Property on ring road? Pay fee

Property on ring road? Pay fee
The Times of India

Bangalore: If the value of your property along ring road rockets overnight, then you’ll not be the only one reaping the benefits. You will have to pay a levy to the authority in the form of ‘impact fee’. The Bangalore Development Authority, which is giving final touches to the Peripheral Ring Road (PRR) project by going in for final notification, will collect a one-time development fee from the properties abutting the ring road. The collection of such a fee has legal sanction as it is in the BDA Act as well as Karnataka Town and Country Planning Act.
The BDA Board has to work out the parameters for levying the fee — the distance at which the properties have to be situated from the road, escalation in the market value, rates for residential and commercial properties and mode of payment.
A minimum of Rs 30 per sqft is proposed which varies from place to place and property to property. Also the Floor Area Ratio and the Transfer of Development Rights aspects will be looked into while finalising the rates.
“When the property value escalates because of a ring road passing close to it, why shouldn’t the authorities collect levy from the owners for benefits gained,’’ asked BDA commissioner M K Shankarlinge Gowda.
In the case of outer ring road, not much levy could be collected as the road passed through many BDA-developed layouts, Gowda said.
The BDA, which is estimated to spend Rs 3,500 crore on the 117-km PRR, hopes to raise Rs 1,000 crore from impact fee.
ROAD MAP
Work on peripheral ring road to begin in May; nearly 3,530 acres of land required for PRR BDA has excluded built-up structures, villages, tanks and forest land from notification 8-lane, toll-free PRR will be 3 to 5 km away from existing outer ring road