(1)

Ļ¯ೇಷ ªಾಜÍ ಪĦΐೆ

GOVERNMENT OF KARNATAKA

No.UDD 280 BBS 2023 (E) Karnataka Government Secretariat,

Vikasa soudha,

Bengaluru, Date:20-07-2024.

NOTIFICATION

The

draft

of

the

Bruhat

Bengaluru

Mahanagara

Palike

(Estate Management) Rules, 2024, which the Government of Karnataka

proposes to make in exercise of the powers conferred by section 316 read with

sections 66, 67 and 130 of the Bruhat Bengaluru Mahanagara Palike Act, 2020

(Karnataka Act 53 of 2020) is published as required by sub-section (1) of section

316 of the said Act, for the information of all the persons likely to be affected

thereby and notice is hereby given that the said draft will be taken into

consideration after the expiry of thirty days from the date of its publication in the

official Gazette.

Any objection or suggestion which may be received by the State Government

from any person with respect to the said draft before the expiry of the period

specified above will be considered by the State Government. Objections and

suggestions may be addressed to the Additional Chief Secretary to Government,

Urban Development Department, Vikasa Soudha, Bengaluru - 560001.

DRAFT RULES

1. Title, commencement and application.-(1) These rules may be

called the Bruhat Bengaluru Mahanagara Palike (Estate Management) Rules,

2024.

¨sÁUÀ – 4 J

Part – IVA

20

2024

29

1946)

BENGALURU, SATURDAY, 20, JULY, 2024(ASHADHA, 29, SHAKAVARSHA, 1946)

. 347

No. 347

2

(2) They shall come into force from the date of their final publication in the

official Gazette.

(3) These rules shall be applicable for the purposes of estate

management under Chapter XI of the Bruhat Bengaluru Mahanagara Palike

Act, 2020.

2. Definitions.-(1) In these rules, unless the context otherwise

requires,-

(a) “Act” means the Bruhat Bengaluru Mahanagara Palike Act, 2020

(Karnataka Act 53 of 2020);

(b) “Estate of BBMP” means the immovable properties under the

ownership, control and management of the Bruhat Bengaluru Mahanagara

Palike;

(2) All other words and expressions used herein but not defined shall

have the same meaning as assigned to them in the Act.

3. Management of the estate.- (1) The Estate Department of the

Bruhat

Bengaluru

Mahanagara

Palike

shall

be

responsible

for

implementation of these rules under overall superintendence, direction and

control of the Chief Commissioner, subject to the provisions of the Act and

other applicable laws for time being in force. The Zonal Commissioners shall

be responsible for implementation and obedience of these rules at Zonal

level.

(2) Only such estate of the Bruhat Bengaluru Mahanagara Palike,

either land or building or both, which is neither at present needed for own

or public use by the Bruhat Bengaluru Mahanagara Palike, nor such a use

is visualised, may be sold or leased by the Bruhat Bengaluru Mahanagara

Palike.

(3) Every sale or lease by the Bruhat Bengaluru Mahanagara Palike

shall be by public auction, subject to exceptions provided in these rules.

4. List of immovable properties.- (1) The list of immovable properties

of the Bruhat Bengaluru Mahanagara Palike shall be maintained by the Chief

Commissioner through Estate Department of the Bruhat Bengaluru

Mahanagara Palike.

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(2) A copy of the same shall be maintained by the Zonal Commissioners

for the immovable properties in their respective Zones. The same shall be

updated as per provisions of the Act by the Zonal Commissioners and

conveyed to the Chief Commissioner for his approval.

5. Sale of immovable properties.-(1)The sale of immovable properties

of the Bruhat Bengaluru Mahanagara Palike shall be only to the departments

of the State or the Central Government or Public Sector Undertakings or

organizations or bodies owned by the State or Central Government and not

to anyone else and with prior sanction of the Government.

(2) The sale shall be at the guidance value of the property as per the

notification issued by the Revenue Department, from time to time, under

section 45B of the Karnataka Stamp Act, 1957 (Karnataka Act 34 of 1957):

Provided that the State Government reserves the right to give rebate on

the same either partially or fully in public interest.

