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Bengaluru: BBMP to auction properties with significant tax arrears starting February 5

#Taxation & Finance News#India#Karnataka#Bangalore
Last Updated : 29th Jan, 2025
Synopsis

The Bruhat Bengaluru Mahanagara Palike (BBMP) will auction four properties with outstanding tax dues totaling INR 2.52 crore, following repeated warnings to owners. Auctions will take place on February 5 for an East Zone property with arrears of INR 11 lakh and on February 6 for properties in Dasarahalli and Bommanahalli Zones, with dues ranging from INR 30 lakh to INR 1.8 crore. Conducted under Section 156(5) of the BBMP Act 2020, the initiative aims to recover unpaid taxes and enforce compliance. Property owners can avoid auction by clearing dues before the scheduled dates. More than 500 additional auction notices are expected in the coming weeks.

After issuing multiple warnings to property owners about the potential auction of properties with substantial tax arrears, the Bruhat Bengaluru Mahanagara Palike (BBMP) has confirmed that it will proceed with the auction of properties that have failed to settle their outstanding dues. This action follows a series of notices, which were ignored by the property owners. The auctions will include a property located in the East Zone, which is scheduled for February 5, along with two properties from the Dasarahalli Zone and one from the Bommanahalli Zone, which will be auctioned on February 6.


The tax arrears on the properties in the Dasarahalli Zone are particularly significant, with one property carrying a due amount of INR 1.8 crore and another with INR 30 lakh. Meanwhile, the property in Bommanahalli has arrears of INR 31 lakh, and the property in the East Zone is burdened with INR 11 lakh in outstanding taxes. These arrears represent a serious shortfall in tax collection, a key source of revenue for the city's municipal functions.

BBMP has clarified that the upcoming auction will be conducted under Section 156, Subsection 5 of the BBMP Act 2020. This provision allows the local governing body to auction properties when owners fail to pay their taxes, even after receiving showcause notices. These legal steps are being taken as a final measure to recover the tax dues that have not been addressed despite repeated notifications.

Munish Moudgil, the Special Commissioner for Finance at BBMP, emphasized that between 8 and 10 auction sale notices had already been issued. He further stated that in the coming weeks, BBMP plans to issue more than 500 notices for properties that have failed to clear their tax arrears. The auction process, Moudgil explained, includes a 10 to 15-day window between the issuance of the notice and the actual auction event. This gap allows time for publicity and ensures that all necessary arrangements are in place before the properties are sold.

Moudgil also pointed out a concerning trend: even property owners with relatively smaller arrears have failed to pay their dues. He clarified that if any of these owners settle their outstanding payments before the auction takes place, the sale for their property would be cancelled, providing an opportunity for them to avoid the auction and keep their properties.

This action by BBMP aims not only to recover overdue taxes but also to send a strong message to property owners about the importance of meeting their civic responsibilities. With several auctions scheduled, BBMP is determined to enforce the law and ensure that the revenue needed for the city's development is collected efficiently. As the number of auction notices continues to rise, BBMP hopes to bring a larger number of property owners into compliance with their tax obligations.

BBMP's decision to auction properties with significant tax arrears reflects its effort to recover outstanding dues and ensure compliance with property tax payments. Despite multiple notices, many property owners have not cleared their arrears, prompting BBMP to take action. With more than 500 auction notices planned in the coming weeks, the government body is keen on addressing this growing issue and recovering tax dues effectively. Property owners still have the option to pay their dues before the auction date to avoid the sale.

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