Bangalore Authority Aims to Collect ₹3,000 Crore in Fees
The Bangalore Development Authority (BDA) is renewing its efforts to collect over ₹3,000 crore in outstanding betterment fees. The agency aims to use the recovered funds for infrastructure projects and the improvement of civic amenities across the city. These fees have reportedly been pending for a significant period.
- The betterment fee is a charge levied on landowners who have benefited from infrastructure development like roads, drainage, and streetlights provided by the BDA. It is calculated as one-third of the increase in the land's guidance value after a layout is formed. - This outstanding amount of over ₹3,000 crore in principal has accumulated over the last decade from properties in 22 BDA-developed layouts. Many landowners challenged the fee in court, leading to widespread non-payment. - According to the BDA Act of 1976, failure to pay the fee within 90 days of notification incurs a 2% monthly penalty, which could increase the total collectible amount to several times the principal. Property owners are now demanding a one-time settlement scheme to waive the interest and penalties. - The Comptroller and Auditor General (CAG) has previously criticized the BDA for its failure to collect these fees, noting that between April 2019 and March 2022, only ₹3.22 crore of a projected ₹3,503.63 crore was collected from just the Arkavathy and Nada Prabhu Kempegowda Layouts. - The BDA has indicated it may take stern measures, including property demolition and auctions, against those who fail to pay the pending fees. This renewed collection drive comes as the BDA has recently won several court verdicts in its favor regarding the matter. - Funds from the fee collection are earmarked for major infrastructure projects, including the Bengaluru Business Corridor and a tunnel and rotary flyover on the Hebbal-Mehkri circle stretch.
