Metro: property losers to get 30 per cent more than market value

Metro: property losers to get 30 per cent more than market value

Staff Reporter

# The value of hardships varies from Rs. 24,000 to Rs. 6.5 lakh
# Tenants will be paid shifting charges and inconvenience allowance

BANGALORE: The 1,500-odd families which will lose their residential or commercial property for the proposed metro rail project will get much more than the market value for them.

Bangalore Metro Rail Corporation Managing Director V. Madhu said on Tuesday that the families would get an additional 30 per cent for loss of livelihood and common resources such as schools, hospitals and religious places.

The package, details of which have been published in the website (bmrc.co.in), is based on the principle that the affected persons should be enabled to replace the assets lost, receive for a short while (until they had the time to resettle), an economic assistance, meet the extent of costs they would incur in shifting residences and commercial establishments.

Starting from Rs. 24,000, the value of hardships can go up to over Rs. 6.5 lakh in some cases. And it is over and above the market value that the owners get.

For example, the lowest amount of Rs. 24,000 is for the owners losing land and own house partially. This amount is called inconvenience allowance. The owners of lands and commercial buildings, measuring over 1,500 sq ft will get about Rs. 6.8 lakh in addition to the market value. This includes Rs. 3.6 lakh for re-establishing the business (at the rate of Rs. 240 a sq ft.), Rs. 20,000 towards shifting charges, Rs. 2 lakh rental compensation and Rs. 1 lakh compensate business losses.

According to the details worked out by the BMRC, the owners of land measuring 1,000 sq ft. with a self-occupied house will get a minimum of Rs. 1 lakh in addition to the market value. This is for shifting, mitigating inconvenience and transitional losses. The transitional cost, paid on the basis of area lost, is to provide for the rentals and deposit costs during the period of transition. The charges go up as the area lost increases.

Tenants too benefit

The tenants also get compensation. If only one family has occupied the rented out area, it will get Rs. 27,500 towards shifting charges and inconvenience allowance. If there is more than one occupant the total compensation goes up to 42,500.

In the case of commercial buildings, tenants get up to Rs. 1.15 lakh if the business establishment is paying sales tax or VAT of more than Rs. 15,001. This includes compensation for the loss of business. The tenants will be required to show certified copy of documents of VAT/ST for the 12 months of the previous year or one annual return filed before the Commercial Tax authorities. Those who cannot produce the documents will have to accept the fixed amount of Rs. 30,000 towards shifting and business losses. The business loss is to be compensated by giving Rs. 50,000 to Rs. 1 lakh depending on the VAT/ST figures of the establishments.

The rental compensation too increases as the area lost increases. For example, those losing 1,000 sq ft of rented residential area get a compensation of Rs. 60,000.