Nearly 3.25 lakh property tax defaulters in the city owe the Bruhat Bangalore Mahanagara Palike (BBMP) more than Rs. 786 crore. This will touch a whopping Rs. 1,000 crore if the BBMP levies a 2 per cent penalty per month.

“On an average, Rs. 5 crore is pending from each ward. Unfortunately, verification of properties — had not been taken up for several years — has shown up huge differences as the property owners have suppressed [facts about] built-up area,” Commissioner Siddaiah told BBMP council on Wednesday.

Officials have been directed to collect this amount by the end of March. When they verified 6,370 such properties with a built-up area of more than 10,000 sq ft, they found a discrepancy of nearly Rs.200 crore.

Drumbeating ploy

In such a scenario, the BBMP was thinking of seizing the movable properties of tax defaulters. The drumbeating programme to shame defaulters has worked as they had coughed up at least part of the dues. “That apart, the officials have already prepared a list of defaulters which will be shared with the councillors. We will display these lists in the ward offices, parks, prominent public places, clubs, etc.,” Mr. Siddaiah said.

Citing an example, he said a tech park had not correctly declared its built-up area and owed BBMP Rs. 60 crore in taxes, including penalty. After a spot of drumbeating, it forked out Rs. 6 crore. Similarly, a five-star hotel in had declared only Rs. 26 lakh in taxes. But after verification, the dues were calculated at Rs. 87 lakh.

The BBMP owed Rs.1,200 crore in pending bills and civil, garbage, horticulture and electrical contractors had not been paid for nearly four months.

Advertisement tax

Though it was hopeful of garnering at least Rs. 200 crore through advertisement taxes, the collection so far has only been Rs. 46 crore. A cell has been constituted to monitor the illegal hoardings in the city.