developers and others, Law and Parliamentary Affairs Minister J.C. Madhuswamy told reporters after the Cabinet meeting on Monday.

The amendment would save the BBMP from refunding the amount and protect the civic body from incurring severe financial difficulties, the Minister said.

Construction of houses

The Cabinet has decided to hand over 69.07 acres of government gomal/ kharab lands in various locations in the Bengaluru Urban district for the Rajiv Gandhi Housing Corporation Limited for construction of one lakh houses in the city.

The Cabinet decided to provide relief to the tune of 50% in the total interest rate to be paid by various organisations by coming forward to pay the full amount of lease fee for utilizing CA sites for running schools or charity activities. It would not be applicable for those using CA sites of the BDA for commercial activities, the Minister said.

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