Pledge leased properties: Corporator

Bangalore: JD (S) floor leader in BBMP R Prakash has pointed out that while the civic agency was reeling under financial crisis, some private individuals and organisations are making huge profits by misusing the buildings leased to them by Palike.

The civic body has hardly made any efforts to reclaim these properties, he added.

Addressing a press conference here Prakash said the BBMP has leased hundreds of buildings for a duration of 99 years, at a throwaway price of Re 1 per sq feet per annum. It is unfortunate that the lessees are violating the contract entered with the BBMP and sub-leasing BBMP properties to make profit.

He pointed out that Bhagwan Mahaveer Jain Trust, a charitable institute, is making huge profits.

“In the year 1976, BBMP has signed an agreement with the trust and the 99-year-old agreement ends in 2075. How will the BBMP earn revenue? Besides, the trust has sought for an NOC to raise loans against the hospital building in order to construct a new building. They want to raise a loan of Rs 55 crore. How can a charitable trust be allowed to take loans? It is better BBMP pledge these buildings and generate revenue,” he suggested. The trust is also evading service tax to the BBMP, he added.

The leased properties can fetch required amount of loan even though they are occupied by the lessees, he suggested.

Prakash pointed out that the BBMP has availed a loan of Rs. 1,676.85 crore, of which HUDCO has disbursed Rs 1,545.85 crore. Nine BBMP jewels have been pledged to various financial institutions.

Prakash also expressed his displeasure about the lackadaisical attitude of BBMP commissioner Lakshminarayan and Chief Minister Siddaramiah.

“The commissioner has defended himself that it is in his capacity to decide to pledge buildings. In such a case, his powers must be withdrawn. The Chief Minister has also acted irresponsibly. No surprise if the banks which have lent loans to BBMP lock out these buildings some day,” he said.