6. Lease of immovable properties.-(1) The Chief Commissioner may

lease immovable properties of the Bruhat Bengaluru Mahanagara Palike for

a term not exceeding five years with the previous sanction of the concerned

Standing Committee. The sanction may be accorded by the Standing

Committee as a class or group or all the properties of the Bruhat Bengaluru

Mahanagara Palike as may be deemed proper.

(2) The Chief Commissioner may lease immovable properties of the

Bruhat Bengaluru Mahanagara Palike for a term for more than five years but

not exceeding fifteen years, with the previous sanction of the Council. The

sanction may be accorded by the Council as a class or group or all the

properties of the Bruhat Bengaluru Mahanagara Palike as may be deemed

proper.

(3) The Chief Commissioner may lease immovable properties of the

Bruhat Bengaluru Mahanagara Palike for a term for more than fifteen years

but not exceeding thirty years, only with the prior approval of the

Government.

(4) No lease beyond a term of thirty years shall be given for the

immovable properties of the Bruhat Bengaluru Mahanagara Palike:

(5) One extension of a lease which may have been given under any

mode hereinbefore, may be given for another term not exceeding the term or

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period of the last lease or the last extended lease, as the case may be. The

authority to approve the extension shall be same as prescribed under these

Rules for a fresh lease for the same term or period.

Provided that in case of properties whose lease has already expired but

the lessee continues to be in possession without any extension then

extension under these Rules may be given from the date of Notification of

these Rules for a term not exceeding the term-period of the last valid lease

or the last extended lease. The unauthorized occupation period until the date

of notification of these Rules may be regularized on same terms & conditions

as for the expired lease.

Provided further that no extension shall be given unless the lessee

has paid all, complete and up-to-date dues of the BBMP.

Examples:

(i) An immovable property is leased to A for a term of five years and is

nearing expiry, then A can obtain an extension for one more term of five

years.

(ii) An immovable property leased to B for a term of twelve years but

the same got expired and was given an extension of 3 terms. Now, B is eligible

for one more extension for three years.

(iii) An immovable property leased to C for a term of seven years but the

same got expired and C continued without extension unauthorizedly. Now,

B is eligible for one more extension for seven years from the date of

notification of these Rules.

(6) In case a present on-going lease has a term period more than thirty

years then, with prior permission of the Government, the Bruhat Bengaluru

Mahanagara Palike may give another renewal of the lease for a term period

not exceeding thirty years.

(7) At the end of the lease term or extended lease term, if any, the

immovable property shall stand automatically vested back to the Bruhat

Bengaluru Mahanagara Palike, free of all encumbrances.

(8) The lease of immovable properties of the Bruhat Bengaluru

Mahanagara Palike may be given at the minimum reserved One Time Deposit

(OTD) only to/for,-

5

(i) The State Government;

(ii) The Central Government;

(iii) Non-profit Homes for the old or destitute or differently-abled

persons;

(iv) Religious purposes/mathas and Not-for-Profitorganizations for

education and health purposes; and

(v) Such other category or class of persons as the Bruhat Bengaluru

Mahanagara Palike may decide with prior approval of the Government.

Provided that the State Government reserves the right to give rebate on

the applicable interest free One Time Deposit (OTD) as well as the applicable

monthly rent or lease amount either partially or fully in public interest.

(9) In case of extension of a lease under these Rules, the Lessee shall

be required to deposit the minimum reserved One Time Deposit to the BBMP

as interest free deposit to obtain the extension.

(10) In every other case the lease of the immovable properties of the

Bruhat Bengaluru Mahanagara Palike shall be given based on the public

auction of the interest free deposit that the bid winner shall keep with the

BBMP and the monthly rent payable by the lessee shall be subject to yearly

increase at the rate of 5% per annum from the date of signing of the

agreement of the lease or the date of Notification of these Rules – whichever

is later. Provided that any existing and subsisting leases shall continue to be

operate as per terms & conditions of the existing agreements and the same

are saved.

(11) Any unauthorized occupation of the immovable property of the

Bruhat Bengaluru Mahanagara Palike shall be evicted as per provisions of

the Karnataka Public Premises (Eviction of Unauthorized Occupants) Act,

1974.

7. Public auction for grant of lease of immovable properties.- (1)

The Zonal Commissioners may cause to put to public auction the immovable

properties.

