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The Greater Bengaluru Authority (GBA) has initiated a first-of-its-kind enforcement action to recover long-standing property tax arrears, auctioning seven defaulting properties after repeated attempts to secure payment failed. With outstanding dues totalling about INR 437 crore across nearly 7,000 units, the civic body moved to public auction as a last resort following notices, field visits and recovery drives by the former Bruhat Bengaluru Mahanagara Palike and the newly formed city corporations. Five properties in the East City Corporation area and two in the North City limits were successfully sold, while listings in the Central zone attracted no bidders. During bidding in the KR Puram division, 19 defaulters settled their dues when auctions began, and one property was withdrawn due to encroachment concerns. Deputy Chief Minister D K Shivakumar reiterated that affluent owners, including those earning rental income, would not be spared from tax enforcement.
The Greater Bengaluru Authority has adopted aggressive measures to tackle persistent non-payment of property taxes within the city's jurisdiction. Civic authorities have been grappling with tax defaults stretching back years, despite multiple reminders and outreach efforts. With arrears mounting to around INR 437 crore across an estimated 7,000 properties, the GBA resorted to public auction to compel compliance, marking an unusual shift in enforcement tactics. Advertisement
Under the auction process held earlier this week, seven properties were put up for sale five in the East City Corporation area and two in the North City limits. Central City listings failed to attract bids. In one East City division locale, a defaulter property valued at approximately INR 17.9 crore was included among those offered. As bidding commenced in the KR Puram area, 19 property owners opted to clear outstanding dues promptly, underscoring the pressure the auctions exerted on defaulters. One property was later withdrawn from sale after officials determined it encroached on a stormwater drain.
Deputy Chief Minister D K Shivakumar, who also oversees urban development, emphasised that the crackdown would not exempt well-off owners. He highlighted that some affluent property holders, including those earning rent and in a few cases former legislators had failed to settle their tax obligations despite repeated extensions and settlement schemes offered by authorities. Officials reiterated that clearing dues before the auction date halted sale proceedings for those units.
The GBA's approach follows extensive recovery efforts that included issuing notices, field-level engagement and follow-ups aimed at encouraging voluntary compliance. Auction rules typically require bidders to make an upfront deposit and complete payment formalities within a stipulated period if successful. Authorities have indicated that more auctions could follow if arrears remain unresolved, stressing that enforcement will continue until substantial recovery is achieved.
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