BENGALURU: The Bruhat Bengaluru Mahanagara Palike (BBMP) has made significant strides with its newly launched e-Khata system, aimed at eliminating fraudulent property transactions and the fabrication of documents. Since its implementation on October 1, 2023, the system has uncovered substantial property tax evasion, recovering an impressive Rs 500 crore.
BBMP officials highlight that the final e-Khata requests have exposed inconsistencies indicating considerable underreporting of property sizes and the inappropriate application of residential tax rates on commercial properties. These vulnerabilities, previously exploited through self-declaration, are now being addressed.
Over 5.5 lakh e-Khatas Issued
Since the introduction of the e-Khata system, more than 5.5 lakh final e-Khatas have been processed, with an additional 25 lakh draft e-Khatas accessible online for public view.
As per BBMP guidelines, every property under its jurisdiction must now be registered with the e-Khata system.
A BBMP representative stated that property owners are required to submit various documents, including an Aadhaar card, sale deed, property tax ID, Bangalore Electricity Supply Company (BESCOM) electricity connection number, and property photographs to obtain a final e-Khata.
“These documents assist in verifying the actual dimensions and usage of each property, enabling BBMP to cross-check for reported discrepancies,” the official explained.
Widespread Evasion Discovered
The evaluation of documents for e-Khata registration has uncovered that many property owners had misused the self-declaration tax system by inaccurately reporting property sizes or opting for residential tax rates on commercial properties.
To date, BBMP has recovered Rs 500 crore due to these violations. Approximately 5 lakh properties have been found to have reported incorrect measurements and subsequently paid lower taxes. This scrutiny through the e-Khata system is vital for addressing revenue shortfalls.
Projected Revenue Increase
For the current financial year (2025–26), BBMP aims to collect Rs 6,256 crore in property taxes. So far, it has gathered Rs 2,966 crore, with officials anticipating an additional Rs 1,000 crore from the e-Khata system in the upcoming months.
Unlisted Properties Causing Losses
A BBMP official noted that property tax accounts for a significant portion of BBMP’s revenue. “Although over 25 lakh properties have been identified, only around 20 lakh contribute to tax revenue. This discrepancy indicates a considerable loss, amounting to crores,” said the official.
In many cases, properties have been overlooked for taxation. “BBMP is now leveraging the e-Khata system to locate and tax such properties,” the official added.
Unanswered Recovery Notices
Despite attempts to engage defaulters through notices, IVRS calls, personal visits, and physical reminders, many remain unpaid. Among 20.57 lakh property owners in 2024–25, roughly 3.49 lakh have not fulfilled their tax obligations.
This group includes 1.73 lakh long-term defaulters and 1.76 lakh from the previous year, collectively owing Rs 390 crore.
