BBMP mulls attaching properties over tax dues

Recently, BBMP officials sealed the Mantri Mall in Malleswaram for continuously defaulting on property taxes

Sneha Ramesh, DHNS, Bengaluru,

Dec 27 2021, 00:08 ist
updated: Dec 27 2021, 02:12 ist

A BBMP official seals Mantri Mall in Bengaluru. Credit: DH File Photo/ B K Janardhan

Cracking the whip on property tax defaulters, the Bruhat Bengaluru Mahanagara Palike (BBMP) is framing rules that will enable the civic body to attach properties and bank accounts in lieu of pending dues.

Officials said the draft rules will be ready in another 15-20 days and submitted to the government for approval.

Records show that the BBMP is yet to recover a whopping Rs 2,268.94 crore from defaulters whose list includes several prominent clubs, hotels, hospitals, government agencies and industries.

An analysis of defaulters revealed that more than 50 such organisations and individuals, spread across various zones, must pay the BBMP Rs 33.68 crore (each owing more than Rs 25 lakh) in tax, excluding penalty and interest on dues.

Recently, BBMP officials sealed the Mantri Mall in Malleswaram for continuously defaulting on property taxes.

Senior officers from the revenue wing of the BBMP told DH that the Karnataka Municipal Corporation (KMC) Act 1976 permits the civic body to act only on movable properties of defaulters.

"Hence, we could only seize and auction furniture or other such properties of defaulters in lieu of pending dues all these days," officials said.

In the just-concluded legislature session, Chief Minister Basavaraj Bommai furnished a written reply on the issue. "The newly enacted BBMP Act 2020 provides for attaching all types of properties and accounts. We are in the process of framing rules and once it is completed, we will go ahead as per the provisions of the Act," he said.

A revenue officer said they have been pursuing the matter aggressively and recovering pending property taxes.

"Notices have been served to defaulters and we have been collecting dues along with 2% interest up to 2020-21. From 2021-22, we are going to charge 9% interest. Despite notices, defaulters were casual in approach," he said.

"However, attachment of properties and account will give us more teeth and help us in efficient recovery of pending dues," the official added.

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