BBMP has implemented the long-pending KR Market shop rent revision after 12 years following a High Court ruling. Shop tenants must now pay revised rents and applicable interest from 2014, boosting civic revenue and clearing years of pending dues.
Shopkeepers at Bengaluru’s iconic KR Market, one of the city’s busiest wholesale trading hubs, will now have to pay significantly higher rents after a decade-long legal dispute over the rent revision came to an end. The Bruhat Bengaluru Mahanagara Palike (BBMP) has implemented a long-pending order to revise rents for shops in the market complex following a recent High Court ruling. The move is expected to substantially increase the civic body’s revenue while enabling it to recover years of unpaid rent along with applicable interest.
On Thursday, Central City Corporation Commissioner G Jagadeesh issued an order implementing the revised rent structure. The decision follows the High Court’s disposal of a petition filed by traders challenging the proposed rent hike. With the legal hurdle now cleared, all shop tenants will be required to pay the revised rents.
Rent Revision Pending Since 2014
The KR Market complex spans 7.96 acres and houses 1,269 shops of varying sizes across a 3.09-acre built-up area.
Until 2014, shopkeepers were paying just ₹25 per sq. ft. in rent. To revise the rates scientifically, the then BBMP Commissioner appointed a Chartered Engineer and Registered Valuer to assess the market rental value.
In October 2014, the valuer submitted a report recommending an average rent of ₹98 per sq. ft. However, traders challenged the proposal before the High Court, delaying its implementation for nearly a decade.
The High Court has now ruled that the Commissioner has the authority to determine the rent, paving the way for the implementation of the revised rates.
BBMP Expects Higher Revenue
According to BBMP officials, several traders have failed to pay rent for years. In some cases, allottees allegedly sublet their shops to third parties and earned substantial rental income while the civic body received little or no revenue.
With the revised rent structure now coming into effect, BBMP expects to recover outstanding dues along with applicable interest, potentially generating crores of rupees in additional revenue.
Revised Rent Rates (Per Sq. Ft.)
- Upper Basement: ₹122.50
- Ground Floor: ₹122.50
- First Floor: ₹83.50
- Second Floor: ₹68.60
Commissioner Confirms Implementation
“We have now implemented the rent revision order issued in 2014. Tenants will have to pay the revised rent, along with applicable interest, with effect from 2014,” G. Jagadeesh, Commissioner, Central City Corporation, said.