Corporator has quick-fix solution for BBMP’s cash woes

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The financial position of the BBMP might be precarious, but it has potential to pull itself out of the rut and earn at least Rs 4,500 crore from property tax.

This is was revealed by Yediyur corporator N.R. Ramesh who has suggested a number of avenues to make the BBMP-cash rich and improve civic amenities of the city without depending on state government for funds.

“The BBMP need not crib for funds. By bringing all kinds of properties like residential, commercial, industrial, hotels, marriage halls, apartments and tech parks under the tax net, the BBMP can pull itself from financial problems; it need not pledge BBMP properties for availing loans,” Mr Ramesh said.

It may be recalled that the BBMP has pledged the KR Market building to avail loans and two other structures, the utility building and Jayanagar market will be pledged to avail additional loans from HUDCO.

The BBMP’s outstanding loans of Rs 3,000 crore can be repaid in just one year. The BBMP can also fund other urban local bodies for the development of amenities, Mr Ramesh added.

Mr Ramesh obtained information and revealed that 335 builders were registered under CREDAI and BRAI, the two builders associations in the city. The total built up area from the apartments itself is over 78 crore square feet.

The apartments which are under construction will throw open 21 lakh (square feet?? GIta). Mr Ramesh also provided details on tech parks in the city and suggested that they must be surveyed through outsourced agencies to bring them under the tax net.

A small exercise on the tech parks in Mahadevapura and Yelahanka zones fetched over Rs 40 crore additional revenue to the BBMP.

Unfortunately, he said that the BBMP revenue department has details on non-assessed apartments and not on those which are assessed.

BBMP records claim that it is yet to assess 9,458 residential apartments and bring them under the tax net, he added.

The city houses 8,000 apartment buildings and each apartment has over 100 flats. The Mumbai Corporation has booked 781 cases against leading builders between 2005 and 2011 for illegal structures.

Unfortunately, the BBMP has not booked even a single case though illegal structures are being constructed right under its nose, Mr Ramesh added.