Firoz.T.Totanawala The Bangalore Metro Reporter THE BACK DOOR FORMULA BETTERMENT CHARGES-BBMP’S ALTERNATE TO AKRAMA-SAKRAMA

BY. FIROZ.T.TOTANAWALA 

 THE BANGALORE METRO REPORTER 

 THE BACK DOOR FORMULA 

 BETTERMENT CHARGES-BBMP’S ALTERNATE TO AKRAMA-SAKRAMA 

 The BBMP in its budget which was placed before the council two months back had estimated revenue of Rs. 800 crores from the Akrama-Sakrama scheme. This estimate was projected despite the fact that the Governor had refused to sign the Bill. Eventually, there seems to be no chance of the Akrama-Sakrama Bill becoming an act in the near future and this has made a hole in the BBMP’s pocket. Whatsoever, the BBMP has nothing to worry at all. So what if the Governor refuses to sign the Akrama-Sakrama Bill? So what if the High Court which had earlier stayed the Akrama-Sakrama scheme in 2008 finally strikes down the same? The BBMP has the answer. Just ignore the Akrama-Sakrama scheme itself and bring in another scheme of Betterment Charges to regularize the revenue properties through a resolution in the BBMP council. 

 AKRAMA-SAKRAMA STORY

 It may be recalled that Akrama-Sakarama Bill was passed in the Special Session of the Legislature at Belgaum in 2007 when H.D KumaraSwamy was the Chief Minister. The Bill was passed without any discussions. The levy of the Akrama-Sakrama charges for violation of Karnataka Town and Country Planning Act, Karnataka Land Reforms act, Karnataka Land Revenue Act, etc, was left to the official’s committee. And the bureaucrats as a rule, insensitive towards the real problem, fixed abnormal charges for regularization of unauthorized and revenue properties. This was fiercely protested by the public and also the political parties who approved the bill in the Assembly. Some even challenged it in the High Court as well. 

 ENCASHING THE BOOK 

 Such was the arrogance of the bureaucrats that the then BBMP Commissioner Mr. Subramanya even issued stern ads “Now or Never” and threatened disconnection of water and electricity connections, if the properties were not regularized by March 2008. The BBMP also made a big killing by selling the Akrama-Sakrama Book at the rate of Rs.100 per Book. More than one lakh booklets were sold and if the High Court had not intervened, the sale would have touched 6 to 7 lakhs as it was compulsory to purchase the booklet which also contained the application forms. 

 SUPPRESSING THE POLITICS

 The High Court which stayed the scheme asked the Government to find out if relief can be given to the poor. At that time, the state was under President’s rule and the Governor was not prepared to take any major decision. Thus, the scheme remained in cold storage. In May 2008, the BJP came to power and it constituted a cabinet Sub Committee under the Chairmanship of R. Ashoka, the Transport Minister. The committee made some recommendations and reduced the regularization charges on small properties and the matter rested there. Thereafter, for the two following years, the BJP Government did nothing in the matter, except on the eve of BBMP election earlier this year. The Government woke up and pushed for the Bill and sent the Akrama-Sakrama Scheme to the Governor for issuing an ordinance. However, the Governor refused to sign it so as to avoid BJP enjoying any political advantage of the same in the then elections. The Governor sent back the same to the Government advising it to introduce the bill in the assembly for threadbare discussions as many serious aspects are involved. 

 GONE WITH THE WIND

 Let us also recollect that the BJP then put forth the Akrama-Sakrama bill in the assembly and hurriedly passed it in a matter of few seconds without any discussions. This was done so while the opposition was on a dharna against the Government in the wake of Mining scam. 

 ESCALATING FIGURES

 Now, let us understand the BBMP’s proposal for collection of betterment charges and registration of Khatas. The BBMP in its 8000 plus crores budget for 2010-2011 had estimated Rs. 800 crores revenue from the Akrama-Sakrama scheme taking for granted the implementation of the act. The officials who prepared the Budget in March for the same year (as the elected body was not constituted by then) had limited the Budget to 4500 crores and there was no estimate of revenue from the Akrama-Sakrama Scheme. However, the BBMP placed the budget in the council in the month of august that is almost after five months and also increased it to Rs. 8000 crore plus. Here, it also showed the receipt of Rs. 800 crore from Akrama-Sakrama scheme, in spite of the fact that the same is not yet approved by the Governor. 

 INDUCING OFFER!

 But the BBMP has to raise funds for its maintenance and must work out an effective alternative. The ‘intelligent’ leaders of BJP thus hit upon a novel idea of collecting Betterment Charges from the revenue properties and issue khatas to the properties? The modus operandi here is very simple. Lakhs of revenue properties in the newly added areas of BBMP are using the amenities provided by the BBMP. The betterment charges can thus be collected from the owners of these properties in lieu of using the amenities like roads, water, parks etc., and offering them khata of their properties is an enough reason to induce them for the same. In short, collect Betterment charges from the owners and give them the khatas for their revenue properties. This is the essence of the betterment charges scheme!

 THE KHATA GAME! 

 Legally, the betterment charges are different from regularization charges under Akrama-Sakrama Scheme. The betterment charges are collected for using the amenities provided by the BBMP while the regularization charges are collected for compounding violations of various acts. At the end of the day, khatas are issued under both the schemes, be it Betterment Charges or Akrama-Sakrama Scheme and the net result is the same. The revenue property gets legal status by receiving the khata from the BBMP. 

 COMPARISON

 In a way, the betterment charges scheme overrides the Akrama-Sakrama Scheme which is yet to become a reality. The betterment charges proposed by BBMP are far less compared to regularization charges under Akrama-Sakrama. The betterment charges fixed for a 30x40 site (never mind the buildings) is Rs 150 per square meter which comes to less than Rs. 15 per sq ft. And the maximum charge is Rs. 400 per sq. meter for properties above 6000 sq ft. However, the stipulated regularization charges under Akrama-Sakrama scheme was a minimum of Rs 200 per sq ft. based on the market value of the property which includes site and the building. 

 In a nutshell, the betterment charge scheme is very cheap and affordable. And the owners get legal status to their revenue properties by getting the khata from BBMP. In the Akrama-Sakrama scheme too, the end result is the registration of khata after paying fines under Karnataka Revenue or lands reforms or Town and Country Planning or Municipality acts, in addition to regularization charges. 

 Once the khata is registered by BBMP after collecting betterment charges, the matter ends there. The BBMP can thereafter collect only property taxes. This is not a new scheme but was earlier already implemented in BMP areas. Even the BDA had regularized many revenue layouts under this scheme. But the same was dropped after it became known that neither the BDA nor the BMP have powers to collect development charges as only the Revenue Department has the powers to levy the charges. It was for this purpose that the Akrama-Sakrama scheme was stipulated by amending all the relevant Acts as a ‘one time’ settlement. 

 As things stands now, the revenue properties can only be regularized under Akrama-Sakrama scheme and that too, as a ‘one time’ scheme. The BBMP’s regularization scheme under the guise of betterment charges will not pass the scrutiny of law. 

 READY ALTERNATIVE

 Arguably, the BBMP is simply bringing the Akrama-Sakrama scheme through the back door camouflaged as Betterment charges. Assuming that the Akrama-Sakrama scheme gets scrapped in the legal or political tussle, the BBMP still has an alternative to regularize the revenue properties and effect receipts through collecting betterment charges.