BBMP’s e-Khata system uncovers massive property tax evasion, boosts revenue by ₹500 crore

The Bruhat Bengaluru Mahanagara Palike (BBMP)’s digital e-Khata initiative, launched on October 1, 2023, has emerged as a game-changer in tackling property tax evasion. Designed to curb fraudulent transactions and misuse of tax classifications, the system has already helped the civic body recover ₹500 crore from tax defaulters.

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Property owners applying for e-Khatas are required to submit a series of documents, including Aadhaar cards, sale deeds, BESCOM electricity numbers, and property photographs. This data has enabled BBMP to detect widespread discrepancies—especially instances where commercial properties were wrongly taxed under residential slabs, or where property dimensions were under-reported.

Since implementation, BBMP has issued over 5.5 lakh final e-Khatas and made 25 lakh draft versions publicly accessible online. Officials estimate that nearly 5 lakh properties had inaccurately declared measurements or usage types under the earlier self-declaration system.

The digital scrutiny is proving vital in plugging revenue leaks. In the current financial year (2025–26), BBMP has already collected ₹2,966 crore out of a ₹6,256 crore target. The e-Khata system is expected to add another ₹1,000 crore.

However, tax compliance remains a challenge. Of 20.57 lakh registered properties in 2024–25, around 3.49 lakh remain defaulters, including 1.73 lakh long-term cases. Together, they owe ₹390 crore. Despite recovery notices, IVRS calls, and visits, many owners remain unresponsive.

The e-Khata system now stands central to BBMP’s strategy to identify, verify, and bring unlisted or non-compliant properties into the tax net.