The Bruhat Bengaluru Mahanagara Palike uncovered around 3.7 lakh properties in the city with unpaid property taxes amounting to INR 700-800 crore. Despite reminders and auction notices issued for 6,000-7,000 properties, compliance remains poor. Authorities are now blocking e-khata accounts to stop property transactions until dues are cleared. This enforcement drive is expected to stretch over several months, aiming to recover dues and deter further evasion.
City officials recently revealed that roughly 3.7 lakh Bengaluru properties are yet to clear their property tax dues, amounting collectively to INR 700-800 crore. In response, the municipal body reissued payment reminders via SMS and email and previously served auction notices to approximately 6,000-7,000 defaulters although this step failed to prompt adequate compliance.
To enforce stricter adherence, authorities are now disabling e-khata accounts of delinquent owners, preventing them from selling or legally transferring the property until taxes are settled. Officials estimate that this e-khata block and resolution process could take four to five months to complete.
This latest enforcement surge builds on earlier efforts: the city's e-khata verification initiative, launched in late last year, had already exposed tax evasion involving nearly five lakh properties under-reporting built-up areas or misclassifying commercial spaces as residential. Through that drive, around INR 500 crore has already been recovered and another INR 500 crore is expected as reviews continue. The e-khata system now covers draft or final records of some 25 lakh properties, although BBMP currently collects taxes from only about 20 lakh of them.
Prior statistics show that earlier in the year, approximately 3.49 lakh property owners comprising 1.73 lakh chronic defaulters and 1.76 lakh current year defaulters owed an estimated INR 390 crore. BBMP ramped up notices, IVRS calls and introduced a one-time settlement scheme, yet compliance remained low. Chronic defaulters predominantly included major commercial establishments, institutions, and high-value residential properties.
Special commissioner Munish Moudgil emphasized that property owners were given ample opportunity to pay, but persistent defaulters forced the civic body to escalate action. The blocking of e-khata accounts is intended to send a strong message: non-payment cannot be ignored further.
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