Deccan Herald 03.01.2014
Now, Palike to mortgage Johnson, Russel markets
After mortgaging the KR Market and Public
Utility Building, the debt-ridden BBMP has decided to mortgage its two
other important buildings – Johnson Market and Russel Market – in order
to get a loan of Rs 200 crore from Canara Bank.
The
decision was taken to generate resources for paying interest to the
Housing and Urban Development Corporation (Hudco), from which the Palike
has borrowed money. The BBMP had contemplated to mortgage the historic
Sir Puttanna Chetty Town Hall, but the plan was dropped as Chief
Minister Siddaramaiah objected to it.
“At any cost, Town Hall
will not be mortgaged. The government can consider mortgaging any other
Palike property,” said Siddaramaiah at a public function on Thursday.
Hudco loan
A year ago, the BBMP had borrowed Rs 200 crore from Hudco to clear dues to contractors through the ‘hundi’ system.
BBMP
officials said the decision to shift the loan from Hudco to Canara Bank
was taken in view of the 14.2 per cent interest rate in Hudco, which is
3.36 per cent higher than Canara Bank. Following the decision, the BBMP
has started gathering records pertaining to the two important
buildings.
The Russel Market is nearing a century of its construction.
