Thursday 6 February 2014

Betterment Charges for plots in illicit layouts by BBMP

Property owners who own sites or land that require land use conversion clearance but if clearance are not obtained from the civic agencies and those land canceled by several government agencies for acquiring will be charged with betterment fee by the BBMP. The Bruhut Bangalore Mahanagara Palike (BBMP) decided to execute different betterment fee slots depending on the site location.

The payment of betterment fee will permit land owners to get the A Khata. At present, the owners who have only B Khatas are not eligible for bank loans, as these lands don’t have approvals from civic agencies like BMRDA and BDA.

Though charging betterment fees, the civic body, which is in need of money is planning for additional revenue flow of up to Rs.200 Crore.

The BBMP has come up with two different slots; one with a betterment fee of Rs.350 per sq. mt. for properties that measure up to 1,000 sq. mt. and the other slot being Rs.300 for lands measuring more than 1,000 sq. mt. But, it is noticed that most of the lands to benefit are located in peripheries of the city and are included in areas that falls under the control of BBMP.

The BBMP has given the site owners with the flexibility of paying this betterment fee in four installments and property owners who want to pay in more than four installments are levied with an interest of 1.5 per cent per month.

However this decision should be approved by the Karnataka High Court, which has repressed earlier two notifications by the BBMP in respect to the same matter.

BBMP officials in regard to the betterment fee said that the charges were fixed based on the money spent and to be spent in the development of the infrastructure in major and newly added areas of Bangalore City. They also added that the lands should have obtained land use conversion clearance but if clearance are not obtained or those sited occupied that are cancelled by government agencies like BDA, KHB, KIADB, and other government organizations.

One of the BBMP officials said that the betterment fee charged will generate a revenue of about Rs.200 crore for the BBMP that will make easy for people to build houses and sell plots and lands. The official also added that most of the sites situated on the outskirts of the city are appropriate for the benefits of betterment fee scheme.

Another official also stated that the betterment fee is charged for revenue sites and is applicable only for those sites where land use conversion clearances is necessary.The previous even betterment fee of Rs.550 was defied in the High Court and now the revised betterment fee will be submitted in the court within a week and will act as per its direction.
Summary:

Area wise betterment fee:
  • For area of 1000 sq. mt. – Betterment fee will be Rs.350 per sq. mt. (10.8 sq. mt.)
  • For area of more than 1000 sq. mt. – Betterment fee will be Rs.300 per sq. mt. (10.8 sq. mt.)
Who will be charged?
  • Sites with land use conversion clearance but without layout plan sanctions from civic agencies like BDA and BMRDA
  • Sites acquired on which land denotification issued by government agencies
Who are not charged?
  • Revenue sites
  • Land those that don’t have land use conversion clearances
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