6,069 buildings with high tax arrears to be sealed

Bengaluru: It has been decided to seal the commercial shops with high property tax arrears in the BBMP area. In addition, preparations have been made to seize and sell the properties.

Property tax is the main source of income for the corporation. However, tax collection has become a challenge. Over Rs 520 crore of tax is yet to be collected in cases where crores of rupees have been pending tax arrears for many years and tax evasion has been done by declaring wrong area under the self-declared property tax system. Under the One Time Settlement (OTS) scheme, the arrears were allowed to be paid without penalty and interest. However, lakhs of property owners did not come forward to pay the arrears. In these cases, Rs 329.15 crore is due from 2.06 lakh owners. Reputed companies, malls, builders, educational institutions and influential individuals are the defaulters in large numbers without paying taxes.

Munish Moudgil, Special Commissioner of the Revenue Department of the Corporation, has issued strict instructions to all the zone commissioners to make a list of commercial buildings with the highest tax arrears and seal them. ‘Tax should be collected from the defaulters with the highest arrears in all the 8 zones of the Corporation at the earliest. Similarly, commercial buildings should be sealed and action should be taken to recover the tax,’ he warned.

The defaulters should recover the tax by sealing the properties in tax revision cases and confiscating them and selling them. He said that Rs 191 crore is due from 9 thousand properties in tax revision cases.15 properties with the highest tax arrears in the Bommanahalli zone have been sealed and a proposal is being prepared for confiscation and sale. 77 buildings have been locked in the east zone, 68 in the west zone, 10 in RR Nagar, 5 in Yelahanka, 12 in Dasarahalli, 20 in Mahadevapura and 15 non-residential buildings in the south zone.