(2) The public auction shall be on the interest free One Time Deposit

(OTD) that the auction winner shall keep with the Bruhat Bengaluru

Mahanagara Palike throughout the period of the lease.

6

(3) The One Time Deposit (OTD) is refundable to the lessee, without

any interest, after the vacation of the property upon completion of the lease

term or upon the termination of lease as per the provisions of the Act, rules

and the lease agreement:

Provided that the One Time Deposit (OTD) shall not be refunded for a

period of one year from the date of signing of the agreement of the lease.

(4) A single eligible bidder can bid for as many immovable properties

as he wishes.

(5) Sub-letting of the immovable property by the lessee shall not be

permitted.

(6) There shall be a minimum reserved One Time Deposit (OTD) for

each immovable property, called the Auction Upset Price, below which the

auction shall not be approved.

(7) The auction upset price or the minimum reserved One Time Deposit

(OTD) for each estate/property of the Bruhat Bengaluru Mahanagara Palike

according tosection 45B of the Karnataka Stamp Act, 1957 (Karnataka Act

34 of 1957)shall be as follows.-

(a) Lease term not exceeding five years: Not less than 5% (Five percent)

of Guideline Value of the property being leased out.

(b) Lease term from five to fifteen years: Not less than 7.5% (Seven and

Half percent) of Guideline Value of the property being leased out.

(c) Lease term from fifteen to thirty years: Not less than 10% (Ten

percent) of Guideline Value of the property being leased out.

(8) The Guideline Value shall take into consideration the value of both

land and the building while determining the above minimum reserved One

Time Deposit (OTD). The basic formula for the minimum reserved One Time

Deposit (OTD) shall be the Guidance Value multiplied by Plinth and/or plot

Area of the property being leased out.

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(9) The auction shall be done for each individual immovable property

capable being leased out and the bidder who bids the highest One Time

Deposit (OTD) shall be the auction winner.

(10) The auction winner shall deposit ten percent of the winning One

Time Deposit (OTD) amount on the spot with the Bruhat Bengaluru

Mahanagara Palike, within two hours of the bid being declared successful,

failing which the bid shall be rejected for default and the bidder shall be

treated as defaulter and disallowed from further bidding. The immovable

property shall be put to auction again.

(11) The remaining ninety percent of the winning One Time Deposit

(OTD) amount shall be deposited within fifteen days from the date of

declaration of auction as successful, failing which the bid shall stand

rejected for default and the bidder shall be treated as a defaulter and the ten

percent bid amount deposited with the Bruhat Bengaluru Mahanagara

Palike shall automatically stand forfeited, without any encumbrance on the

property, to the Bruhat Bengaluru Mahanagara Palike for the default. Such

a defaulting bidder shall be barred from bidding for a period of one year from

the date of forfeiture of the ten percent deposit amount.

(12) The monthly rental or the monthly lease payable for the immovable

property shall be as follows –

(A) Buildings or Shopping complexes other than centrally air-

conditioned:

(a) Street Facing Properties on the Ground Floor at 0.5% (half

percent) of the of the Guideline value of the estate/property

being leased as per the latest notification issued by the Revenue

Department under section 45 of the Karnataka Stamp Act,

1957(Karnataka Act 34 of 1957).

(b)

Properties facing the street but on basement at 90% of the

amount payable for the Street Facing Properties on the Ground

Floor.

(c) Properties not facing the street but on the ground floor at 90%

of the amount payable for the Street Facing Properties on the

Ground Floor.

(d)

Properties on the first floor at 75% of the amount payable for

the Street Facing Properties on the Ground Floor.

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(e) Properties on the second floor at 65% of the amount payable

for the Street Facing Properties on the Ground Floor.

(f) Properties on the third or higher floor at 55% of the amount

payable for the Street Facing Properties on the Ground Floor.

(B) Buildings or Shopping complexes which are centrally air-

conditioned:

(a) Properties on the Ground Floor at 0.5% (half percent)of the of the

Guideline value of the estate/property being leased as per the

notification issued by the Revenue Department from time to time

under section 45B of the Karnataka Stamp Act, 1957(Karnataka

Act 34 of 1957).

(b) Properties on basement at 90% of the amount payable for the

Properties on the Ground Floor.

(c) Properties on the first floor at 90% of the amount payable for the

Properties on the Ground Floor.

