PRR landowners warn HUDCO: ‘Stop funding Bengaluru Business Corridor until legal issues are settled’

Farmers and site owners say the PRR land plan has lapsed, compensation is undervalued, and excess land acquisition could turn the project into a financial and legal crisis.

Farmers and site owners whose lands fall under the Bengaluru Business Corridor (BBC), earlier known as the Peripheral Ring Road (PRR) project, have formally appealed to Housing and Urban Development Corporation Limited (HUDCO) to stop financing the project until all pending legal issues are resolved.

In a detailed letter dated December 8, the PRR Raitha Haagu Niveshanadharara Sangha said the land acquisition process being used by the Bangalore Development Authority (BDA) is no longer valid. They argue that the original acquisition scheme has already lapsed and that compensation is being offered at rates they claim are based on artificially reduced guideline values.

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According to the association, the guideline value for PRR lands was lowered by more than 60% in 2016, and BDA continues to calculate compensation using these figures. Landowners insist compensation must be given under the Right to Fair Compensation and Transparency in Land Acquisition Act, 2013, which mandates payment at market value.

They say that if the courts enforce the 2013 Act, the total land cost, already estimated above ₹27,000 crore, will become too high for a Public-Private Partnership (PPP) model, potentially making the project financially unviable.

The letter also highlights that the Supreme Court has directed the Karnataka High Court to examine all PRR-related petitions “as per law and on merits.”

Landowners say this exposes the entire project to full judicial scrutiny and increases the possibility of an adverse ruling, putting HUDCO’s investment at serious risk.

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Apart from legal and financial issues, the group pointed out operational problems. They claim BDA is planning to acquire over 426 acres of excess land, including outdated toll-plaza areas, and lands for BMTC and truck terminals, despite other land banks already being available.

They warn this could lead to wasteful expenditure and further complications.

The association also noted that BDA has not placed an updated Detailed Project Report (DPR) or revised land realignment lists before the High Court. They say this lack of transparency makes it difficult to assess whether the project is feasible or aligned with current ground realities.

Call for HUDCO to wait for court verdict

The signatories have requested HUDCO to “exercise utmost caution” and delay any funding decision until the High Court clearly rules on three critical issues:
• Whether land acquisition is legally valid
• Whether compensation should follow the LARR Act, 2013
• Whether excess land is being acquired

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They warned that ignoring these issues could lead to the project becoming a Non-Performing Asset (NPA), creating major financial losses.