(1) The lessee gets no inherent right beyond the term of his lease and the policy to extend an existing lease shall be at the sole discretion of the Bruhat Bengakru Mahanagara Palike and the extension may not be given in case the property or land is needed for the Bruhat Bengaluru Mahanagara Palike’s own use or any other public purpose.
(2) The Bruhat Bengaluru Mahanagara Palike may choose to proceed to lease the property as it exists or after demolition (in part or full) and reconstruction. The existing lessee shall give in writing his option to seek one extension, without going through tender or auction process, at any time but, at least two months before the expiry of his on-going lease or in case of an expired lease, within six months from the date of notification of these rules. Failure to give option in writing within the specified time limits shall be treated that the existing lessee does not wish to opt for extension of lease without tender or auction process and the property shall be auctioned free from all encumbrances. In case, the present lessee with an existing lease chooses to apply for another lease of a term equal to term of the existing lease, then the existing lease shall be shot-closed on the date from which the extended lease term starts.
Illustration 1:
(a) A has a lease of a shop for five years starting from 1.4.2020 and is in its fourth year in 2024.
(b) A’s lease ends on 31.3.2025.
(c) At any time on or before 31.1.2025-which is two months before the date of expiry of the current lease, A may seek extension of the lease up to another five years term, which is the tenure of his existing lease, for the shop from the Bruhat Bengaluru Mahanagara Palike.
(d) If he seeks extension on 10.6.2024 for another term of five years and if the Bruhat Bengaluru Mahanagara Palike grants extension for five years term on
15.7.2024, then the present lease shall automatically deemed to have been short closed on 14.7.2024 and the extension lease for five years shall be with effect from
15.7.2024 until 14.7.2029. No further extension shall be given to the extended lease after 14.7.2029, but A shall be eligible to participate in the open tender or auction, to win the rights for another lease or renting of the same or any other Bruhat Bengaluru Mahanagara Palike property or shop.
Iluustartion 2:
(a) A had a lease of a shop for three years starting from 1.4.2018 and it expired on 31.3.2021, but, A continued to be in occupation without getting any extension of his lease.
(b) A continues to be in occupation even now and is actually running the business for which the lease was given.
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(c) A is in unauthorized occupation of the shop and has not paid the rents in these years.
(d) A is eligible to apply for one extension of the expired lease with in three months of notification of these rules.
(e) A shall pay up to date rent and interest and penalties, if any, and only then A shall be eligible to be considered for one extension.
(f) If A pays all the rent and interest for previous arrears and other dues to the Bruhat Bengaluru Mahanagara Palike upto date, then A shall be eligible for one extension of three years term, which is same as the last validly held lease term, with effect from issuance of the extension order by the Bruhat Bengaluru Mahanagara Palike.
(g) The intervening period of unauthorized occupation shall be regularized upon payment of all and complete dues up to date and when the order extending the lease for three years is passed.
(h) In case the extension order is issued on 19.7.2024 for three years, then the same shall be valid until 18.7.2027. No further extension shall be given to the extended lease after 18.7.2027, but, A shall be eligible to participate in the open tender or auction, to win the rights for another lease or renting of the same or any other Bruhat Bengaluru Mahanagara Palike property or shop.
(3) In case the Bruhat Bengaluru Mahanagara Palike decides to lease the properties as they exist, then the Special Commissioner in-charge of markets or estate or the Zonal Commissioner shall start the process of re- tender or auction following the procedure under rule 7, at least three months in advance from the date of expiry of the lease, so as to complete the process of selection of the new lessee before the expiry of the existing lease term, for such shops for which the existing lessee does not opt to get one extension of the lease. In case of plan of reconstruction, the tender or auction of the new property may be done at any suitable time after the vacation and demolition.
(4) In case the existing Lessee opts for participation in the open tender or auction then the regular procedure as applicable for a fresh lease and tender or auction shall be applicable. However, in case an existing lessee opts for one extension, then the Lessee shall deposit One Time deposit (OTD) equal to 100% of the minimum prescribed One Time Deposit (OTD) for such a property. The Lessee shall deposit 100% of the Minimum OTD amount within fifteen days of approval of the extension by the Bruhat Bengaluru Mahanagara Palike.
(5) In case of failure to deposit, the approval of extension shall stand automatically withdrawn for default and the Lessee shall be treated as defaulter and the property shall be put to open tender or auction and the lessee shall lose the right to get extension. However, such a lessee shall be eligible for bidding or participation in open tender or auction.
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