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7 properties auctioned in Bengaluru as tax dues soar to Rs 437 crore for 7,000 properties

Deputy Chief Minister D K Shivakumar said that apart from small houses, 80% of the commercial property owners have not paid taxes for more than 7-8 years.

Of the properties listed across East, North, and Central zones, five properties in East and two in North were successfully auctioned, while Central zone properties drew no bidders.Of the properties listed across Bengaluru East, North, and Central zones, five properties in East and two in North were successfully auctioned, while Central zone properties drew no bidders.

In a landmark move, the Greater Bengaluru Authority (GBA) auctioned seven properties across East and North City Corporation limits to recover long-overdue tax arrears. The action comes as tax dues have ballooned to Rs 437 crore across nearly 7,000 properties, prompting civic authorities to resort to property auctions after repeated notices failed to compel defaulters.

Of the properties listed across East, North, and Central zones, five properties in East and two in North were successfully auctioned, while Central zone properties drew no bidders.

One property was withdrawn after it was found encroaching on a stormwater drain.

In the East division, one property was valued as high as Rs 17.9 crore, and 19 defaulters rushed to clear their dues once bidding commenced. Five properties were ultimately sold.

Deputy Chief Minister and Bengaluru Urban Development Minister D K Shivakumar said that apart from small houses, 80 per cent of the commercial property owners have not paid taxes for more than 7-8 years.

“These people are not poor but are rich. There are some former MLAs, and I don’t want to name them. If the property tax is not paid, how should we proceed? We had introduced an OTS (One Time Settlement) scheme to give them an opportunity. I do not interfere in tax collection. We provided OTS out of humanitarian concern, and we know how beneficial it has been for people. If they don’t utilise it, what should the corporation do? Some people paid 35 per cent for building plan approval but haven’t paid the remaining 75 per cent and have gone to court,” he added.

Stating that the GBA has collected Rs 1,200 crore in property tax through the OTS scheme, D K Shivakumar said that none will be spared.

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When asked why action was not being taken against Mantri Mall, which allegedly owes Rs 35 crore in dues, while others are being targeted, he replied: “I had their premises locked, following which he (the mall owner) paid Rs 8 crore. The court has granted him some more time. A balance of Rs 20 crore is still pending, and it would be collected.”

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