More than 100 civic properties in Bengaluru remain occupied by former lessees even after their agreements expired, leaving the Bengaluru Central City Corporation without control of most of the assets and potentially depriving it of rent at current market rates, according to a report by Bangalore Mirror.
The corporation had leased 119 properties across its limits, but officials have so far reclaimed only nine. The remaining properties continue to be used by former lessees, several of whom are paying rents fixed when the original agreements were signed. In some cases, the leases expired several years ago, but the agreements have not been renewed or formally cancelled.
The properties are located in prominent parts of the city, including Chamarajpet, Chickpet, Shivajinagar and Gandhinagar. They were leased for varied purposes, including offices, educational and cultural institutions, post offices and other public-interest activities. The report also states that some properties assigned for private use have not been reclaimed despite the expiry of their lease periods.
The immediate administrative problem is not limited to the expiry of individual agreements. The civic body must establish whether each occupant has a valid basis to remain on the premises, whether the original use continues to serve a public purpose and what rent should apply if a lease is renewed. Until those questions are resolved, the properties remain in a legal and operational grey area, with the corporation unable to fully manage or monetise them.
Officials have approached some lessees and asked them to renew their agreements, the report said. However, the concerned parties have neither renewed the leases nor surrendered the properties. This has left the corporation with limited control over assets that are formally part of its property portfolio.
The revenue implications arise from the gap between historical rents and prevailing market rates. Occupants continuing to pay rates fixed at the time of the original agreements may be using valuable civic premises at terms that no longer reflect their location or commercial value. The report does not provide an estimate of the total rent forgone or the current market value of the properties.
The situation also highlights the importance of maintaining an updated lease register, monitoring expiry dates and initiating renewal or recovery proceedings before agreements lapse. Without timely action, civic property management can become dependent on individual follow-up rather than a consistent system of asset oversight.
The corporation’s recovery of nine properties indicates that some action has begun, but more than 100 properties remain unresolved. The next steps are expected to involve decisions on renewal, surrender or recovery for each premises, along with clarification of the status of properties being used for public-interest and private purposes.
