Bengaluru Business Corridor Faces Land Compensation Hurdles as Old Awards Clash with Soaring Values
Bengaluru Business Corridor Land Compensation Issues Amid Price Surge

The Bengaluru Business Corridor project has hit a new snag. Land compensation issues are causing fresh complications. A decades-old award is now clashing with sharply rising land values.

Old Award Creates Legal Impasse

The Bangalore Development Authority originally notified land for this project back in 2008-09. At that time, they passed a compensation award. This award set rates between Rs 20 lakh and Rs 30 lakh per acre. It covered 948 acres and 14.5 guntas of land.

This land was part of the first phase notification totaling 1,810 acres. However, the project stalled for nearly fifteen years. Farmers' opposition left the acquisition process incomplete.

Now the Congress government views this corridor as a key decongestion project. Land acquisition has gained fresh momentum. But the old award from 2008-09 has created a legal impasse.

"Since the award was passed, it cannot be withdrawn as per law," an official explained. "Alternate schemes of compensation can be considered only as ex-gratia. The final decision must be left to farmers."

Officials Fear Court Challenges

Officials express concern about potential court cases. Farmers covered by the 2008-09 award may approach courts. They could seek higher cash compensation. Such legal challenges might strain project finances significantly.

Meanwhile, land prices have surged dramatically across Bengaluru. Current demands range from Rs 15 crore to Rs 40 crore per acre. This is especially true in the Varthur and Gunjur belt areas.

Negotiated Compensation Framework

Against this challenging backdrop, BDA has begun acquiring land through negotiated compensation. They are using a new framework for these negotiations. Under this framework, they offer payouts of up to Rs 15.6 crore per acre in select villages.

Several farmers have already given their consent. This has prompted BDA to initiate acquisition of nearly 100 acres. The authority is moving ahead with these negotiated payouts despite the complications.

Five Compensation Options Available

Farmers receive five different compensation options. They can choose cash payments. Alternatively, they can opt for residential plots. Commercial plots represent another choice. Transferable development rights or floor area ratio complete the options.

BDA has published village-wise details on their website. These details cover negotiated cash compensation amounts. They also include information about TDR and FAR options.

Expedited Acquisition Process

Four district collectors have received special appointments. Their task is to expedite the land acquisition process. Acquisition begins immediately upon receipt of consent letters from landowners.

LK Atheeq serves as BCC chairman. He shared the government's expectations. "We expect most landowners to opt for the alternate ex-gratia package," Atheeq stated.

He addressed other land acquisition issues too. These issues will be handled alongside project development packages. Many landowners are choosing commercial sites along the corridor.

They are opting for these sites in a 65:35 ratio. This translates to 8,385 square feet per acre. These commercial choices come with transferable development rights.

Revised Project Report and Tender Process

A revised detailed project report is currently under preparation. Existing rules govern the tender process. Tenders can only be floated after completing eighty percent of land acquisition.

BDA has written to the government seeking special permission. They want to call tenders after completing just sixty percent of acquisition. This would accelerate the project timeline significantly.

The Bengaluru Business Corridor project faces complex challenges. Old compensation awards conflict with current market realities. Negotiated settlements offer a potential path forward. But legal uncertainties and financial pressures remain significant hurdles.