(1) The lease amount of the site to be allotted on lease basis in any area shall be fixed by the Authority as below,- Payment Plan One-time payment (Lump sum) Annual Payment (Annuity) Lease amount 30% of the sital value 2% of the sital value annually Initial deposit 10% of the lease amount Advance payment No advance payment 15% of the lease amount Time period If the lease amount or the annual installment is not paid within the period of ninety days from the date of allotment, further extension of time not exceeding sixty days may be given and the institution shall pay in addition, interest at the rate of 12% on the said amount for the extended period.
Note: Initial deposit and advance payment are calculated by considering thirty percent of the sital value for both lump sum and annual payment.
(2) The lease amount may be notified while inviting in total or in annual installments during the lease period.
(3) The lease amount of a site while notifying may be altered by the authority maximum of two times with changes up to ten percent of the sital value each time.
Any further alteration of the lease amount shall be done with the prior approval from the Bengaluru Metropolitan Regional Development Authority:
Provided that the Authority shall undertake the procedure as per sub-rule
(3) of rule 4 every time the lease amount is altered.
(4) Allotment may be made at fifty percent of the lease amount fixed by the Authority in the following cases, namely:-
(a) Institutions established for the welfare of physically and mentally handicapped, Scheduled Castes and the Scheduled Tribes;
(b) Educational institution running the schools in only Kannada medium;
(c) Trust created wholly for Charitable, Religious, Cultural activities;
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(d) The Departments of the Central Government or the State Government, Corporation or a body established by the Central Government or the State Government:
Provided that, in respect of an allottee under clauses (a), (b) and (c) who is not allowed with the benefit of reduction of fifty percent of lease amount shall be allowed fifty percent reduction in the annuity lease amount. The annuity lease amount shall not apply to Institution under clause (d).
Note: For the purpose of this clause, charitable activity shall have the same meaning as under the Income Tax Act, 2025 (Central Act 30 of 2025).
(5) The lease may be renewed in favour of the lessee for a further period of thirty years by re-fixing the lease amount as specified in these rules considering the prevailing value at the time of renewal:
Provided that, in case of renewal of lease, where in, the lessee has violated any of the conditions specified in these rules at any point of time during the preceding lease period, such a lease shall not be renewed and the lessee shall be evicted from the site by the Authority and the civic amenity site shall be resumed and vest with the Authority.
(6) If the lease is not renewed or has been determined or terminated before the expiry of the lease, the site allotted along with the buildings thereon shall, after the expiry of the lease or as the case may be, after the termination or determination of the lease vest with the authority free of cost and free from all encumbrance and the authority shall have right to enter the premises and take possession thereon.