The Hindu                14.12.2013

BBMP pins hopes on revenue from charges levied on OFCs

: The Bruhat Bangalore Mahanagara Palike (BBMP) is pinning all its hopes on the revenue that will come its way from charges levied on telecom service providers, who have laid optic fibre cables (OFC), overhead cables and copper cables in the city.

On Friday, city Mayor B.S. Sathyanarayana, BBMP Commissioner M. Lakshminarayan and members of the BBMP’s OFC Committee met stakeholders of the various telecom and internet service providers. At the meeting, sources said, a consensus was reached and service providers have now agreed to pay the charges that would be arrived at jointly by the BBMP and service providers soon.

According to committee member and Yediyur councillor N.R. Ramesh, the BBMP has laid down some conditions that the service providers are expected to follow. “Service providers have said they will get back to us after consulting their legal team. They have asked for some changes in the conditions, which we will also verify with our legal team,” he said.

The BBMP has given service providers two days’ time to declare the cables laid by them. According to rough estimates, there are nearly 65,000 km of OFC network, 10,000 km of overhead cables, 7,000 km of copper cables and over 3,000 km of cables laid through the direct buried cable (DBC) method. “After service providers declare the cables laid, we will verify it. If there is any undeclared cable, the BBMP will take it over and sell it in an open auction. This will be another source of revenue for the civic body,” he said.

The BBMP has also put the entire OFC permission and cancellation mechanism on an online platform. “A software was developed for this. This means service providers need not approach any BBMP office for permission. The applications will be accessed online and permissions will be given online after requisite inspections by officials. This is completely transparent and payment can be made through direct bank transfers,” he added.

The Times of India            13.12.2013

BBMP warrants make defaulters pay tax dues

BANGALORE: If you have not paid your property tax, be ready for this: BBMP men will storm into your property, confiscate valuables on the premises and sell the same to recover the dues.

On Thursday, a team of BBMP tax officials arrived at the doorsteps of three traders in CBD areas. They threatened to slap "distress warrants" on the defaulters by invoking Section 147 of the Karnataka Municipal Council Act. The warrant empowers the BBMP to confiscate movables on the premises in lieu of the tax dues. The result: the three defaulters paid up a total of Rs 15.25 lakh in less than 45 minutes. They refused to even accept the notices and wrote cheques to avoid further embarrassment.

The drive began with a top bathroomfixtures company off Queen's Road. The accounts manager promptly wrote a cheque for Rs 8.65 lakh, the amount unpaid for years. "It was our mistake that we did not pay tax," he said. The manager paid Rs 1.5 lakh as penalty for delayed payment.

"If the defaulters understand their responsibility and pay us the tax dues, it's fine. Otherwise, such notices are inevitable," said Prasanna Kumar, revenue officer, Shivajinagar, who headed the drive. Will seek police aid: Palike Tax Dues Are Mounting & Our Coffers Are Empty, Says BBMP

As of now, we haven't gone to the extent of taking away movables. If our visit to the defaulter's properties causes a law-and-order problem, we will take police support," said Prasanna Kumar, revenue officer, Shivajinagar.

Pulled up by the high court, the BBMP has apparently dumped its drum-beating campaign to name and shame property tax defaulters. At a hearing of a Wipro petition against the BBMP's tax claim, the court had called the drum-beating drive uncivilized.

The defaulters gave different reasons for not paying the tax. "I have the show-cause notice. Don't issue me any other notice. I am paying a large portion of dues anyway. I could not pay so far because I was busy in my business," said a bag dealer on Commercial Street who owns a three-storey building.

The trader, whose tax dues totalled Rs 3.04 lakh, paid Rs 2.05 lakh on seeing the distress warrant. He still has to pay Rs 1.52 lakh for 2013-14.

The BBMP has targeted a tax collection of Rs 1,800 crore during 2013-14. So far, it has collected Rs 1,100 crore; the balance Rs 700 crore has to be mopped up in less than four months.

BBMP officials said the property tax dues are mounting, the civic body's coffers are empty and the Palike owes Rs 1,600 crore to contractors and Rs 3,000 crore to lenders. Besides, the Palike's ongoing works are budgeted at Rs 2,500 crore.

What a distress warrant means