Bruhat Bengaluru Mahanagara Palike (BBMP) has officially launched revised rental rates for commercial shops at the historic Krishna Rajendra (KR) Market after a 12-year legal struggle at the Karnataka High Court, a move that will allow BBMP to force a long-standing rent change.
The revised rental structure has been approved and officially notified by BBMP Central Zone Commissioner G. Jagadeesh. With this order in place, all tenants in KR Market must pay rent at the new rates.
A Long-Pending Rent Revision
KR Market, one of Bengaluru’s oldest and busiest wholesale markets, comprises about 7.96 acres of land. 3.09 acres of that land houses the main market complex with nearly 1,269 commercial shops of varying sizes.
In 2014, shop owners and tenants were paying a rent rate of ₹25 per square foot—a rate that remained the same for years despite the market’s prime commercial location in the heart of Bengaluru.
With the gap between market price and rent, BBMP initiated a scientific valuation process in 2014. A Chartered Engineer and Registered Valuer was appointed to assess the commercial value of the property. The valuation report recommended an average rent of ₹98 per square foot.
But the proposal was vehemently opposed by traders and merchant associations, who challenged the decision before the Karnataka High Court. Legal proceedings took place for well over a decade, delaying the implementation of the new rates.
High Court clears the way
The Karnataka High Court has now disposed of the case, and BBMP has been granted the power to determine and revise rental rates through its Commissioner. Commissioner G. Jagadeesh has now brought out the revised rent notification, which is a relief after years of uncertainty.
Unlike the previous proposal, the new policy adopts a differentiated pricing model based on the commercial importance and customer footfall of each floor within the market.
Revised Rental Rates
With the new rental policy, the monthly rent per square foot has been fixed as follows:
- Upper Basement: ₹122.50 per sq.
- ft. Ground Floor: ₹122.50 per sq.
- ft. First Floor: ₹83.50 per sq.
- ft. Second Floor: ₹68.60 per sq. ft.
BBMP says the revised structure reflects the varying commercial value of different sections of the market and has been designed using scientific valuation methods.
Loss of revenue to BBMP
The civic body has been losing a lot of revenue in recent years owing to outdated rental rates and widespread non-payment of rent, officials have said.
According to BBMP sources, several tenants have accrued significant rent arrears over the years. Many original owners illegally sublet their shops to third parties and obtained much higher rents, while the civic body was still receiving little or no income, they claim.
The administration is optimistic that this new rental policy will significantly increase revenue production, and transparency regarding shop allocation and rental management will be much better.
Strict Action Against Defaulters
Following the implementation of the new rental order, BBMP has initiated a detailed survey of all commercial establishments in KR Market.
Accordingly, they will send notices to tenants whose rent dues are pending payment under the new rates and will be notified by the owners to pay up on the new rates by the deadline.
And it has also warned that shops found to have been illegally subleased or occupied in violation of tenancy rules could be strongly targeted. If any such action is taken against the shops, it can include the cancellation of tenancy rights, seizure of premises, and suspension of the licenses for the sale of the business, where applicable.
Boost for Market Administration
BBMP believes the new rental policy will yield substantial monthly revenue that can be reinvested into KR Market’s infrastructure, sanitation, public facilities, and maintenance.
The decision will increase financial accountability and ensure that one of Bengaluru's most important commercial hubs is better managed. The new rents might have the effect of increasing operational costs for traders, but the city says the new structure is based on what is truly commercial in nature of the property and will be essential for sustainable market administration.
