Compensation dispute slows Bengaluru Business Corridor land acquisition

BBC land acquisition faces hurdles as old awards clash with soaring land values; BDA offers negotiated payouts, plots, TDR, FAR, and seeks faster tendering

The ambitious Bengaluru Business Corridor (BBC), earlier known as the Peripheral Ring Road, has run into a major hurdle over land compensation. The project, notified in 2008–09, initially carried an award of ₹20–30 lakh per acre for 948 acres and 14.5 guntas, part of the 1,810 acres earmarked in phase one. However, nearly 15 years of delay due to farmer opposition has left acquisition incomplete, and today’s soaring land values have created a sharp mismatch with the old award.

With the Congress government now prioritizing the corridor as a key decongestion project, the Bengaluru Development Authority (BDA) has revived acquisition efforts. Officials note that the earlier award cannot be legally withdrawn, meaning any alternate package must be offered only on an ex‑gratia basis, leaving the final choice to landowners.

Land prices in the Varthur–Gunjur belt and other areas have surged dramatically, with demands ranging between ₹15 crore and ₹40 crore per acre. To address this, BDA has introduced a negotiated acquisition framework, offering payouts up to ₹15.6 crore per acre in select villages. Consent has already been secured for nearly 100 acres, marking progress after years of stalemate.

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Farmers are being given five compensation options: cash, residential plots, commercial plots, transferable development rights (TDR), or floor area ratio (FAR). Village‑wise details of cash compensation, TDR, and FAR have been published on the BDA website, and four district collectors have been appointed to accelerate the process.

Officials expect many landowners to prefer commercial sites along the corridor, with current uptake reported at a 65:35 ratio in favour of commercial plots, translating to 8,385 sq ft per acre, often combined with TDR benefits.

Meanwhile, a revised Detailed Project Report (DPR) is under preparation. The BDA has requested government approval to float tenders once 60% of land acquisition is complete, instead of the existing 80% requirement, in order to fast‑track implementation.

The outcome of these negotiations will determine whether the BBC can finally move forward after years of delay, balancing farmer interests with the city’s urgent need for infrastructure to ease traffic congestion.

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