(d) Properties on the second floor at 75% of the amount payable for

the Properties on the Ground Floor.

(e) Properties on the third or higher floor at 65% of the amount

payable for the Properties on the Ground Floor.

(C) Open or vacant lands shall be liable to pay monthly rental or

monthly lease amount equal to 0.3% of the Guideline Value of the land as

per the notification issued by the Revenue Department from time to time

under section 45B of the Karnataka Stamp Act, 1957(Karnataka Act 34 of

1957).

(D) In case of extension of an existing lease or an expired lease under

these Rules, the lessee shall pay the monthly rent or monthly lease amount

equal to 115% of the last monthly rent or lease amount payable by him in

the previous lease or the monthly rent/lease amount payable as per

applicable Clauses (A) or (B) or (C) – whichever is lower.

Provided that such a monthly rent or lease amount is liable to

increase at a rate of 5% per annum from the date of the extension of the

lease.

(13) The

auction

shall

bein

compliance

with

the

Karnataka

Transparency in Public Procurement Act, 1999 (Karnataka Act 19 of 2000)

and the rules made thereunder. The auction could be either physical one or

on-line through e-Procurement Portal of the Government and the decision in

this regard shall be by the Chief Commissioner.

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(14) The advertisement for auction shall contain details such as type of

auction (online/physical), auction venue (if applicable), application fee,

immovable property and minimum auction upset price, contact details of the

auction nodal officerand be issued at least fifteen days in advance from the

date of auction and published in at least one English and one Kannada

newspaper with wide circulation in Bengaluru and Karnataka. Additionally,

the copies thereof shall be pasted in the Notice Board of the Zonal Office and

sent to all other Zonal Offices and all the offices of the Revenue officer and

Assistant Revenue officer for display in their respective office notice boards.

The advertisement shall also be put on the website of the Bruhat Bengaluru

Mahanagara Palike.

(15) Any person eligible to participate in the auction can participate in

the auction by applying and obtaining an application number by payment of

non-refundable application fee of Rupees One Thousand. The application fee

for the members of the Scheduled Caste and the Scheduled Tribe shall be

Rupees Seven Hundred and Fifty.

(16) The final auction winner shall be notified in terms of the

application number and name and other details of the applicant.

(17) The Zonal Commissioner shall make detailed proceedings of the

auction with the name and all relevant details of the auction winners for

each immovable property and submit to the Chief Commissioner for approval

and the specified agreement as per type of use and category of the immovable

property, shall be entered into with the auction winner accordingly, after the

approval.

8. Procedure for renewal of an expiring lease.- (1) The lessee gets

no inherent right beyond the term of his lease and the policy to extend an

existing lease is at the sole discretion of the BBMP and the extension may

not be given in case the property or land is needed for BBMP’s own use or

any other public purpose.

(2) The Bruhat Bengaluru Mahanagara Palike may choose to proceed

to lease the property as it exists or after demolition (in part or in full) and

reconstruction.The existing lessee shall give in writing his option to seek one

extension, without going through auction process, at any time at least 2

months before expiry of his on-going lease or,in case of an expired lease,

within 6 months of the date of Notification of these Rules. Failure to give

option in writing within the prescribed time limits shall be treated that the

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existing lessee does not wish to opt for extension of his/her lease without

auction process and the property shall be auctioned free from all

encumbrances. In case the present lessee with an existing lease chooses to

apply for another lease of a term equal to term of the existing lease then the

existing lease should be short-closed on the date from which the extended

lease term starts.

Illustrations

Illustration 1:

 “A” has a lease of a shop for 5 years starting from 1.4.2020 and is in

its 4^th year in 2024.

 A’s lease ends on 31.3.2025.

 At anytime on or before 31.1.2025 – which is 2-months before the

date of expiry of the current lease, “A” can seek extension of the lease

upto another 5 years term (which is the tenure of his existing lease)

for the shop from the BBMP.

 Let us say he seeks extension on 10.6.2024 for another term of 5-

years.

 Let us say that the BBMP grants extension for 5-years term on

15.7.2024. Then the present lease shall automatically deemed to

have been short-closed on 14.7.2024 and a extension lease for 5-

years shall be with effect from 15.7.2024 until 14.7.2029.

