BENGALURU: After exhausting all venues of recovering property tax arrears, city corporations will now acquire the properties of chronic defaulters as a last-resort recovery measure. If the notices, attachments and auctions fail, the properties will be purchased at upset prices, with dues adjusted and the surplus refunded.
Before this, however, defaulters will get a final one-month window to clear arrears before the property takeover, aimed at improving revenue recovery and compliance.
According to Greater Bengaluru Authority Special Commissioner (Revenue) Munish Moudgil, the step will be invoked only after all statutory procedures have been exhausted. These include issuing demand notices, attaching properties and conducting multiple public auctions.
In exceptional circumstances, like when cases remain unresolved due to continued non-payment and lack of bidder participation, city corporations will purchase the defaulted properties at a pre-determined upset price linked to the guidance value. This measure ensures that long-pending dues are recovered while maintaining procedural fairness, he said.
Moudgil said under the mechanism, the sale proceeds will first be used to clear all outstanding property tax dues, including penalties, interest and administrative expenses. Any surplus amount remaining after adjustment will be refunded to the original property owner through bank transfer.
Once acquired, the property will vest with the city corporation free of encumbrances, and ownership records will be updated accordingly, the official said.
Authorities stressed that even at this stage, defaulters will be given a final one-month window to clear all pending dues with applicable interest. If payment is made within this period, the takeover order will be withdrawn and the property restored to the owner.
Issuing a public advisory, the authority urged citizens to promptly clear their property tax dues to avoid coercive measures. The move, officials said, aims to improve municipal revenue collection, enforce fiscal discipline and ensure fairness among compliant taxpayers.