SBI Term Loan: RLLR: 8.15 | 7.25% - 8.45%
Canara Bank: RLLR: 8 | 7.15% - 10%
ICICI Bank: RLLR: -- | 8.5% - 9.65%
Punjab & Sind Bank: RLLR: 7.3 | 7.3% - 10.7%
Bank of Baroda: RLLR: 7.9 | 7.2% - 8.95%
Federal Bank: RLLR: -- | 8.75% - 10%
IndusInd Bank: RLLR: -- | 7.5% - 9.75%
Bank of Maharashtra: RLLR: 8.05 | 7.1% - 9.15%
Yes Bank: RLLR: -- | 7.4% - 10.54%
Karur Vysya Bank: RLLR: 8.8 | 8.5% - 10.65%

Bengaluru civic body issues INR 473 crore property tax notices to government buildings over long-pending dues

#Law & Policy#India#Karnataka#Bangalore
Bangalore News Desk | Last Updated : 5th May, 2026
Synopsis

The Bruhat Bengaluru Mahanagara Palike (BBMP) has issued property tax notices amounting to around INR 473 crore to various government departments and public sector entities for unpaid dues in Bengaluru. The action, initiated in the past week, targets state and central government properties that have either defaulted on payments or underreported tax liabilities. Civic officials stated that the drive forms part of efforts to improve revenue collection and enforce compliance across all property owners, including government bodies. The development highlights persistent gaps in municipal tax recovery and the financial strain on urban local bodies.

The Bruhat Bengaluru Mahanagara Palike stated in the past week that it has issued property tax demand notices totalling approximately INR 473 crore to government buildings across Bengaluru, citing long-pending dues and discrepancies in tax payments.


According to civic officials, the notices have been served to a range of state and central government departments, as well as public sector undertakings, which have either not paid property tax or have underreported their liabilities over several years. The move forms part of a broader enforcement drive aimed at improving tax compliance and strengthening municipal revenues.

Officials indicated that a detailed assessment exercise was undertaken to identify properties owned or occupied by government entities that fall within the municipal tax net. This included verification of property records, built-up areas and applicable tax rates to determine outstanding dues. In several cases, properties were found to have either not been assessed correctly or had accumulated arrears over extended periods.

The civic body clarified that government properties are not exempt from property tax unless specifically notified, and are required to comply with the same regulations applicable to private property owners. The issuance of notices is intended to ensure parity in enforcement and address revenue leakages within the system.

The development comes at a time when BBMP has been focusing on improving its financial position through enhanced tax collection and recovery measures. Property tax constitutes a significant share of the civic body’s revenue, supporting expenditure on urban infrastructure, public services and maintenance.

Officials noted that follow-up action will depend on the response from the concerned departments. In cases of non-payment, the civic body may initiate further steps under municipal laws, including penalties or recovery proceedings.

The move has also drawn attention to structural challenges in tax administration, particularly in cases involving inter-governmental entities, where coordination issues and administrative delays often result in prolonged dues.

Urban experts have pointed out that consistent enforcement across all categories of property owners is critical to maintaining fiscal discipline and ensuring sustainable urban governance. The current exercise is expected to improve transparency in property tax records and reinforce accountability among public institutions.

The BBMP indicated that similar verification drives may be extended to other categories of properties in order to widen the tax base and improve compliance levels, as the city continues to face growing demands for infrastructure investment and service delivery.

Have something to say? Post your comment