The Times of India 07.03.2013
BBMP eyes farmers' land, middlemen make hay
BANGALORE: Farmers of Karenahalli, 35km from Bangalore in Ramanagaram district, are in the middle of a rip-off. BBMP
is ready to take over a large parcel of their land to set up a solid
waste management plant, but in return, will only hand over Transferable
Development Right (TDR) certificates.
The farmers are confused. All they know is that their fertile farmlands yielding mango and ragi - worth Rs 60 lakh to Rs 1 crore per acre -- are under threat. With reports that a landfill is likely to come up in the area and BBMP expressing willingness to buy their plots, the farmers are ready to sell their land but are distraught to be told that they won't be paid money, but will only be issued TDRs whose worth they are clueless about.
Cashing in on the uncertainty, middlemen are obtaining general power of attorney (GPA) from farmers for their plots. The middlemen are paying Rs 1 lakh per acre as advance, with an assurance of another Rs 40 lakh per acre after the BBMP gives away the TDRs. The middlemen, insiders say, will make a killing by selling the TDRs to builders who can use them for their projects on the outskirts of the city.
S Sri Harsha, a Karenahalli farmer, said, "Middlemen are buying land from farmers dirt cheap under GPA. With these documents in hand, they are approaching the BBMP, expressing their readiness to give away the land in return for TDRs. Over 80 acres of land has already changed hands under GPA. We are trying to advise farmers not to sell their land."
Confirming that GPA holders are approaching the civic body and offering land in Karenahalli, BBMP commissioner Siddaiah said the decision to buy land in Karenahalli was taken by the state cabinet when he was not in the post. "The cabinet has given its approval to acquire land through TDR. We had called for expression for interest. Objections were not received," he said.
However, sources in the BBMP said the invitation for expression of interest published four months ago had no mention of TDR. Land was sought voluntarily for setting up a solid waste management plant.
There is a great deal of resistance among Karenahalli farmers over the proposal to set up a garbage solution plant in their midst.
G Srinivasaiah, a farmer, said that they won't allow Karenahalli to turn into another Mandur or Mavallipura. "We will not allow garbage dumping or processing in our village," he told TOI.
TDR -- fraud by other name?
Urban experts are wondering at the rationale behind giving TDRs to farmers who have lost their land and have no penny to build their lives on.
"It's a racket. This can cause huge loss to farmers, as middlemen give only Rs 40 lakh to the farmer per acre, but earn Rs 3 crore by selling the TDRs in exchange for an acre of land to builders. TDR certificates issued for a land in Karenahalli can be sold within a 25km radius of the village. It can be sold on Bangalore's outskirts. It helps builders and middlemen and not farmers. In the interest of the public, BBMP must establish a TDR bank and curb the nuisance created by middlemen," said Gopal Rao, a property consultant working on TDR transactions.
'What is TDR?' asks mayor
"I myself don't know what TDR is and how it works out. I'm not aware of this. This decision must have been taken by the cabinet," said mayor D Venkatesh Murthy, when asked. Neither did he have an answer on how farmers can be helped by the BBMP, nor did he bother to explain the BBMP's stand, if any, on controlling middlemen.
Mr Mayor, here's what TDR is
Transferable Development Right certificates are given to property owners who give away their property to BBMP or any civic agency, in lieu of compensation. TDR is a tool for the government to acquire land for infrastructure work without providing monetary compensation. TDR certificates can be used by property owners or those to whom they are sold to allow a relaxation in building norms, like increasing the permissible floor area ratio and taking up vertical construction beyond the allowed limits.
BBMP TAKEN FOR A RIDE?
It looks like the BBMP is being misled. Essentially, these kind of land transactions can happen on cash transfer basis, with outright monetary compensation being paid to farmers. Otherwise, the farmers will be taken for a ride. The government must make sure the farmers' interests are adequately protected. There must be a regulatory authority set up to make sure the farmers are not short-changed. There is no healthy enforcement and market for TDR in Bangalore now.
The farmers are confused. All they know is that their fertile farmlands yielding mango and ragi - worth Rs 60 lakh to Rs 1 crore per acre -- are under threat. With reports that a landfill is likely to come up in the area and BBMP expressing willingness to buy their plots, the farmers are ready to sell their land but are distraught to be told that they won't be paid money, but will only be issued TDRs whose worth they are clueless about.
Cashing in on the uncertainty, middlemen are obtaining general power of attorney (GPA) from farmers for their plots. The middlemen are paying Rs 1 lakh per acre as advance, with an assurance of another Rs 40 lakh per acre after the BBMP gives away the TDRs. The middlemen, insiders say, will make a killing by selling the TDRs to builders who can use them for their projects on the outskirts of the city.
S Sri Harsha, a Karenahalli farmer, said, "Middlemen are buying land from farmers dirt cheap under GPA. With these documents in hand, they are approaching the BBMP, expressing their readiness to give away the land in return for TDRs. Over 80 acres of land has already changed hands under GPA. We are trying to advise farmers not to sell their land."
Confirming that GPA holders are approaching the civic body and offering land in Karenahalli, BBMP commissioner Siddaiah said the decision to buy land in Karenahalli was taken by the state cabinet when he was not in the post. "The cabinet has given its approval to acquire land through TDR. We had called for expression for interest. Objections were not received," he said.
However, sources in the BBMP said the invitation for expression of interest published four months ago had no mention of TDR. Land was sought voluntarily for setting up a solid waste management plant.
There is a great deal of resistance among Karenahalli farmers over the proposal to set up a garbage solution plant in their midst.
G Srinivasaiah, a farmer, said that they won't allow Karenahalli to turn into another Mandur or Mavallipura. "We will not allow garbage dumping or processing in our village," he told TOI.
TDR -- fraud by other name?
Urban experts are wondering at the rationale behind giving TDRs to farmers who have lost their land and have no penny to build their lives on.
"It's a racket. This can cause huge loss to farmers, as middlemen give only Rs 40 lakh to the farmer per acre, but earn Rs 3 crore by selling the TDRs in exchange for an acre of land to builders. TDR certificates issued for a land in Karenahalli can be sold within a 25km radius of the village. It can be sold on Bangalore's outskirts. It helps builders and middlemen and not farmers. In the interest of the public, BBMP must establish a TDR bank and curb the nuisance created by middlemen," said Gopal Rao, a property consultant working on TDR transactions.
'What is TDR?' asks mayor
"I myself don't know what TDR is and how it works out. I'm not aware of this. This decision must have been taken by the cabinet," said mayor D Venkatesh Murthy, when asked. Neither did he have an answer on how farmers can be helped by the BBMP, nor did he bother to explain the BBMP's stand, if any, on controlling middlemen.
Mr Mayor, here's what TDR is
Transferable Development Right certificates are given to property owners who give away their property to BBMP or any civic agency, in lieu of compensation. TDR is a tool for the government to acquire land for infrastructure work without providing monetary compensation. TDR certificates can be used by property owners or those to whom they are sold to allow a relaxation in building norms, like increasing the permissible floor area ratio and taking up vertical construction beyond the allowed limits.
BBMP TAKEN FOR A RIDE?
It looks like the BBMP is being misled. Essentially, these kind of land transactions can happen on cash transfer basis, with outright monetary compensation being paid to farmers. Otherwise, the farmers will be taken for a ride. The government must make sure the farmers' interests are adequately protected. There must be a regulatory authority set up to make sure the farmers are not short-changed. There is no healthy enforcement and market for TDR in Bangalore now.
