(1) The Special Commissioner in-charge of the markets or estate or the Zonal Commissioners may cause to put to public tender or auction of the immovable properties, through e-procurement portal.
(2) The public tender or auction through e-procurement portal shall be on the interest free One Time Deposit (OTD) that the tender or auction winner shall keep with the Bruhat Bengaluru Mahanagara Palike throughout the period of the lease.
(3) The One Time Deposit (OTD) is refundable to the lessee, without any interest, after the vacation of the property upon completion of the lease term or the termination lease as per the provisions of the Act, rules and the lease agreement:
Provided that the One Time Deposit (OTD) shall not be refunded for a period of one year from the date of signing of the agreement of the lease.
(4) A single eligible bidder can bid for as many immovable properties as he wishes.
(5) Sub-letting of the immovable property by the lessee shall not be permitted.
(6) There shall be a minimum reserved One Time Deposit (OTD) for each immovable property, called the Tender or Auction Upset Price, below which the tender or auction shall not be approved.
(7) The tender or auction upset price or the minimum reserved One Time Deposit (OTD) for each estate or property of the Bruhat Bengaluru Mahanagara Palike, according to section 45B of the Karnataka Stamp Act, 1957 (Karnataka Act 34 of 1957) shall be as follows,-
(a) Lease term not exceeding five years: Not less than 5% (Five percent) of Guideline Value of the property being leased out;
(b) Lease term from five to fifteen years: Not less than 7.5% (Seven and Half percent) of Guideline Value of the property being leased out; and
(c) Lease term from fifteen to thirty years: Not less than 10% (Ten percent) of Guideline Value of the property being leased out.
(8) The Guideline Value shall take into consideration the value of both land and the building while determining the above minimum reserved One Time Deposit (OTD). The basic formula for the minimum reserved One Time Deposit (OTD) shall 6 be the Guidance Value multiplied by Plinth and/or plot Area of the property being leased out.
(9) The auction shall be done for each individual immovable property capable being leased out and the bidder who bids the highest One Time Deposit (OTD) shall be the tender or auction winner.
(10) The tender or auction bidders shall deposit required earnest Money Deposit or the Bid Security in e-procurement portal as per the provisions of the Karnataka Transparency in Public Procurement Act, 1999 (Karnataka Act 19 of 2000).
(11) The tender or auction winner shall deposit the winning One Time Deposit (OTD) amount with the Bruhat Bengaluru Mahanagara Palike, with in fifteen days from the date of declaration of tender or auction as successful and issuance of Letter of Intent or Offer Letter, failing which the bid shall be rejected for default and the bidder shall be treated as defaulter and the Earnest Money Deposit or the Bid security amount deposited shall automatically stand forfeited, without any encumbrance on the property, for the default and such defaulter shall stand barred from bidding for a period of one year from the date of order of forfeiting the Earnest Money deposit or the Bid security.
(12) The monthly rental or the monthly lease payable for the immovable property shall be as follows,- (A) Buildings or Shopping complexes other than centrally air-conditioned:
(a) Street Facing Properties on the Ground Floor at 0.25% (one-fourth percent) of the of the Guideline value of the estate or property being leased as per the latest notification issued by the Revenue Department under section 45 of the Karnataka Stamp Act, 1957 (Karnataka Act 34 of 1957).
(b) Properties facing the street but on basement at 90% of the amount payable for the Street Facing Properties on the Ground Floor.
(c) Properties not facing the street but on the ground floor at 90% of the amount payable for the Street Facing Properties on the Ground Floor.
(d) Properties on the first floor at 75% of the amount payable for the Street Facing Properties on the Ground Floor.
(e) Properties on the second floor at 65% of the amount payable for the Street Facing Properties on the Ground Floor.
(f) Properties on the third or higher floor at 55% of the amount payable for the Street Facing Properties on the Ground Floor.
(B) Buildings or Shopping complexes which are centrally air-conditioned:
(a) Properties on the Ground Floor at 0.25% (one-fourth percent) of the of the Guideline value of the estate or property being leased as per the notification issued by the Revenue Department from time to time under section 45B of the Karnataka Stamp Act, 1957 (Karnataka Act 34 of 1957).
(b) Properties on basement at 90% of the amount payable for the Properties on the Ground Floor.
7
(c) Properties on the first floor at 90% of the amount payable for the Properties on the Ground Floor.
(d) Properties on the second floor at 75% of the amount payable for the Properties on the Ground Floor.
(e) Properties on the third or higher floor at 65% of the amount payable for the Properties on the Ground Floor.
(C) Open or vacant lands shall be liable to pay monthly rental or monthly lease amount equal to 0.15% of the Guideline value of the estate or property being leased as per the notification issued by the Revenue Department from time to time under section 45B of the Karnataka Stamp Act, 1957 (Karnataka Act 34 of 1957).
(D) In case of extension of an existing lease or an expired lease under these rules, the lessee shall pay the monthly rent or monthly lease amount equal to 15% (fifteen percent) more than the last monthly rent amount payable by him in the previous lease or the monthly rent amount payable as per the applicable clauses (A), (B) or (C), whichever is lower:
Provided that, such monthly rent or lease amount shall be liable to increase at a rate of 10% (ten percent) per three years from the date of extension of the lease.
(13) The tender or auction shall be in compliance with the Karnataka Transparency in Public Procurement Act, 1999 (Karnataka Act 19 of 2000) and the rules made thereunder. The tender or auction shall be on-line through e- Procurement Portal of the Government.
(14) The advertisement for tender or auction shall contain details such as type of tender or auction, tender or auction details, immovable property and minimum tender or auction upset price, contact details of the tender or auction inviting authority and the tender or auction time period for bidding shall be at least fifteen days and published in at least one English and one Kannada newspaper with wide circulation in Bengaluru and Karnataka. Additionally, the copies thereof shall be pasted in the Notice Board of the Zonal Office and sent to all other Zonal Offices and all the offices of the Revenue officer and Assistant Revenue officer for display in their respective office notice boards. The advertisement shall also be put on the website of the Bruhat Bengaluru Mahanagara Palike.
(15) Any person eligible to participate in the tender or auction shall participate in the tender or auction online in e-procurement portal.
(16) The lessee shall not sublet the leased or rented properties, except when specifically permitted and included as part of the agreement by the Bruhat Bengaluru Mahanagara palike.
(17) The Special commissioner in-charge of markets or estate or the Zonal Commissioner shall make detailed proceedings of the tender or auction with the name and all relevant details of the tender or auction winners for each immovable property and submit to the Chief Commissioner for approval and the specified 8 agreement as per type of use and category of the immovable property, shall be entered into, after the approval thereof, with the tender or auction winner.