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Moudgil said in the statement that all outstanding property tax dues, such as penalties, interest, and administrative expenses, will be fully recovered from the sale proceeds of the property. (Representational Photo)
The Greater Bengaluru Authority (GBA) has decided to take over properties with chronic tax arrears, saying the move will be used only as a last resort.
In a statement, GBA Special Commissioner (Revenue) Munish Moudgil said the step is aimed at addressing long-pending property tax arrears.
“Despite repeated statutory actions—including issuance of demand notices, attachment of properties, and multiple attempts to recover dues through public auction—several cases have remained unresolved due to non-payment and lack of bidder participation in auctions. In such exceptional cases, where all prescribed recovery measures have been exhausted and auctions have failed repeatedly, the City Corporation will now proceed to purchase the defaulted properties itself at the notified upset price,” he said.
Moudgil said the final recovery mechanism is being invoked only after due process. “The property will be deemed sold to the City Corporation at the pre-determined upset price,” he said.
The upset price is linked to the guidance value.
Moudgil said in the statement that all outstanding property tax dues, such as penalties, interest, and administrative expenses, will be fully recovered from the sale proceeds of the property. He added that any surplus amount after adjustment of dues will be refunded to the original property owner through bank transfer.
A final opportunity will also be provided to the defaulter. “Even at this stage, the defaulter is provided a final one-month window to clear all dues (with applicable interest), upon which the takeover order will be withdrawn and the property restored,” he said.
The move follows campaigns by Bengaluru civic bodies to clear property tax dues. In 2024, the government launched the One-Time Settlement scheme to help property tax defaulters clear dues.
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