The Bengaluru civic government is owed Rs 711.1 crore in taxes by over 3.60 lakh properties.

BENGALURU: Bruhat Bengaluru Mahanagara Palike (BBMP) is having a lot of trouble getting property taxes from some of the most prominent establishments in the city, including hotels, malls, developers, educational institutions, and charity trusts.

Approximately 3.63 lakh homes owed Rs 711.1 crore in taxes as of May 18. With 57,043 houses owing Rs 95 crore, Bommanahalli tops the list, followed by Rajarajeshwari Nagar with 55,073 properties owing Rs 54.31 crore.

Additionally, a difference of Rs 231.77 crore is expected to be paid by 1,66,557 properties.
“We are calling these defaulters and revising cases using an IVR system and sending them SMS messages every day.

They do not, however, make the overdue tax payments. Munish Moudgil, special commissioner of the BBMP (revenue), told TOI, “We will shortly begin special enforcement for recovery in accordance with the law.

Even though BBMP has previously made this list available to the public, many of the defaulters on it still do not pay their taxes. A significant source of funding for the BBMP is property tax, and the collection department faces ongoing difficulties because some properties have tax arrears dating back many years.

Even though BBMP has previously made this list available to the public, many of the defaulters on it still do not pay their taxes. A significant source of funding for the BBMP is property tax, and the collection department faces ongoing difficulties because some properties have tax arrears dating back many years.

Numerous defaulters on the BBMP’s list have routinely disregarded numerous warnings over an extended period of time. Many property owners continue to be oblivious to their tax duties in spite of the BBMP officials’ attempts to ensure compliance, which include sending notices, sealing properties, taking possession of inheritances and immovable property, and even seizing bank accounts.

Property tax defaulters’ zone-by-zone information (source: BBMP)
The bureaucratic procedure associated with these enforcement operations can be laborious and slow, which makes it more difficult for the BBMP to collect arrears.

“The defaulters bring a stay from the courts whenever we issue them notifications, which forces us to tie our hands. “What is the purpose of having a revenue cell if the stays prevent it from operating at its best?” Moudgil said.

In the hopes that many would pay up, we have so developed the OTS, a time settlement plan,” he continued.
A 5% discount is available under the scheme for payments made over a longer period of time.

Even with this incentive, many property owners are still averse to paying their debts, which is dishearteningly low compliance, according to Moudgil.

Property owners who have not paid their taxes on time have received several notifications. Form 13 has been sent out in response to those who disregard these letters, starting the process of entering BBMP’s claim into the Deputy Registrar’s office records.

The goal of this legal action is to impose a lien on the property, making it more difficult for owners to transfer or sell it without paying the overdue taxes.

“To improve accountability and transparency, we have made the list of the top defaulters available to the public. The BBMP intends to put pressure on the defaulters to make amends by identifying and publicly humiliating them. However, this strategy hasn’t always worked well, so it’s unclear if it will work better this time around, Moudgil continued.