Is High Commercial Rent & Security Deposit Fueling Footpath Encroachment?

 

(Courtesy: Deccanherald.com)

The Greater Bengaluru Authority (GBA) under the leadership of Sri.Krishna Byre Gowda, has recently intensified its drive to clear footpath encroachments across the city. While many citizens have welcomed the move, several street vendors and small business owners argue that the eviction is threatening their livelihoods.

This raises an important question:

Are we addressing only the symptom, while ignoring one of the root causes?

Encroachment is undoubtedly a problem. Footpaths are meant for pedestrians, not for commercial activities. Yet many small shops, cafés, and vendors extend their businesses onto footpaths by placing tables, chairs, display racks, or merchandise outside their premises.

Why does this happen?

One reason is that many businesses operate from extremely small shops. A café may have just enough space for a kitchen but no seating area. A retail store may struggle to display all its products within a limited floor area. As a result, the footpath becomes an extension of the shop.

Another reason is affordability.

Many aspiring entrepreneurs come from modest financial backgrounds. Renting a larger commercial space often requires not only a higher monthly rent but also a substantial security deposit . Even where tenancy laws prescribe limits, many prospective tenants report that commercial deposits remain a significant financial hurdle. (up to 10-12 times of rent as security deposit)

Unable to afford larger premises, many businesses settle for much smaller shops and eventually encroach public spaces.  This does not justify encroachment. Public footpaths belong to everyone and must remain accessible, especially for senior citizens, children, and persons with disabilities.

However, enforcement alone may not solve the problem.

If the government wants to eliminate footpath encroachment in the long term, it should also examine the economic factors that encourage it. Making commercial spaces more affordable, ensuring compliance with tenancy regulations, and developing dedicated vending zones for small businesses could reduce the pressure that leads to encroachment.

As per The Karnataka Rent (Amendment) Act, 2025, that came into force on January 8, 2026, Residential deposits are capped at 2 months, commercial at 6.   However, owners are still demanding 10-12 times of rent as security deposit.  This need to be contained. 

Urban planning works best when it balances three objectives:

• Protecting public spaces.
• Supporting small entrepreneurs.
• Enforcing laws fairly and consistently.

Clearing encroachments is necessary, but creating conditions where businesses no longer feel compelled to encroach may prove to be the more sustainable solution.  A cleaner and more walkable Bengaluru will require not only strict enforcement but also policies that make lawful business operations affordable and practical.