By Firoz.T.Totanawala
The Bangalore Metro Reporter
15th November 2010 Issue-
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.
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