BBMP struggles with cash crunch as government buildings default (Rs 660 cr) on property tax

Bengaluru’s civic body, the Bruhat Bengaluru Mahanagara Palike (BBMP), is facing a financial crisis due to unpaid property taxes from over 250 government buildings, including Vidhana Soudha, Vikasa Soudha, and Raj Bhavan. The outstanding dues, accumulated over 17 years, amount to approximately ₹660 crore.

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Despite repeated notices, these government institutions have failed to clear their arrears, adding to BBMP’s fiscal woes. While private property owners face stringent recovery measures, including the auctioning of their properties, similar action against government buildings remains stalled.

To encourage payments, BBMP had introduced a One-Time Settlement (OTS) scheme that waived compound interest and reduced penalties by 50%. However, none of the government agencies availed the benefit before the scheme lapsed. Now, officials are intensifying their efforts, issuing fresh reminders and compiling lists of top defaulters across all eight BBMP zones.

The delay in tax collection has exacerbated BBMP’s cash crunch, impacting essential civic projects and services. With private defaulters facing harsh penalties, the lack of action against government properties raises concerns over financial accountability. While the civic body remains firm on recovering dues, it remains unclear whether stringent measures will be taken against government-owned establishments.

As BBMP continues its pursuit, the mounting arrears highlight the need for stricter enforcement, ensuring that public institutions fulfill their tax obligations to sustain the city’s infrastructure and services.