The East City Corporation is looking into the feasibility of adopting a Land Value Capture (LVC) system for acquiring land required for the long-pending Hoodi flyover project, as land acquisition has emerged as a major bottleneck.
The issue was discussed at a meeting chaired by Corporation Additional Commissioner (Development) Lokhande Snehal Sudhakar, who said the refusal of landowners to accept Transferable Development Rights (TDR) and their demand for cash compensation had mainly delayed the project. However, cash compensation is not permissible under existing rules, prompting the Corporation to explore alternative mechanisms, he said.
Under LVC, a portion of the increase in land value resulting from public infrastructure investments, such as flyovers, road widening, Metro projects and other urban development, is recovered and reinvested into public projects. The Additional Commissioner said that infrastructure development often leads to sharp appreciation in surrounding land values, and LVC allows part of this gain to be channelled back into public works.
Within the corporation limits, metro expansion, the Peripheral Ring Road (PRR), suburban rail projects, IT corridors and the development of Transit-Oriented Development (TOD) zones have led to a steep rise in land values, making land acquisition increasingly difficult.(
Mr. Sudhakar noted that the LVC model is well suited to the Bengaluru East limits and could support planned growth. However, he also flagged challenges in implementing the system, including accurate assessment of land values in fast-developing areas, the need for legal clarity and a uniform regulatory framework, public acceptance of the model, and coordination among multiple public agencies. The Town Planning Department has been directed to submit a detailed report addressing these concerns.
Published – February 05, 2026 12:45 am IST
