Bengaluru Business Corridor: Landowners demand fair compensation, reject 35% land return clause

Bengaluru's Peripheral Ring Road project, now called Bengaluru Business Corridor, faces backlash from landowners over revised compensation plans.

Bengaluru’s long-delayed Peripheral Ring Road (PRR) project has sparked new outrage among landowners after the government issued a revised order on October 17, laying out a fresh compensation and development framework.

The ₹27,000-crore project, now renamed the Bengaluru Business Corridor (BBC), will span 2,560 acres across East, North, and South Bengaluru.(PTI Photo)

The ₹27,000-crore project, now renamed the Bengaluru Business Corridor (BBC), will span 2,560 acres across East, North, and South Bengaluru. It will be implemented through a Special Purpose Vehicle (SPV) created under the BDA Act, instead of being handled directly by the Bengaluru Development Authority. Landowners say this model reduces accountability and complicates compensation grievances.

The order confirms that land acquisition will continue under the BDA Act, 1976, invoking a 2022 Supreme Court ruling that exempts the project from the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (LARR) Act, 2013.

This means affected families will not receive enhanced compensation, rehabilitation benefits, or a lapse clause, a major concern for those whose properties have been frozen for nearly two decades.

Confusion over ‘35% land return’ clause

While the government has offered multiple compensation options—cash, Transferable Development Rights (TDR), Floor Area Ratio (FAR), or return of 35% developed land, landowners say there is no clarity on location, valuation, or timelines. “If we lose 65% of our land, what guarantee do we have that the remaining 35% will hold the same value?” asked one farmer from Hennur.

Commercial focus draws ire

Criticism has intensified over the revised design, which allocates 65 metres for the road and 35 metres for commercial development to fund compensation. Landowners allege this effectively turns a public infrastructure project into a real-estate venture, benefiting developers more than displaced families.

The government has also notified a 500-metre ‘impact zone’ on both sides of the PRR, making nearby property owners liable to pay Betterment Tax under Section 20 of the BDA Act. Those already losing land say the additional levy is a “double penalty”.

Landowners seek MPC review

The order, approved by the Cabinet without public consultation, has been criticised for violating constitutional norms under Articles 300A and 243ZE, which protect citizens’ property rights and mandate participatory urban planning.

Landowners are now demanding a Metropolitan Planning Committee (MPC) review, along with a fair-market compensation model and inclusion in the project’s equity structure.