The BBMP has prepared a three-tier system for collecting betterment charges from revenue site owners to convert their B Khatas to A Khatas.

Collection of betterment charges were stopped since 2007. Now, the BBMP has decided to collect Rs 344 per sq meter from revenue sites falling under old CMC and TMC areas, Rs 430 per sq meter from the revenue sites which come under erstwhile 111 villages and gram panchayats and Rs 100 per sq meter from the site owners falling in the erstwhile BMP’s 100 wards.

BBMP commissioner M Lakshminarayana confirmed to Bangalore Mirror that a note has been sent to the taxation and finance standing committee to take a final call on betterment charges. ”We have sent a proposal, but they need to fix the criteria. Once they decide, then it will be sent to council,” he said.

In 2012, the BBMP had decided to collect Rs 550 per sq meter betterment charges across its limits, which was challenged by a few city-based builders in the Karnataka High Court. The court had cancelled BBMP’s order and directed fixing of scientific rates. It had also asked the BBMP to consider partial payment or payments in installment for betterment charges from the property owners.

A committee formed by the commissioner has met around seven times in the past six months. Its report said: “There are neither developmental activities nor basic facilities in the newly added village panchayats which now fall under the civic agency. It is BBMP’s responsibility to provide proper roads, drains, storm water drains, street lights and other basic infrastructure. The chief engineers were asked to provide a report for overall developmental cost in sq meters. Already, around 40 to 50 per cent developmental activities have been completed in panchayat areas, but for overall development of the locality, engineers have recommended that we collect Rs 430 per sq meter betterment charges.”

Aound 60 per cent of the developmental activities are under progress in the erstwhile CMC and TMC areas and the engineers have recommended collecting Rs 344 per sq meter as betterment charges. The rates differ when it comes to the old 100 wards of the BBMP. The property owners in the old 225 sq meter jurisdiction will need to pay Rs 100 per sq meter.

It has also recommended that the property owners be allowed to pay the betterment charges in 4 to 5 installments and within a year’s time. If a owner fails to pay the betterment charges within one year, then he will be charged 1.5 per cent monthly penalty for delay in payments.