Deccan Herald                 04.01.2014

Palike yet to reclaim 11 pawned properties

The Bruhat Bangalore Mahanagara Palike (BBMP)
took the now-discarded decision to pawn the historic Sir Puttanna Chetty
Town Hall despite having failed to get back any of the 11 properties it
had put up as collateral for earlier loans.

In 2008, according to sources, financial difficulties forced the Palike to pawn and lease various properties.

Some
of the properties pawned over the years include the Public Utility
Building, K R Market, the markets in Malleswaram, Jayanagar 4th Block,
Kalasipalya,  and Rajajinagar, Dasappa Hospital (near Town Hall),
Kempegowda Museum (near Mayo Hall), Western Rangers’ Building and
Tannery Road slaughterhouse. In addition, the BBMP had leased as many as
394 of its properties in different zones to various individuals and
firms, sources added.

After Chief Minister Siddaramaiah directed the BBMP to
keep off Town Hall, the civic agency set its eyes on the historic
Russell Market, Johnson Market and the multi-level parking complex on
J C Road and planned to pledge them to Canara Bank.

But Mayor B S
Satyanarayana said the plan would not move without a go-ahead by the
government. The BBMP Council decided to this effect on Friday.

Meanwhile,
former Mayor D Venkatesh Murthy said the Palike’s financial
difficulties were the result of unplanned works carried out by newly
elected MLAs in their respective constituencies during 2008-10.

Sources of revenue

“Those
projects were not mentioned in the budget, and the BBMP did not frame
the project costs, hence the debts,” he told Deccan Herald. “The Palike
can bounce back if the expected revenue from the Sakrama Act (the
Karnataka Land Revenue (Second) Amendment Act, 2012) comes in. It should
also regularly collect the property tax and the tax from companies that
lay the Optical Fibre Cables (OFCs).”

Palike sources, however,
said that the government should bail out the civic agency. “The chief
minister earlier announced to give the Palike Rs 1,000 crore but so far
we have received only Rs 300 crore,” a BBMP official said.

PPP model

Meanwhile,
to make itself financially stable, the Palike is considering inviting
corporate houses, NGOs and like-minded people to maintain parks,
schools, colleges, footpaths and roads on a Public Private Partnership
(PPP) model.

The mayor said the proposal would be discussed at a meeting to be chaired by Chief Minister Siddaramaiah later this month.

Besides,
the BBMP is planning to introduce automated car parking system at its
head office and in Gandhinagar. It has also planned to build about 40
bus shelters and 100 toilets in the coming days.