BDA renews efforts to collect betterment fees in Bengaluru, targets principal of over ₹3,000 crore

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BDA bureau   successful  Bengaluru. BDA Act, 1976, states that spot   owners person  to wage  a betterment interest  wrong   90 days of it being notified, and immoderate  hold  volition  pull  a 2% punishment  each   month

BDA bureau successful Bengaluru. BDA Act, 1976, states that spot owners person to wage a betterment interest wrong 90 days of it being notified, and immoderate hold volition pull a 2% punishment each month | Photo Credit: SUDHAKARA JAIN

Bangalore Development Authority (BDA) has renewed efforts to cod betterment charges from onshore ‘notified and aboriginal near out’ from the layout strategy successful 22 layouts it has developed successful Bengaluru. BDA has been trying to mop up implicit ₹3000 crore successful betterment complaint from these properties for a decennary now, but has failed to cod the money.

On February 25, BDA issued a nationalist announcement successful this regard. Sources successful BDA said the committee whitethorn determination up with stern measures, similar demolitions and auction properties of owners who neglect to wage the fee. 

Efforts to cod betterment interest successful these layouts started successful 2015. Then Chief Minister Siddaramaiah had announced a strategy to regularise ‘encroachment of BDA land’ successful lieu of betterment interest of astir ₹3500 crore. This chiefly targeted 2,262 acres dropped from Arkavathi Layout scheme, and 610 acres dropped from Nadaprabhu Kempegowda Layout scheme.

BDA is besides collecting betterment interest for properties near retired of the layout strategy astatine K. Shivaram Karanth Layout, the latest layout it has developed.

The nationalist announcement issued connected February 25, however, focuses connected the aged layouts wherever determination are betterment interest arrears.

Since these landowners are besides beneficiaries of the improvement activities, similar roads, drainage, streetlights, and water, taken up by BDA, they are bound to wage a betterment interest arsenic per the BDA Act, 1976.

Betterment interest is fixed arsenic one-third of the emergence successful guidance worth of the onshore successful the country aft the enactment of the layout. 

However, this was challenged successful courts, and astir onshore owners did not wage betterment fees successful the past decade. Sources successful BDA said Comptroller and Auditor General (CAG) reports person besides flagged the authority’s nonaccomplishment to cod betterment interest amounting to ₹3,000 crore from 22 layouts, and the contented is present earlier the Public Accounts Committee (PAC).

Following BDA winning respective verdicts successful its favour, the authorization has again started efforts to cod betterment fee. 

BDA is gathering the Bengaluru Business Corridor and a abbreviated passageway and rotary flyover connected the Hebbal - Mehkri ellipse agelong among different projects for which it is connected a thrust to mop up funds.

Property-owners request punishment waiver

BDA Act, 1976, states that spot owners person to wage a betterment interest wrong 90 days of it being notified, and immoderate hold volition pull a 2% punishment each month.

BDA is present keen connected collecting betterment interest from landowners of ‘left out’ properties successful these 22 layouts, on with involvement and punishment from the day of notification of betterment interest implicit a decennary ago.

“The main unsocial is expected to fetch ₹3,000 crore. Including punishment and involvement volition instrumentality that magnitude to respective times the principal. There is simply a request from property-owners to waive disconnected involvement and penalty. But, we bash not person that discretion,” a elder BDA authoritative said. 

G. S. Sridhar, whose location successful a backstage layout developed connected onshore dropped from the Arakavathi Layout strategy astatine Jakkur, said the betterment interest for his 30X50 crippled adds up to ₹5.04 lakh. The punishment and involvement would peg the full magnitude astatine implicit ₹20 lakh. “Like the authorities of Karnataka gave a One Time Settlement (OTS) strategy for spot taxation and h2o measure arrears, wherever lone main was paid and punishment and involvement was waived off, an OTS should beryllium provided for america arsenic well,” helium urged. 

Published - February 25, 2026 05:07 p.m. IST

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