Metro: building owners to get separate compensation

Metro: building owners to get separate compensation

Govind D. Belgaumkar

An order in this regard has been passed by BMRCL

Services of select valuers to be utilised to determine compensation
Relief ranging from Rs. 1,200 to Rs. 12,000 for land acquired already announced

BANGALORE: In addition to the “fair” market rates and a 30 per cent bonanza for the land lost, property owners who lose buildings for the Metro Rail will get a separate compensation package.

Managing Director of Bangalore Metro Rail Corporation Ltd. (BMRCL) V. Madhu passed an order on June 8 accepting the recommendations of a committee constituted by the State Government to study compensation to be offered for buildings. Mr. Madhu modified some provisions of the order on June 13.

The BMRCL has adopted the rates and the guidelines issued by the Central Board of Direct Taxes (CBTD) to determine their replacement costs on plinth area (actual area occupied) basis. The BMRCL will use the services of select valuers to determine the compensation.

There is more. The BMRCL will further compensate for the “special items or superior specifications of the buildings within or outside plinth areas.”
Consent award

All these are applicable only to the owners who go for “consent award.” Compensation can be availed in two ways: one, using the award/compensation made unilaterally by the acquisition officer. The owner may, alternatively, go for the second option known as consent award. This is the amount he negotiates with the building acquisition officer. Once the amount is agreed upon, he cannot move the courts for enhancement of the amount.

Those who lose only a part of their buildings will get compensation for the demolished portion. They will also get an additional compensation to meet the cost incurred owing to demolition and the cost of residents’ rehabilitation for safety reasons (during demolition).

Furthermore, the BMRCL proposes to pay for the restoration of utility services — water, sewer, power and telephone lines. BMRCL would offer normal interest rates for the delay in payment of compensation on the replacement cost.

The BMRCL has already announced compensation ranging from Rs. 1,200 to Rs. 12,000 for land acquired (without taking into account the building on it). The 30 per cent additional compensation for inconvenience caused for losing land will now be extended to the loss of buildings as well. In the case of buildings, it will be offered on the market value of the building or the cost of its reproduction minus depreciation calculated from the date of completion of the building to the date of award or the date of BMRCL taking the possession of the property.

The BMRCL found that the rates fixed by the Department of Stamps and Registration did not “reflect fair market price”. Applying those rates would have led to litigation and objections in almost all the cases. Hence the State Government was asked to constitute the committee. The committee was headed by the Chief Engineer (Construction and Buildings), PWD.