Beyond Akrama Sakrama: Govt explores alternative route to tax illegal buildings

A sub committee headed by Forest, Ecology and Environment Minister Eshwar B Khandre looked into the viability of extending to municipal corporations and other ULBs the provisions of the BBMP Act 2020 that allow levying of tax on illegal buildings and layouts.

Six years after the Supreme Court put the brakes on the state government's Akrama Sakrama scheme, a Cabinet sub-committee on Thursday directed officials to prepare a proposal for collecting taxes and cess from over 34 lakh unauthorised properties in urban local body (ULB) limits other than BBMP.

A Cabinet sub-committee, headed by Forest, Ecology and Environment Minister Eshwar B Khandre, looked into the viability of extending to municipal corporations and other ULBs the provisions of the BBMP Act 2020 that allow levying of tax on illegal buildings and layouts by issuing "B' Khata.

Khandre explained the vexed position of ULBs which are incurring expenditure on basic amenities to illegal properties but get no tax revenue in return. "At present, there are about 54.91 lakh properties in ULB limits of which 20.55 lakh are authorised and pay tax. However, no tax is levied on 34.35 lakh properties though they are given all facilities like water, roads, electricity, street lighting and waste collection services," he said.

Khandre said it was the responsibility of the sub-committee to recommend ways to tax properties to ensure the effective functioning of ULBs. Noting that regularisation ('Akrama-Sakrama') of illegal buildings was stayed by the apex court, he said the committee would explore the possibility of adopting rules similar to the BBMP according to 'B' khata to enable taxation.

Revenue Minister Krishna Byregowda noted that easing the procedures to get approval for building plans would check the growth of illegal properties. "Updating the status of a land as illegal layout in column 11 of RTC and allowing direct connection to the sub-registrar will help curb such developments," he suggested.

Tourism Minister H K Patil, another member of the committee, noted that all registration of properties must take place through e-khata in order to prevent illegalities like encroachment of government land. He, however, stressed the need to have a sympathetic outlook towards illegal constructions by the poor.

The meeting of the sub-committee concluded with the chairman directing IAS officer Munish Moudgil to draft a proposal for taxation of unauthorised properties. Moudgil, principal secretary to the government, was recently made special commissioner (Revenu), BBMP. Moudgil had also served as the commissioner of Survey, Settlement and Land Records.

A senior official, however, explained that collecting property tax and cess from illegal buildings will in no way facilitate their regularisation. "It is an instrument to make the owners of such properties pay for the services. Otherwise, the property tax burden falls only on those who follow the rules," he noted.

The state government had in 2016 amended the Karnataka Town and Country Planning Act to insert a provision for "regularisation" of properties, including land use changes, that were in contravention with the rules governing development projects. However, the move was stayed by the Supreme Court, which directed the government to take "all care and precautions" to ensure that the properties are built in accordance with the bylaws.

The BBMP Act which came into effect in January 2021 introduced the provisions to collect tax from illegal buildings without touching the subject of "regularisation". Section 144 (6) allows collecting of property tax from buildings and layouts constructed in violation of bylaw provisions with 144 (21) directing officials to maintain a record of lawful and unlawful buildings and vacant lands.