10,000 flats still out of tax net, BBMP poorer by Rs 200 crore

At least 10,000 flats have not yet come under BBMP’s property tax net, leading to a huge loss to the Palike exchequer. There are many residential complexes which have obtained Occupancy Certificates (OCS) years ago and people have started residing there. They have not been taxed yet.

The reason for not collecting the property tax is that the assessment of the property could not be done. The delay in assessing properties has caused a loss of about Rs 200 crore to the Palike exchequer.

Citing an example, top sources in the BBMP told DH that a multi-storey residential complex on Bannerghatta Road comprising 1,623 flats has not been taxed because the assessment of the property has not yet been done.

“The OC was issued in 2014 itself. As property buyers started moving in, they applied for tax assessment. Till now, the assessment could not be done and hence, tax could not be fixed,” said a source.

The reason behind the delay in issuing khata and assessment of property is that the revenue officers and their subordinates want their palms to be greased, which BBMP commissioner N Manjunath Prasad is also aware of, a source said.

“We too receive complaints about corruption in issuing khata and assessment of properties. We organised khatamelas from time to time for the convenience of property buyers. Bifurcation of khata, assessment of properties and payment of taxes were done at the melas,” said Prasad.

He said Palike sanctioned building plan for 1,350 residential complexes since 2007. Palike collects tax from the date of issuing OC or when the tax assessment is done. “Tax is collected from either the day OC is issued or tax assessment is done, whichever is earlier,” Prasad explained.