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Writer's pictureThota Devaraju

BBMP's Property Tax Recovery Drive: property tax defaulters

Updated: Oct 2

The Bruhat Bengaluru Mahanagara Palike (BBMP) has been taking strict action against property tax defaulters across Bengaluru as part of its ongoing recovery drive. According to BBMP data as of September 1, over 49,487 properties have been attached, and 4,586 non-residential properties have been sealed. This aggressive campaign comes in response to more than 2.6 lakh defaulters, collectively owing a staggering ₹474 crore in unpaid property taxes.

Efforts to recover arrears have yielded positive results, with ₹273 crores recovered from 1.3 lakh properties since the start of the financial year. In the last week of August alone, BBMP managed to recover ₹27 crores from 26,862 defaulters.

Under the BBMP Act 2020, the civic body is empowered to seal or attach properties in cases of non-payment. Recently, on August 12, the Karnataka government introduced the BBMP (Property Tax Assessment, Recovery, and Management) Rules-2024, providing the BBMP with the legal authority to not only seal properties but also attach bank accounts of defaulters to recover dues.

The BBMP's efforts to recover dues are most apparent in Bengaluru's East Zone, where 9,401 properties have been attached, followed by the West Zone with 9,088. Mahadevapura Zone, one of the city’s fastest-growing areas, stands out as the most critical concern, with defaulters owing ₹116.03 crores.

The BBMP has continued its action against defaulters by attaching 14,906 properties across all zones just this week. However, challenges remain, as certain areas like Dasarahalli, Bommanahalli, R R Nagar, and Yelahanka still grapple with substantial unpaid taxes.

In a bid to provide relief and encourage defaulters to clear their dues, the Karnataka government extended the deadline for the One-Time Settlement (OTS) scheme for property tax arrears in Bengaluru until September 30. Under this scheme, property owners can benefit from a complete interest waiver on outstanding dues, and penalties have been reduced by half.

Despite these ongoing efforts, the BBMP is still facing a considerable shortfall in property tax collections, with ₹474.77 crore outstanding across all zones. While recovery efforts continue, the road ahead appears to be long as the civic body works towards clearing the backlog of property tax dues and reducing the number of defaulters.

property tax defaulters

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Disclaimer: This blog post is based on online information and is intended for general informational purposes only. Please refer to official sources for the most accurate and updated information.

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