BENGALURU: Despite implementing a one-time settlement (OTS) scheme waiving interest and penalties on pending property taxes, the Bruhat Bengaluru Mahanagara Palike (BBMP) failed to meet its Rs 5,210 crore target for the current financial year.
Now, BBMP has set an ambitious target of `5,600 crore for property tax collection in 2025-26. Under the OTS scheme, over two lakh property owners have yet to clear their dues. As a result, BBMP has initiated measures to seize and auction defaulters’ properties. Even after such actions, the civic body fell short of its 2024-25 collection goal.
New strategies
According to officials BBMP plans to collaborate with BESCOM to access data on commercial buildings. Some properties have been misclassified as residential units to pay lower taxes. By obtaining accurate data, BBMP aims to bring 2-3 lakh properties under the tax net. Officials estimate that by integrating new properties and correcting underreported ones, BBMP could generate an additional ₹1,000 crore in property tax revenue, helping achieve the `5,600 crore target.
Seizures and auctions
An official said, “In 2024-25, BBMP seized 9,000 properties of tax defaulters and attached the bank accounts of 83,000 property owners. Over 600 properties were auctioned, contributing to tax revenue. By February 2025, the civic body had collected around ₹3,500 crore in property tax, which has now increased to `4,500 crore.”
