Landowners urge HUDCO to withhold funding for BBC project
BENGALURU: Farmers and site owners affected by the Bengaluru Business Corridor (BBC) project have urged Housing and Urban Development Corporation Limited (HUDCO) to withhold funding to the project, warning the project faces major legal, financial, and operational risks. In a letter dated December 8, the PRR Raitha Haagu Niveshanadharara Sangha (PRR farmer and site owners association) said the land acquisition scheme has lapsed, compensation is based on suppressed values, and excess land is being acquired without purpose, risking the project becoming a Non- performing Asset (NPA). The letter also notes that the Supreme Court has directed the Karnataka High Court to hear all PRR-related petitions as per law and on merits, exposing the project to full judicial scrutiny and increasing the risk of an adverse verdict. They also warned HUDCO of a major financial shock due to what they describe as suppressed land valuation. They allege that the guideline value for PRR lands was artificially lowered by over 60% in 2016, and that the Bangalore Development Authority (BDA) is now offering compensation based on this reduced value. Landowners, meanwhile, are demanding compensation under the Right to Fair Compensation and Transparency in Land Acquisition Act, 2013, which would peg compensation at market rates. Any such ruling, they argue, would push land costs that are already estimated at over Rs 27,000 crore are far beyond viability for a Public-private partnership (PPP) model. Operational risks were also highlighted, including BDAs plan to acquire more than 426 acres of what the group calls unnecessary land, such as outdated toll-plaza areas and land for BMTC and truck terminals for which other land banks already exist. The group said BDA has not submitted an updated Detailed Project Report (DPR) or an accurate list of land realignments to the High Court, raising concerns over transparency and feasibility. Urging HUDCO to exercise utmost caution, the signatories said any funding decision should be suspended until the High Court delivers a clear ruling on the validity of land acquisition, compensation under the LARR Act, and the question of excess land.
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