Govt releases new rules to streamline BBMP property leasing

The state government has notified the Bruhat Bengaluru Mahanagara Palike (Management of Estates) Rules, 2024 to streamline management of around 7,000 properties owned by the civic body.

The new regulations establish obligations and require city authorities to collect a deposit in advance and monthly rental fees for properties.

The statute states that BBMP can lease its properties on a minimum one-time deposit to government institutions or non-profit organisations helping the elderly, poor or disabled persons, or for religious or other categories of purposes, after obtaining prior permission from the government.

The BBMP standing committee has the power to enter into lease agreements for a period of up to five years. The council can lease properties for periods exceeding five years but not exceeding 15 years. Lease agreements for periods exceeding 15 years and up to 30 years require the approval of the state government.

The regulations also allow for one extension of the lease agreement after its expiry date.

BBMP has the right to lease its properties through public auction, provided the civic body collects an interest-free deposit from the successful bidder along with one month’s rent. “The one-time deposit (OTD) is refundable to the tenant without interest upon vacating the property.”

According to the rules, one eligible bidder can bid on multiple properties, but subletting is not allowed. The rules also specify a minimum reservation price for a single deposit.