Bengaluru: Watch out if you have not yet cleared your property tax dues with Greater Bengaluru Authority (GBA). You could lose your cherished unit through a public auction.In a first-of-its-kind crackdown on defaulters, GBA on Saturday 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 ₹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 D K 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. TOI was present at the auction in East City Corporation. In K R Puram division, 25 defaulter properties — including one valued at ₹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 One was withdrawn after it was found to be encroaching on a stormwater drain. Inset Box-1:Under the hammer 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. Inset Box-2: Quotes“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 | Resident, Binnamangala “It may be exciting for a buyer to pick up a property at a good price, but it is painful for the original owner to lose it. Many of these units appear to belong to middle-class families. I hope the corporations take similar action against large builders and wealthy defaulters.” Yele Srinivas | Resident, K R Puram “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 Moudgil | Special commissioner (revenue), GBA Info gfx: * Rs 437 crore in property tax arrears pending across nearly 7,000 units under GBA * 172 units listed for auction: 25 (East), 107 (North), 40 (Central)* 7 properties auctioned on Saturday — 5 in East, 2 in North* In K R Puram division alone, 25 defaulter properties were put up for bidding, including one valued at ₹17.94 crore* As auctions began, 19 of 25 owners in KR Puram cleared their dues
