Blurb: This action has put a break on people enjoying government facilities without paying the prescribed taxes
CH NEWS
BENGALURU
In a first-of-its-kind crackdown on defaulters, GBA auctioned off seven properties in the East and North City Corporation limits to recover long-pending tax arrears.
Despite repeated notices and recovery drives by the erstwhile BBMP and the five newly formed corporations under GBA, thousands of owners continue to default on tax payments. With tax dues touching Rs 437 crore across nearly 7,000 units in the city, civic authorities have turned to property auction as a last resort.
Of the 25 properties listed in East, 107 in North and 40 in Central, five units in East and two in North were auctioned off, while those in Central failed to attract bidders.
Taking a strong stand on property tax arrears, Deputy Chief Minister DK Shivakumar said some former legislators own properties, collect rent, but fail to pay taxes. If they are earning rent and not paying tax, what should the corporation do. Such properties will also be auctioned, he cautioned. In KR Puram division, 25 defaulter properties, including one valued at Rs 17.9 crore, the highest on the list, were put under the hammer in the presence of Joint Commissioner Sudha.
As bidding commenced, 19 property owners rushed to clear their dues. Eventually, five properties were sold. One was withdrawn after it was found to be encroaching on a stormwater drain.
The five city corporations under GBA notified properties that were on the tax default list for long, even after multiple notices to the owners and field visits by the authorities. Only after multiple reminders were those properties put up for auction, said Munish Moudgil, GBA Special Commissioner (Revenue). Bidders had to submit a demand draft for Rs 1 lakh prior to participation. The winning bidder is required to pay 15% of the final bid amount on the same day. A sale certificate will be issued within seven days, and within 45 days, the property will be transferred and registered in the name of the successful bidder. Once auctioned, the original owner cannot reclaim the property, the Joint Commissioner clarified.
I hadn’t planned to buy a property today. I came here out of curiosity, but decided to participate in the bidding. It turned out to be a good deal. As builders and landlords, we are always looking for investment opportunities. Since this is a govt auction under GBA, we trust the process to be transparent, giving us the confidence to go ahead, Sandeep Shantakumar, Binnamangala resident.
‘No stopping until every paisa of tax due is recovered’
“We are not going to stop until every paisa of tax due is recovered. Unpaid dues will eventually catch up with you. Why should 20% of defaulters burden the system when 80% of citizens are honestly paying their taxes,” Munish Moudgilm, Special Commissioner (Revenue).
