BBMP repays part of loan, takes back two pledged properties

The cash strapped Bruhat Bangalore Mahanagara Palike (BBMP), for the first time, has managed to take back two of its pledged properties, both historical buildings, after repaying a part of the loan taken from HUDCO more than five years ago.

On Saturday, the Mayo Hall Court Complex and Kempe Gowda Museum came back into the BBMP’s folds, with HUDCO officially handing over the property documents to Mayor B.N. Manjunath Reddy in the presence of Bengaluru Development Minister K.J. George.

BBMP had received a lot of flak when several landmarks were pledged with HUDCO to avail loans of Rs. 1,645.85 crore. It took back the two properties by handing over Rs. 435.94 crore to HUDCO.

Mr. George told reporters that BBMP had pledged these properties to avail loans in 2011-12 and 2012-13. “With a lot of stress being given on resource mobilisation, BBMP is getting more revenue than before. There are plans to take back the other pledged properties soon,” he said.

Stating that civic body’s financial credibility had improved, Mr. Reddy said the government would be urged to stand as guarantor for the remaining Rs. 1,209.91 crore loan. “This way, we hope to save some money on interest, which can be used for development works.”

BBMP is also going to move high interest loans amounting to Rs. 665.03 crore taken from nationalised banks to HUDCO where the interest rate is 10.15 per cent. “This way, we will be saving money that would have gone towards interest payment,” he added.