Property owners in Bengaluru who fail to clear tax dues for two consecutive years will now face 100% penalty (equal to the unpaid amount), along with an annual interest of 9%. The move, expected to impact around two lakh habitual defaulters, is part of a stricter enforcement drive by the city’s civic body.
The penalty provision comes under the BBMP (Amendment) Act, 2024, introduced through a government notification issued in March last year but recently brought to public attention by a former councillor, N.R. Ramesh. Section 6 of the Act outlines the consequences for failing to pay property tax on time.
Officials argue that the measure is necessary to push long-term defaulters to settle their dues. However, critics warn that the hefty fines may discourage payment altogether, making recovery even more difficult. Mr. Ramesh said this order would lead to harassment of owners and make citizens avoid making payments.
According to the amendment, any property owner missing the payment deadline will incur an annual interest of 15% on the overdue amount until it is settled. Those who default for two consecutive years will face a penalty equal to the unpaid tax from the second year onward, in addition to the 9% interest.
For instance, if a property owner owes ₹1 lakh, they will now have to pay ₹2 lakh plus interest. This rule also applies retroactively to defaulters who have not cleared dues as of April last year.
Officials emphasised that the stringent penalty targets property owners who have consistently ignored settlement options like the one-time settlement (OTS) scheme despite multiple notices.
Published – March 19, 2025 10:42 pm IST