BBMP to pledge properties to clear loans?

BANGALORE: Cash-strapped Bruhat Bangalore Mahanagara Palike (BBMP) has finally found a way to ‘mobilise’ funds to repay its loans and also for other purposes. It is mortgaging its properties. This was revealed by BBMP Commissioner M K Shankarlinge Gowda.Replying to the query raised at the BBMP Council meeting on Tuesday by the Opposition leader M Udayshankar on mortgaging the historical Krishnarajendra Market (KR Market) for Rs 500 crore, Gowda, though denied of mortgaging market, said it is just a ‘collateral security’ to obtain loan.  The Commissioner added, “BBMP need not be ashamed for mortgaging the properties”.It is not for the first time that BBMP is mortgaging its properties. The Public utility building was pledged in 1974 and Jayanagar market in 1994. “According to State Fiscal act, the State Government should provide security. When government fails to give guarantee, the BBMP is forced to pledge the K R Market,” he said, adding that BBMP might pledge other properties in future too. Loan swapping and financial restructuring will be followed to bail out BBMP.  Through mortgage, BBMP will raise loan from Housing and Urban Development Corporation to pay off loans.