Bengaluru Property Auction Spurs Defaulters to Pay Rs 27 Lakh in Dues
Bengaluru Auction Fears Recover Rs 27 Lakh from Defaulters

Bengaluru Property Auction Threat Drives Swift Payment of Over Rs 27 Lakh in Dues

The announcement of a property auction by the Greater Bengaluru Authority's South city corporation has triggered a rapid response from tax defaulters in Bommanahalli. Fearing the public sale of their assets, approximately 14 property owners rushed to settle long-pending dues, leading to the recovery of more than Rs 27 lakh in outstanding taxes.

Auction Fears Prompt Preemptive Settlements

The looming threat of properties being sold through public auction appears to be a powerful motivator for defaulters to clear their arrears even before the bidding process begins. This development follows the successful auction of seven properties by the East and North city corporations in a recent sale, demonstrating the effectiveness of this enforcement strategy.

All five city corporations under the Greater Bengaluru Authority are now proceeding with auctions of top tax defaulters as a final measure to recover pending taxes. This marked the fourth auction conducted this month across multiple locations, with GBA officials committed to continuing this approach for properties with unresolved dues.

South Corporation's Targeted Approach

According to KN Ramesh, commissioner of the South city corporation, the civic body had identified 50 residential and non-residential properties with total outstanding dues amounting to nearly Rs 1.1 crore. Proclamation orders were served to all listed properties, with the auction scheduled between 11am and 1.30pm on Friday.

Remarkably, before the auction could commence, 14 property owners cleared their dues through both challan and online payment methods. Commissioner Ramesh promptly directed assistant revenue officers to issue official endorsements formally removing these properties from the auction list, acknowledging their compliance.

Inconclusive Auction for Remaining Defaulters

Despite these successes, the remaining 36 defaulters failed to clear their outstanding amounts. Although the auction was formally called, no bidders came forward to pay the required deposit or place bids, leaving the process inconclusive. Commissioner Ramesh confirmed that preparations are already underway to conduct a re-auction of these remaining properties in the coming days.

This pattern suggests that while the auction threat effectively motivates some property owners to settle their dues, others may be gambling on the possibility that bidders will not materialize. The civic authorities now face the challenge of ensuring future auctions attract sufficient interest to create genuine pressure on persistent defaulters.