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Property tax collections in Bengaluru have recorded a significant shortfall of around INR 2,652 crore against a target of INR 6,700 crore for the current financial year, with total realisation standing at approximately INR 4,047.7 crore. The gap persists despite stepped-up enforcement actions, including property attachments and auction proceedings. The shortfall reflects ongoing compliance challenges across the city's tax base of over 21 lakh properties. While some zones such as South and East Bengaluru have performed relatively better, others, particularly North Bengaluru, continue to lag. The newly formed Greater Bengaluru Authority (GBA) and its five corporations are expected to take direct responsibility for revenue mobilisation going forward, highlighting the critical role of property tax in sustaining urban infrastructure and municipal finances.
Property tax collections in Bengaluru have fallen substantially short of targets for the ongoing financial year, with civic authorities reporting a deficit of over INR 2,652 crore against projected revenues, raising concerns over municipal finances and funding capacity for urban infrastructure. Advertisement
With the financial year nearing closure, the city has collected around INR 4,047.7 crore against a target of INR 6,700 crore, achieving roughly 60% of the expected revenue. The target included arrears from previous years, of which INR 761.7 crore has been recovered, while INR 3,286 crore pertains to collections from the current fiscal period. Despite these efforts, an estimated INR 814 crore from the current year's demand remains unrealised.
The shortfall has emerged despite intensified enforcement measures undertaken during the year. Authorities initiated property attachments, issued notices to defaulters, and introduced auctions as a last-resort recovery mechanism. While 172 properties were identified for auction, only a small number progressed to the final stage, and none were successfully sold due to legal hurdles, procedural delays, and limited bidder participation.
Officials indicated that enforcement actions have nevertheless had a deterrent effect. In several instances, property owners cleared pending dues upon receiving notices or ahead of potential auction proceedings. However, the data suggests that enforcement alone has not been sufficient to bridge the overall gap in collections.
The city's property tax base comprises approximately 21.7 lakh properties, covering residential, commercial, and mixed-use assets. At the beginning of the financial year, over 3.6 lakh properties were identified as defaulters, underscoring the scale of compliance issues. Performance across zones has remained uneven, with South and East Bengaluru achieving over 62% of their targets, while North Bengaluru recorded lower realisation levels of just above 54%.
Administrative restructuring during the year has also influenced revenue collection. Responsibilities were shared between the erstwhile Bruhat Bengaluru Mahanagara Palike (BBMP) and the five corporations operating under the Greater Bengaluru Authority, which was constituted midway through the fiscal period. From the upcoming financial year, these corporations will be directly accountable for property tax mobilisation and overall revenue generation.
Officials have indicated that further measures are being considered to address persistent non-compliance, including proposals to take over properties belonging to chronic defaulters after due process. The move is aimed at recovering long-pending dues and strengthening enforcement credibility, particularly in cases where repeated notices and penalties have failed to secure payment.
The continuing gap in collections highlights structural challenges in Bengaluru's property tax system, where compliance levels remain inconsistent despite policy interventions and enforcement drives. With property tax forming a key revenue stream for civic bodies, the ability of the new administrative framework to improve collection efficiency will be critical to sustaining planned expenditure and urban service delivery.
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