Bengaluru: Property tax collections in the city have again fallen short of expectations this financial year, exposing persistent gaps in compliance even as authorities intensify enforcement.With just days left for the close of the 2025-26 fiscal, property tax collection stood at Rs 4,047.7 crore against a target of Rs 6,700 crore. That leaves a shortfall of over Rs 2,652 crore, with overall realisation at roughly 60%.The target was inclusive of arrears from previous years. And, the Rs 4,047.7 crore collected as of March 20, includes Rs 3,286 crore of property taxes of this fiscal, and Rs 761.7 crore collected in arrears from previous years.For this fiscal, authorities have raised a demand of Rs 4,100.2 crore, and collected Rs 3,286 crore, leaving Rs 814 crore unrealised. The collections were done both under the administration of the erstwhile BBMP and the five corporations under the Greater Bengaluru Authority (GBA), which was formed in the middle of the fiscal.The underperformance comes despite a year marked by stepped-up recovery drives, including property attachments and the introduction of auctions. Data also shows an 18.1% decline in collections compared to the previous year’s Rs 4,945.4 crore, raising concerns over the city’s fiscal capacity at a time when urban infrastructure demands are rising.The new financial year, beginning on April 1, will mark a shift in responsibility, with all five corporations directly accountable for mobilising property tax revenues to fund their operations.Officials acknowledge that improving compliance will be critical to sustaining civic spending. Across corporations, the picture remains uneven. South and East Bengaluru have performed relatively better, each crossing about 62% of their targets.North Bengaluru, however, lags at just over 54%, reflecting deeper compliance issues in rapidly expanding areas. Bengaluru’s property tax base now covers about 21.7 lakh properties, spanning residential, commercial, mixed-use, and vacant plots.With persistent shortfall in collections, authorities have focused on defaulters. At the start of the year, over 3.6 lakh properties were flagged for non-payment. Enforcement has steadily tightened. Officials have issued notices, attached properties, and, in extreme cases, initiated takeover proceedings. Auctions, introduced this year as a last-resort measure, mark a significant escalation.In one such drive, 172 properties were identified for auction across corporations. Yet, only seven properties reached the auction stage, and none was ultimately sold. Officials attribute this to a mix of weak bidder participation, legal hurdles, and delays in the process.Even so, the threat of auctions appears to be working as a deterrent. In several cases, property owners cleared dues at the last minute to avoid losing their assets. In some zones, merely announcing auctions triggered a rush of payments, helping authorities recover arrears without completing sales.The GBA is now preparing to go a step further. Plans are underway to take over properties of chronic defaulters who fail to respond even after repeated notices and enforcement actions. Under the proposal, such properties would be acquired at a predetermined value after a final window for payment.Officials say the move is aimed at recovering large, long-pending dues while sending a clear signal on compliance. But the limited success of auctions so far suggests that enforcement alone may not be enough.——-Quote:Sadly some 10% people still don’t pay. Out of about 20 lakh property owners, 18 lakh have paid and these 2 lakh must pay. Every law abiding citizen and honest tax payer needs to know that there are these 10% tax evaders and it’s the moral and legal duty of GBA and the corporations to recover from them. We will not stop until all tax dues are paid as per law.— Munish Moudgil | Special Commissioner (Revenue), GBA——Graphic: South performs best Corporations Target 2025-26 (Rs cr)Collection (Rs cr)Percentage collectionSouth 1,228.8779.763.4%East1,673.51,053.762.9%West1,281.6791.461.7%Central 1,273.8 746.758.6%North 1,242.3676.154.4%Total 6,70004,047.760.2%Source: GBA | * As of March 20 | Figures rounded off
