City Corporations to Acquire Properties of Chronic Tax Defaulters

The Greater Bengaluru Authority (GBA) has introduced a final-stage recovery mechanism enabling City Corporations to take over properties of chronic property tax defaulters after all statutory recovery efforts have failed.

Key Details:

• Last-Resort Measure:

लागू only after demand notices, property attachment, and repeated failed auctions

• Corporation Acquisition:

Defaulted properties will be purchased by the City Corporation at the notified upset price (linked to guidance value)

• Recovery of Dues:

Property tax arrears, penalties, interest, and administrative costs will be recovered from sale proceeds

• Refund Provision:

Any surplus amount will be refunded to the original property owner (khatedar) via bank transfer

• Ownership Transfer:

Property will vest with the City Corporation free of encumbrances

• Official ownership records will be updated

• Final Opportunity for Defaulters:

A one-month window is provided to clear dues before takeover is enforced

Public Advisory:

• Citizens are advised to clear property tax dues promptly

• The initiative aims to:

Strengthen revenue collection

• Ensure fairness among taxpayers

• Improve fiscal discipline