Kotak Mahindra Bank: RLLR: 0.75 | From: 8.7% - To: 10.5%
Union Bank of India: RLLR: 0.5 | From: 8.5% - To: 10%
Bank of Baroda: RLLR: 0.5 | From: 9.25% - To: 11%
HDFC Bank: RLLR: 0.75 | From: 8.5% - To: 8.8%

BBMP sends tax default notices to over 2.75 lakh Bengaluru property owners

#Taxation & Finance News#Commerical#India#Karnataka#Bangalore
Last Updated : 3rd Sep, 2025
Synopsis

BBMP has sent electronic demand notices to over 2.75 lakh Bengaluru property owners for unpaid dues exceeding INR 786 crore. The notices were distributed zone-wise, with Mahadevapura recording the highest number of defaulters. Property owners have been instructed to pay or appeal through the BBMP portal, while defaulters face the risk of property attachment and distress sale. The civic body collected INR 4,604 crore last fiscal year, short of its INR 5,210 crore target. Past digital initiatives such as e-khata revealed under-reporting worth hundreds of crores. Recent reminders, restrictions on transactions, and citizen complaints over inflated notices were also part of the drive.

The Bruhat Bengaluru Mahanagara Palike (BBMP) has issued electronic demand notices to more than 2.75 lakh property owners across the city for non-payment of property tax. The total pending dues amount to over INR 786 crore. These notices were sent through the BBMP tax portal, which also allows owners to make payments or submit appeals. Property tax is the civic body's largest source of revenue and is used to fund city services such as road works, waste management, and other civic needs.


Among the city zones, Mahadevapura recorded the highest number of defaulters at nearly 65,000, followed by Bommanahalli, Rajarajeshwari Nagar, East, Yelahanka, South, West, and Dasarahalli zones. The BBMP has clarified that those who fail to clear dues face the risk of property attachment and distress sale of assets, if required. Officials also explained that while a penalty of 100% on unpaid tax is applied only if the default continues for two years or more, interest at 15% per annum is charged on overdue payments before that period.

In the last financial year, BBMP managed to collect close to INR 4,604 crore in property tax against a target of INR 5,210 crore. Over the years, the civic body has introduced several digital measures to improve compliance. The e-khata system, which was brought in to digitise property records, exposed a large number of cases where property owners had under-reported or misreported their details. This exercise alone led to recovery of around INR 500 crore and officials have said that another INR 500 crore is expected to be realised in the coming period.

In recent months, BBMP identified nearly 3.7 lakh properties with unpaid dues worth INR 700-800 crore. Reminders were sent via SMS and email, and in certain cases, e-khata accounts were restricted to prevent property-related transactions until pending dues were settled. The move was aimed at putting pressure on defaulters and ensuring higher recovery. However, many senior citizens have raised concerns that inflated notices were sent to them, particularly relating to parking spaces. They pointed out that errors in older property records and glitches in the portal had resulted in confusion and caused financial strain.

Related News

Have something to say? Post your comment

Recent Messages