BBMP reclaims 2 mortgaged properties @ Bengaluru

BBMP reclaims 2 mortgaged properties @ Bengaluru

The BBMP reclaimed two of its mortgaged properties – slaughter House on Tannery Road and Rajajinagar complex.

The BBMP which is cash strapped, has managed to take back two of its pledged properties.  On 16th November 2018, the BBMP repaid the loan to the tune of 21.47 crore.  Also an interest of Rs.2.79 crore which was outstanding with the Housing and Urban Development Corporation (HUDCO) was paid

The palike had received a lot of criticisms when various land marks were pledged with HUDCO to avail loans.  Rs.2389 crore was taken by Bruhat Bengaluru Mahanagara palike by mortgaging 11 properties.  By the end of 2015-16 the outstanding amount was Rs.1796.41 crore.

The BBMP had to avail loans because a number of infrastructure projects had to be taken up in the newly added 110 villages. These villages were newly added when the administration expanded during 2007-08.

There was a need to create and provide infrastructure to these areas on part with the main areas.  The Government had not been a guarantor for he loans availed by the BBMP.  The cash strapped BBMP failed to repay the same.

Mortgage details :

According to G.Parameshwara, Deputy Chief Minister and Bengaluru Development Minister Rs.498.64 crore was paid in 2016.-17. By paying this, the BBMP took back Kempegowda Museum, Mayo Hall and Johnson market.

In 2017-18 the BBMP took back Malleshwaram Market by paying Rs.496-53 crore.

A loan of Rs.871-67 crore was shifted to State Bank of India including 5 pledged properties as the rate of interest is low at the Nationalized bank.

This year the BBMP has already paid Rs.259.29 crore including Rs.40.05 as interest to State Bank of India.

According to the Deputy Chief Minister, as on date the loan amount outstanding is Rs.652.43 crore.  The BBMP is working towards clearing this outstanding loan to reclaim the remaining 5 pledged properties.  They are

  1.   K.R. Market
  2.   Dasappa Building
  3.   Public Utility Building
  4.   BBMP Office (East Zone)
  5.  Kalasipalya Market.

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