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The Bruhat Bengaluru Mahanagara Palike (BBMP) is preparing to intensify actions against major commercial property tax defaulters following the end of the One-Time Settlement (OTS) scheme. With an outstanding INR 300 crore due from nearly 2 lakh properties, BBMP has developed a comprehensive plan, targeting 240 properties across various zones, focusing primarily on commercial ones. Residential properties will not be seized unless unoccupied. However, the Bengaluru Coalition has criticized BBMP's approach, calling it insufficient and ineffective. They argue that sealing properties under existing laws has had little impact and doesn't address the issue at hand.
The Bruhat Bengaluru Mahanagara Palike (BBMP) is preparing to take stringent actions against commercial property tax defaulters after the expiry of the One-Time Settlement (OTS) scheme on November 30, 2024. BBMP Chief Commissioner, Tushar Giri Nath, stated that the civic body has begun compiling a comprehensive list of defaulters. Advertisement
The BBMP's strategy includes targeting 240 properties across different zones. Zonal commissioners, joint commissioners, and other officials have been tasked with recovering dues from at least 10 major defaulters in each zone. While the primary focus will be on commercial properties, residential properties will not be seized unless they are unoccupied.
Nath highlighted that INR 300 crore remains outstanding from nearly 2 lakh properties, despite the BBMP overseeing a total of 23 lakh khatas, with only 21 lakh currently falling under the tax ambit. He emphasized the importance of sealing properties to send a clear message to defaulters that tax evasion will not be tolerated. Although BBMP is authorized to auction seized properties, it will follow due legal procedures, including providing sufficient notice before any auction takes place. Nath added that the civic body might also consider auctioning high-value properties if necessary to recover outstanding taxes.
However, the Bengaluru Coalition has expressed dissatisfaction with the BBMP's strategy. The group believes the current approach is inadequate and merely a superficial effort. In a statement, the coalition criticized the use of sealing properties under the Karnataka Town and Country Planning Act (KTCPA) Section 15(4), stating that it has proven ineffective and lacks real impact. They argue that recent actions by the BBMP are more about showing activity than addressing the issue. Furthermore, they pointed out that according to recent judicial orders from the Supreme Court, High Court, and Lokayukta, the next logical step after dismissing appeals is the demolition of property deviations, not sealing. The coalition contends that sealing properties, especially when Confirmation Orders under Section 248(3) have been pending for over a year, is a regressive move that fails to meaningfully address the tax evasion issue.
BBMP's renewed focus on recovering dues from commercial property tax defaulters highlights the civic body's determination to tackle the growing issue of tax evasion. Despite their actions, such as sealing properties, the Bengaluru Coalition has criticized the measures as ineffective. They believe that sealing is a token gesture, especially when legal processes such as demolitions of deviated properties are not followed through. While BBMP may continue with its plans to target high-value properties and auction defaulters' assets, there are concerns about the effectiveness of its current strategy in addressing the problem at its core.
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