BBMP is now empowered to recover property tax arrears by attaching the bank accounts and immovable properties of defaulters. Previously, they could only issue demand notices and seal premises, but legal challenges hindered enforcement. With the 2024 property tax rules, BBMP can issue attachment warrants, forcing banks to disclose and freeze defaulters' accounts, including fixed deposits. Non-compliant banks face legal action under the Bharatiya Nyaya Sanhita-2024, strengthening BBMP's ability to ensure tax compliance.
The Bruhat Bengaluru Mahanagara Palike (BBMP) has been granted enhanced powers to tackle property tax defaulters as part of its updated arrears recovery process under the 2024 property tax assessment, recovery, and management rules. Previously, BBMP's efforts to recover dues were limited to issuing demand notices and sealing the premises of non-compliant property owners. However, these measures often faced legal challenges, as defaulters frequently approached the courts to block the enforcement of BBMP's actions.
Under the new rules, BBMP now has the authority to attach both the bank accounts and immovable properties of property tax defaulters, significantly strengthening its ability to recover unpaid taxes. The notification formalizing this change was issued on a recent Monday, and it impacts the nearly three lakh properties that currently appear on BBMP's tax default list.
In practice, once BBMP verifies the bank credentials of a tax defaulter, it can issue an attachment warrant to the defaulter's bank using Form 16. Following the issuance of the warrant, the bank is legally obligated to provide full disclosure of all accounts held by the defaulter, including fixed deposits. Should the bank fail to comply with these directives, allowing the defaulter to access the funds, BBMP can take legal action against the bank under Section 222 of the Bharatiya Nyaya Sanhita-2024.
This action includes mandating the bank to serve a copy of the attachment warrant to the defaulter, either in person or via mail, thereby ensuring that defaulters are properly informed and compliance is enforced. These expanded powers are expected to bolster BBMP's efforts to recover significant arrears and improve overall tax compliance in Bengaluru.
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