BENGALURU: Property tax collection in the city has once again fallen short this financial year, highlighting ongoing compliance issues even as enforcement efforts are ramped up.
With only days remaining in the 2025-26 fiscal year, the collections have reached Rs 4,047.7 crore against a target of Rs 6,700 crore, resulting in a shortfall of over Rs 2,652 crore and an overall realization of approximately 60%.
The target includes outstanding amounts from previous years. As of March 20, Rs 4,047.7 crore has been collected, comprising Rs 3,286 crore in property taxes for this fiscal year, along with Rs 761.7 crore in arrears.
Authorities aimed to collect Rs 4,100.2 crore this fiscal year, with Rs 3,286 crore successfully collected but leaving Rs 814 crore uncollected. These collections were managed under both the previous BBMP administration and the five corporations formed under the Greater Bengaluru Authority (GBA) during this fiscal year.
Despite intensified recovery efforts, including property attachments and auctions, the performance has been disappointing, showing an 18.1% decline compared to last year’s Rs 4,945.4 crore, raising concerns about the city’s fiscal health amidst increasing urban infrastructure demands.
The new financial year, starting April 1, will shift responsibility to all five corporations, which will have direct accountability for generating property tax revenues to support their operations.
Officials recognize that better compliance is crucial for sustaining public spending. The performance remains inconsistent across corporations; South and East Bengaluru have performed better, each achieving around 62% of their targets, while North Bengaluru lags at just over 54%, indicating deeper compliance challenges in rapidly expanding areas. Currently, the property tax base encompasses about 21.7 lakh properties, including residential, commercial, mixed-use, and vacant plots.
With ongoing shortfalls in collections, authorities are targeting defaulters. At the beginning of the year, over 3.6 lakh properties were marked for non-payment. Enforcement measures have been tightening, with officials issuing notices, attaching properties, and initiating takeover processes in extreme cases. This year also saw the introduction of auctions as a last-resort strategy.
In a recent enforcement drive, 172 properties were identified for auction, but only seven reached the auction stage, and none sold due to low bidder interest, legal obstacles, and procedural delays.
However, the threat of auctions has deterred some property owners, with several opting to settle their dues at the last moment to prevent asset loss. In some areas, the announcement of auctions alone prompted a surge in payments, enabling authorities to recover arrears without needing to proceed with sales.
The GBA plans to escalate their enforcement by targeting properties belonging to chronic defaulters who do not respond to repeated notices. The proposal involves acquiring such properties at a set value after a final opportunity for payment.
Officials claim this move aims to recover significant long-standing dues while emphasizing compliance. Yet, the limited success of auctions so far indicates that mere enforcement may not suffice.
Regrettably, about 10% of property owners still evade payment. Out of approximately 20 lakh property owners, 18 lakh have fulfilled their tax obligations. It is essential for every law-abiding citizen and responsible taxpayer to be aware of this 10% evasion rate. The GBA and the corporations have a moral and legal duty to recover what is owed. We will persist until all dues are paid according to the law, says Munish Moudgil, Special Commissioner (Revenue), GBA.
