BENGALURU: After exhausting all available options to recover property tax dues from defaulters, the city corporations have initiated steps to purchase 158 defaulted properties. Those with the highest dues and which have not found any bidders in auctions (distress sale), will be taken over by the corporations at a pre-determined upset price (linked to guidance value).
There are 52 such properties under Bengaluru South City Corporation, 55 under West Corporation and 51 in East Corporation, according to press release from the three Corporations.
Corporations said chronic defaulters were issued repeated notices, property attachments warnings and public auction notices, and that there was no response from the owners. In cases where all recovery measures have been exhausted and auctions failed repeatedly, the city corporations will purchase the defaulted property at the notified upset price.
After purchase of such properties and recovering pending property tax, penalties, interest and administrative costs, the remaining amount would be transferred to the owners. The properties will vest with the city corporations free of encumbrances, and ownership records will be updated.
As a final option, corporations said they would give a one-month window to clear all dues, and if payment is made, the takeover process will be withdrawn and the property restored.