Karnataka Government issues draft notification for BBMP Estate Management Rules 2024 for better handling of public assets

The State Government aims to streamline the management of BBMP properties, ensuring better utilisation and protection of public assets while also addressing the needs of disadvantaged communities.

In a bid to enhance rental income and safeguard its assets, the government of Karnataka has issued a draft notification for the Bruhat Bengaluru Mahanagara Palike (BBMP) Estate Management Rules 2024.

The proposed rules impose a restriction on BBMP, limiting the leasing of its immovable properties to a maximum of 30 years.

Citizens have been given 30 days to submit objections or suggestions regarding the draft rules, which were published on July 20.

Key provisions of the draft notification include stringent restrictions on property sale. BBMP will be permitted to sell its properties exclusively to government departments, public sector undertakings, and government-owned organisations, subject to prior approval from the government of Karnataka. Sale to private individuals, institutions, and companies are explicitly prohibited, thereby ensuring the protection of public assets.

The new draft rules introduce a tiered leasing system. The Chief Commissioner will have the authority to lease properties for up to five years, pending prior approval from the relevant standing committee. Leases extending from five to 15 years will require the approval of the council, while leases between 15 and 30 years will necessitate sanction from the government of Karnataka.

This structured leasing approach is designed to prevent excessively long lease periods, such as the 99-year leases previously granted to certain entities, including a multi-speciality hospital.

Additionally, the draft rules include provisions for the allocation of shops on lease to disadvantaged groups. Specifically, 17% of shops will be reserved for Scheduled Castes (SC), 7% for Scheduled Tribes (ST), and 2% for persons with disabilities (with at least 40% disability). These allocations will be executed through open auction.