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BBMP is set to begin auctioning properties with unpaid tax dues this month, particularly targeting non-residential properties whose owners failed to clear dues despite the One Time Settlement (OTS) scheme. As of November 23, 2.3 lakh property owners still owed INR 365 crore out of a total INR 734 crore. The BBMP began issuing notices from December 2, and wo;; auction only properties not under court orders. Revenue officials also highlighted that over two lakh defaulters remain, while BBMP has collected INR 221 crore from unassessed properties, urging owners without a khata to apply for provisional tax numbers.
Starting this month, the BBMP will begin auctioning properties with unpaid tax dues. Defaulters, particularly those with non-residential properties, who have not cleared their dues despite the introduction of the One Time Settlement (OTS) scheme nine months ago, will face consequences, according to civic officials. The OTS scheme, which concluded on Saturday, provided defaulters with rebates on interest and penalties. As of November 23, out of nearly 4 lakh properties with tax dues amounting to INR 734 crore, owners of 2.3 lakh properties had yet to pay over INR 365 crore, as per BBMP data obtained by TOI. Advertisement
Munish Moudgil, BBMP's Special Commissioner (Revenue), confirmed to TOI that the Palike will begin auctioning properties of defaulters in December. The BBMP Act of 2020 and the BBMP (Property Tax Assessment, Recovery, and Management) Rules of 2024 authorize the sale of movable or immovable properties to recover property tax, penalties, interest, cess, and other dues. BBMP sources revealed that around 20,000 non-residential property owners have pending tax dues amounting to approximately INR 150 crore. Starting December 2, the Palike will issue notices to defaulters, and after completing the necessary procedures, properties will be sold at a public auction. Officials clarified that the auction will only involve properties that are not under court stay orders.
Revenue officials stated that more than two lakh property owners have failed to clear their dues despite being given over nine months to do so. BBMP does not anticipate a significant surge in recoveries on the final day (Saturday), although property owners will have one last opportunity to settle their dues until midnight. The BBMP has collected over INR 221 crore from 60,681 properties that were previously unassessed or outside the tax net. The Palike estimates that around 5 lakh properties in Bengaluru lack a khata and are not paying property tax. Property owners without a khata can submit an online application and receive a provisional tax number, allowing them to pay the property tax using that unique identifier.
In conclusion, BBMP's decision to auction properties with outstanding tax dues reflects its strict stance on defaulters, especially non-residential property owners. Despite the nine-month window provided by the OTS scheme, a significant number of property owners remain non-compliant, leading to the auction process. This move aims to recover substantial dues and ensure better tax compliance in the future. Additionally, the introduction of provisional tax numbers for property owners without a khata highlights BBMP's efforts to include more properties in the tax net. The ongoing efforts to improve tax collection will likely yield long-term benefits for Bengaluru's civic revenue.
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