City Corporations to Take Over Chronic Property Tax Default Properties

The Greater Bengaluru Authority (GBA) has introduced a final recovery mechanism allowing City Corporations to take ownership of properties belonging to chronic property tax defaulters after all statutory recovery steps have failed.

Key Details:

• Applicable only in exceptional cases where:

Demand notices have been issued

• Properties have been attached

• Auctions have failed repeatedly due to no bidders

• Corporation Purchase Mechanism:

Property will be acquired by the City Corporation at the notified upset price (linked to guidance value)

• Recovery of Dues:

Outstanding property tax, penalties, interest, and administrative costs will be deducted from sale proceeds

• Refund Provision:

Any remaining balance will be refunded to the original property owner (khatedar) via bank transfer

• Ownership Transfer:

Property will vest with the City Corporation free of encumbrances

• Ownership records will be updated accordingly

• Final Opportunity for Defaulters:

A one-month window is provided to clear all dues

• If dues are cleared, the takeover process will be withdrawn

Public Advisory:

• Property owners are urged to clear pending dues promptly

• The measure is intended to:

Improve municipal revenue recovery

• Ensure fairness among compliant taxpayers

• Strengthen fiscal discipline

Important Date:

• Announced on March 23