By Express News Service BENGALURU: Recent collation of data by Bruhat Bengaluru Mahanagara Palike (BBMP) has seen a drop in the issue of plan sanctions for high rise buildings in North and South Bengaluru, but this has had no effect on the revenue generation by the officials. In fact, there is a marked increase. The BBMP has found that while there has been a drop by more than 50% in plan sanctions compared to last year, there has been a revenue increase by the same percentage. Explaining the disparity, a BBMP official said, “There has been a reduction in the applications seeking plan sanction and BBMP issuing commencement certificates and occupancy certificates. This is because of various reasons such as the Real Estate Regulatory Authority (RERA), which has made rules stringent and this has seen builders adhering to a set timeline. It could also be because of stringent laws being imposed by the BBMP to bring in more transparency. But the increase in the revenue is because BBMP has connected its tax collection directly to the guidance value.” So each time there is a revision in the guidance value, there is an increase in the fee collected, which automatically increases BBMP’s revenue. The guidance values fixed by the Stamps and Registration department, is based on surveys and only shows an upward trend and increase in land prices in the city. “Since BBMP revised its fee collection rules and connected it directly to guidance value, there are no losses,” the official added. BBMP officials said this has invoked a mixed response from realtors.

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