Pricing of the railway land acquired by Bangalore Metro Rail Corporation Limited (BMRCL) is facing endless issues. The BMRCL refuses to pay the compensation fixed by a committee formed by the Union Urban Development Ministry for three land parcels at Majestic belonging to the Railways.
Railway officials say that BMRCL authorities created a ruckus in a recent meeting held between the representatives of the two organisations. The new demand of BMRCL is to assess the three land parcels at Majestic under the industrial land valuation category. Which means the cost of the land will drastically decline.
So far, BMRCL has paid Rs 115 crore to the Railways. According to the earlier calculations made by the Railways, BMRCL was supposed to pay Rs 175 crore. However, later the amount was recalculated and BMRCL was directed to pay Rs 145 crore to the Railways as compensation. BMRCL found the rates too high and, with the intervention of the Urban Development Ministry, it was sought to form a committee to decide on the final compensation rate to be paid by BMRCL.
“A committee to decide on the land pricing recently met to take a decision. The Joint Director of the Ministry of Railways who is one of the committee members said that the compensation to be made for two land parcels at STC and Platform Road will be calculated as per commercial value. While at MG Colony, the land cost will be calculated as per residential value. The land at STC and Platform Road area is situated in a densely populated commercial zone which is why the decision was taken. However, BMRCL refused to go by it. They have stated that they will only agree if the land cost is calculated as per industrial value,” said a senior Railway official SWR.
If the Railways agree to consider all the three properties under the industrial category, BMRCL will have to pay a meagre amount of Rs 57 crore for the high-valued land parcels. “The meeting was adjourned as talks on compensation did not reach a conclusion. However, we cannot halt metro work at the three land parcels as the Ministry of Urban Development has instructed us to accord priority to Metro work on railway land,” said the official.