Karnataka Cabinet to decide on B'luru property tax issue

The civic body had hoped that its proposal would be discussed during the recently concluded monsoon session of the state legislature

Chief Minister Basavaraj Bommai has referred a proposal by the Bruhat Bengaluru Mahanagara Palike (BBMP) to resolve the confusion over property tax assessment and the subsequent 'defaulter' notices served to citizens to his Cabinet.

The civic body had hoped that its proposal, which it had submitted through the Urban Development Department (UDD), would be discussed during the recently concluded monsoon session of the state legislature.

“Now, the proposal has to be placed before the state cabinet for approval,” a senior official from the UDD revealed to DH.

“There were a few confusions pertaining to legal provisions. Hence, it could not make it to the Assembly for discussion and approval. But now the proposal is more or less ready to be placed before the Cabinet as instructed by the CM.”

The BBMP's decision to levy a penalty had drawn flak from citizen groups and Opposition parties. As criticism mounted, the civic body had proposed two options to resolve the issue.

While the first option proposed to waive both the penalty and interest, the second option included waiver of only the penalty amount and collection of interest at the prevailing interest rates of nationalised banks. “The government is likely to approve the first option,” the official said.

As per the BBMP, the total penalty levied amounted to Rs 232 crore and the interest came to Rs 89 crore.

Many citizen groups criticised the government over the prolonged delay in arriving at a decision.

“We have been receiving many calls from people who are anxious on whether they should pay the penalty or wait for a decision,” said Srikanth Narasimhan, General Secretary of the Bengaluru Navanirmana Party (BNP), which is also fighting the issue on behalf of citizens.

A senior official from the revenue wing of the BBMP told DH that out of the 78,000 identified defaulters, notices had been served to 25,000 citizens. "The BBMP has temporarily stopped issuing the notices as the matter is being pursued at the government level," the officer said.

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