₹3,000 cr revenue drive: BDA moves to levy betterment charges, property owners face major financial impact

In a major revenue push, the Bangalore Development Authority (BDA) has decided to collect betterment charges across 22 layouts, warning of penalties, property attachment, and even auction in case of non-payment.

In a significant move to strengthen its financial position, the Bangalore Development Authority (BDA) has decided to implement the long-pending collection of betterment charges from property owners across its layouts. The decision is expected to generate nearly ₹3,000 crore in revenue, but it also places a heavy financial burden on thousands of land and property owners.

The decision applies to 22 layouts that fall under BDA’s jurisdiction. As part of this exercise, the authority has resolved to issue notices to property owners, directing them to pay the prescribed charges within the stipulated time. Officials have made it clear that failure to comply will invite strict action, including penalties, attachment of property, and even public auction.

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Under the provisions of the BDA Act, 1976, payment of improvement charges is mandatory. In case of delayed payment, a penalty of 2% per month will be imposed on the outstanding amount. The authority has also warned that persistent defaulters may face seizure of property, followed by auction if dues remain unpaid.

This move comes in the backdrop of observations made in the Comptroller and Auditor General (CAG) report, which highlighted the failure of BDA to collect improvement charges over the years, leading to substantial revenue loss. Acting on these findings, the authority has now decided to strictly enforce the collection process.

The charges have been fixed based on the layout, calculated per square foot. The highest rate has been set for Arkavathi Layout at ₹336 per sq ft. Banashankari 6th Stage will attract a charge of ₹99 per sq ft, while Nadaprabhu Kempegowda Layout has been fixed at ₹74 per sq ft. Jnana Bharathi Layout will be charged ₹73 per sq ft, JP Nagar 9th Phase ₹48 per sq ft, Anjanapura Layout ₹37 per sq ft, and Sir M. Visvesvaraya Layout ₹15 per sq ft.

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Officials stated that the collected funds will be used to improve infrastructure, civic amenities, and overall development in these layouts. However, property owners have expressed concern, stating that the sudden enforcement of charges will severely impact household finances.