Citizen groups in Karnataka allege that a proposed tunnel road project is actually a real estate venture designed to benefit private developers [1].
The accusations suggest the project prioritizes private profit over public transport needs. If the claims are accurate, the state may be transferring significant public assets to a private entity without fair compensation.
Bengaluru Praja Vedike (BPV), a prominent citizen group, described the initiative as "a real estate project in disguise" [1]. The group said the structure of the project allows the concessionaire to capture lucrative development rights associated with the tunnel road [1].
According to BPV, the state government is allowing the concessionaire to acquire ancillary revenue in the form of real estate for "free" [1]. This arrangement effectively transforms a public transport scheme into a profit-making real estate venture, a move the group said lacks transparency [1].
The financial implications of this arrangement are substantial. BPV estimated that the value of the free ancillary real estate revenue handed to the concessionaire over the project's duration could reach ₹30,000 crore [1].
The project is being proposed by the Congress-led state government to address traffic congestion in the Bengaluru region [1]. However, critics said the primary motive is not congestion relief but the creation of high-value land parcels for private gain [1].
BPV representatives said the current model allows the private partner to exploit land surrounding the project without paying the state for those rights [1]. This creates a scenario where the public bears the risk of the infrastructure project while the private sector captures the most valuable side benefits [1].
“"a real estate project in disguise"”
This dispute highlights a growing tension in Indian urban planning between the need for rapid infrastructure development and the prevention of 'land grabbing' via public-private partnerships. By bundling transport infrastructure with real estate rights, governments can reduce the immediate cash burden of a project, but it often leads to allegations of cronyism and the loss of long-term public revenue.
