- By Shibra Arshad
- Mon, 20 Oct 2025 08:28 PM (IST)
- Source:JND
Bengaluru Business Corridor: Karnataka's much awaited and long-delayed Peripheral Ring Road (PRR), which has been rebranded as Bengaluru Business Corridor (BBC) apeared to be hiting another roadblock as landowners have slamed 35 per cent land return clause.
The project has allegedly fallen into pit of controverty after government's new order issued on October 17, which lays out new compensation and development framework.
The project will be implemented through Special Purpose Vehicle (SPV) created under the BDA Act, instead of being handled directly by the Bengaluru Development Authority. Landowners say that this system reduces the accountibility and complicates the grievance resolution process.
According to the order the Bengaluru Business Corridor will invoke SC's verdict exempting fair compensation in land acquisition. The order confirms that the project will implement BDA Act, 1976 for land acquisition, invoking 2022 Supreme Court's verdict that exempts the project from the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (LARR) Act, 2013.
The order, hence, has added to the concerns of property owners, whose lands have been frozen for nearly two decades as they will not be paid enhanced compensation, rehabilitation benefits or a lapse clause.
35% Land Return Clause Adds To Landowners's Concern
Landowners are seeking clearer details on the government's compensation package, which includes options for cash, Transferable Development Rights, Floor Area Ratio, or 35 per cent developed land, as they are currently unclear about the location, valuation, and timelines associated with these options.
“If we lose 65 per cent of our land, what guarantee do we have that the remaining 35 per cent will hold the same value?” as farmer was quoting as asking by Hindustan Times.
Property owners near the Peripheral Ring Road (PRR) project are facing an additional tax burden, known as the Betterment Tax, due to a 500-meter "impact zone" on both sides of the PRR. This levy, as per Section 20 of the BDA Act, is imposed on top of the land acquisition, which many landowners feel is unfair and amounts to a 'double penalty'.
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Landowners Demand MPC Review
The Cabinet-approved order has sparked criticism for lacking public consultation and violating constitutional norms, specifically Articles 300A and 243ZE, which safeguard property rights and require participatory urban planning.
Landowners are now calling for a review by the Metropolitan Planning Committee (MPC), a fair-market compensation model, and inclusion in the project's equity structure.
