BANGALORE: Seems like the cash-strapped Bruhat Bangalore Mahanagara Palike (BBMP) has found rich ‘resources’ to repay loans and clear its long-pending dues. Unable to pay Rs 2 crore loan interest every day, BBMP on Tuesday, decided to mortgage Public Utility Building (PUB) and Jayanagar Shopping Complex to raise a Rs 1,000-crore loan from HUDCO. Members of BJP and BBMP Commissioner K Shankarlinge Gowda termed the decision, ‘inevitable’. The resolution was passed amid strong protest by Congress and JD(S) councillors.Gowda said the loan was being raised to restructure the loans taken by BBMP. He added that the state government approved the proposal. “HUDCO has provided sufficient moratorium period, and during this period, BBMP will restructure loan plans and carry out development work.”Opposition leader M K Gunashekar quipped it was unfortunate that BBMP could not mobilise resources and has been pledging significant properties in the city to raise loans. “The ruling party should approach the state government for funds. Even the opposition parties will support,” he said.Hanumanthanagar councillor K Chandrashekar remarked, as per the Fiscal Deficit Act, a local self-government can raise loan upto 10 per cent of the budget or 25 per cent of its total revenue, but it was unscientific to avail the loan before placing the budget.Replying to Chandrashekar’s query, Gowda said hat availing loan was inevitable.“Both the Union and state governments have violated the Fiscal Deficit Act in availing loans and the BBMP has no choice,” he said.
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