Wed Feb 25 12:21:38 UTC 2026: # Bengaluru Development Authority Pursues Decade-Old Betterment Fees, Faces Resistance

The Story:
The Bangalore Development Authority (BDA) is intensifying its efforts to collect long-overdue betterment charges, totaling over ₹3000 crore, from landowners in 22 layouts in Bengaluru. These charges stem from properties that were initially notified as part of layout schemes but later excluded. Despite attempts dating back to 2015, the BDA has struggled to recover these fees due to legal challenges. Now, armed with favorable court verdicts, the BDA is issuing public notices and threatening stern measures, including demolitions and property auctions, to compel payment.

Key Points:

  • The BDA is seeking to collect betterment charges from properties “left out” of layout schemes in 22 developed layouts.
  • The total amount owed is estimated to be over ₹3000 crore in principal alone, with penalties and interest potentially increasing the amount significantly.
  • Efforts to collect these fees began in 2015 under Chief Minister Siddaramaiah, targeting properties dropped from the Arkavathi and Nadaprabhu Kempegowda Layout schemes.
  • The BDA Act, 1976, mandates payment of betterment fees within 90 days of notification, with a 2% monthly penalty for delays.
  • Landowners are requesting a One Time Settlement (OTS) scheme similar to those offered for property tax and water bill arrears, where penalties and interest are waived.
  • Comptroller and Auditor General (CAG) reports have flagged the BDA‘s failure to collect these fees, and the issue is now before the Public Accounts Committee (PAC).
  • The BDA is using the funds to build the Bengaluru Business Corridor and a short tunnel and rotary flyover on the Hebbal – Mehkri circle stretch.

Key Takeaways:

  • The BDA‘s renewed push for betterment fee collection highlights the ongoing financial pressures faced by urban development authorities in Bengaluru.
  • The decade-long delay and legal challenges underscore the complexities of land acquisition and development in India.
  • The potential for demolitions and property auctions raises concerns about the impact on individual property owners.
  • The demand for an OTS scheme reflects a desire for a more equitable resolution that balances the BDA‘s financial needs with the concerns of landowners.
  • The BDA needs to find a method of collecting funds that is both timely and fair to property owners.

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