 No further extension shall be given to the extended lease after

14.7.2029 but “A” is eligible to participate in the open tender or

auction as per KTPP Act to win rights for another lease or renting of

the same or any other BBMP property/shop.

Illustration 2:

 “A” had a lease of a shop for 3 years starting from 1.4.2018 and it

expired on 31.3.2021. But “A” continued to be occupation without

getting any extension of his lease.

 “A” continues to be in occupation even now and is actually running

the business for which the lease was given.

 “A” is in unauthorized occupation of the shop and has not paid the

rents in these years.

 “A” is eligible to apply for ONE EXTENSION of the expired lease within

3-months of promulgation of these Rules.

 “A” shall pay upto date rent and interest and penalties (if any) and

only then “A” shall be eligible to be considered for ONE EXTENSION.

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 “A” gives all his rent and interest for previous arrears and brings his

rent and other dues payment to the BBMP uptodate.

 Now, “A” is eligible for one extension of 3-YEARS TERM (same as the

last validly held lease term) with effect from issuance of extension

order by the BBMP.

 The intervening period of unauthorized occupation shall be

regularized upon payment of all and complete dues uptodate and

when the order extending the lease for 3-years is passed.

 In case the extension order is issued on 19.7.2024 for 3 years then

the same shall be valid until 18.7.2027.

 No further extension shall be given to the extended lease after

18.7.2027 but “A” is eligible to participate in the open tender or

auction as per KTPP Act to win rights for another lease or renting of

the same or any other BBMP property/shop.

(3) In case the Bruhat Bengaluru Mahanagara Palike decides to lease

the properties as they exist, then Zonal Commissioner shall start the process

of re-auction following the procedure under rule 7, at least three months in

advance from the date of expiry of the lease, so as to complete the process of

selection of the new lessee before the expiry of the existing lease term, for

such shops for which the existing lessee does not opt to get one extension of

the lease. In case of plan of reconstruction, the auction of the new property

may be done at any suitable time after the vacation and demolition.

(4) In case the existing Lessee opts for participation in the open auction

then the regular procedure as applicable for a fresh lease and auction shall

be applicable. However, in case an existing lessee opts for one extension,

then the Lessee shall deposit One Time deposit (OTD) equal to 100% of the

minimum prescribed One Time Deposit (OTD) for such a property. The

Lessee shall deposit 100% of the Minimum OTD amount within fifteen days

of approval of the extension by the Bruhat Bengaluru Mahanagara Palike.

(5) In case of failure to deposit,the approval of extension shall stand

automatically withdrawn for default and the Lessee shall be treated as

defaulter and the property shall be put to open auction and the lessee shall

lose the right to get extension. However, such a lessee is eligible for bidding

or participation in open auction.

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9. Failure to lease out properties during the open auction.-(1)In

case of failure to get any successful bid for any property during an auction,

the auction for such properties shall be done for second time with due notice

and publicity with same terms and conditions as specified for the first open

auction.

(2) In case of failure to get any successful bid for any property during

the second auction as well, the auction shall be done for third time with due

notice and publicity and the minimum refundable One Time Deposit

(OTD)amount or the auction upset price shall be made 90% of the auction

upset price for the concerned property during the first open auction.

(3) In case of failure to get any successful bid for any property during

the third auction as well, the auction shall be done fourth time with due

notice and publicity and the minimum refundable One time deposit (OTD)

amount or the Auction Upset Price shall be made 80% of the Auction Upset

Price for the concerned property during the first open auction.

(4) However, in case of failure of auction even in the fourth time

auction, the matter shall be reported to Chief Commissioner with details and

the further decision shall be taken by the Chief Commissioner.

10. Reservation.-(1) In case of leasing out of shops under these rules,

17% of the same shall be reserved for the members of the Scheduled Caste

and 7% for the members of the Scheduled Tribe. The allotment shall be

through an open auction under these rules among the said category of

persons who are otherwise eligible.

(2) A reservation of 2% of the shops being leased out under these rules

shall be made for the persons with disability of not less than 40%. The same

shall be through an open auction under these rules among the said category

of persons who are otherwise eligible.

By Order and in the name of the

Governor of Karnataka

(H.S.SHIVAKUMAR)

Under Secretary to Government,

Urban Development Department

(BBMP-2 and Coordination).

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Date: 2024.07.20 17:22:00 +05'30'