'BBMP's tax recovery bigger scam than microfinance': Karnataka BJP in Assembly

Bengaluru: BJP lawmakers targeted the Bruhat Bengaluru Mahanagara Palike's (BBMP) new rules to penalise property tax defaulters, with Leader of the Opposition R Ashoka likening this to predatory tactics used by microfinance companies for loan recovery.

The issue was raised by Jayanagar BJP MLA C K Ramamurthy in the Assembly on Thursday during a discussion on Chief Minister Siddaramaiah's 2025-26 Budget.

"In Bengaluru, 10,000 properties have been sealed. Some IAS officers have levied hefty penalties and are using coercive means to recover tax dues," Ramamurthy charged. "For dues of Rs 7,000-12,000, properties are being sealed and put up for auction. I have documents," he said, adding that citizens must be given time to pay.

Ramamurthy said the BBMP is issuing proclamations declaring that a person cannot pay property tax. "With these proclamations, the BBMP is proceeding towards auctioning properties for tax dues as low as Rs 8,000. What is this? How should people live?" he said, claiming that this is driving people towards suicide.

"In my constituency, people have attempted suicide," he said, criticising the government's anticipation of mopping up taxes amounting to Rs 6,000 crore.

Ashoka said the BBMP's rules are unprecedented. "Property tax defaulters have to pay a penalty, which is double the amount due, with a 15 per cent interest. This will be applicable even if there's a delay by one day. If a person has to pay dues amounting to Rs 10,000, the penalty itself is Rs 10,000 and then there's interest," he said.

"Does this exist anywhere in the world? This is a bigger scam than microfinance," Ashoka said, accusing the government of running a "meter baddi" (meter interest) business, which is an exploitative practice of lending at extremely high rates of interest.