Property tax auctions trigger confusion amid record errors in Bengaluru

An auction drive by the Bengaluru West and North City Corporations to recover property tax arrears through auctions was met with confusion on Saturday, as record errors and outdated databases triggered frustration among residents.

The auctions, conducted under the Greater Bengaluru Governance Act, 2024, aimed to recover a portion of the Rs 437 crore owed by 7,000 properties citywide at the Malleswaram Zone-2 and Yelahanka offices.

Residents reported that the corporation’s database failed to reflect recent property divisions, gift deeds, or ownership transfers. “Some of these numbers belong to people who are long deceased,” one resident noted, highlighting that new IDs are often issued for divided properties while the old, unified records remain active and continue to accrue arrears. Elderly citizens described the ordeal as “tension upon tension”, claiming they were forced to repeatedly prove they did not owe money for dues already paid.

Auction results

In the North City Corporation, 107 properties with Rs 2.49 crore in arrears were put on the block. Despite over 10 bidders participating, only one sale was finalised. A 2,087 sq ft flat in Allalasandra (arrears: Rs 1.17 lakh) was sold to Kamala for Rs 84.60 lakh.

A property in Yelahanka Old Town received a Rs 60 lakh bid, but the sale was cancelled after the bidder failed to provide the required demand draft (DD).

Joint Commissioner Sangappa clarified that the auction is a last resort following SMS alerts and attachment orders. To avoid legal complications, officials granted reprieves to owners making partial payments. High bidders must deposit 10% or Rs 5 lakh within two hours and clear the balance within 35 days.

Cut-off box - Property owners given enough chances: DKS
The city corporations have started auctioning properties with high property tax dues leaving citizens worried. However Shivakumar said the corporations would not go back on their decisions as property owners were given enough chances to pay up.
“Our government introduced the One Time Settlement (OTS) scheme which benefitted close to 2.6 lakh property owners. They could have paid then when we waived off the interest and penalty. Even after such opportunities if they have not paid up we cannot help much” Deputy Chief Minister Shivakumar said.