Bengaluru Property Tax Defaulters Face Auction: 7 Units Sold in GBA Crackdown

Property owners in Bengaluru who have not cleared their tax dues with the Greater Bengaluru Authority (GBA) should be on high alert. In an unprecedented move, the civic body has initiated public auctions of properties to recover long-pending arrears, with seven units already sold off in the East and North City Corporation limits this past Saturday.

First-of-Its-Kind Action Against Defaulters

Despite repeated notices and recovery drives by the erstwhile Bruhat Bengaluru Mahanagara Palike (BBMP) and the five newly formed corporations under GBA, thousands of owners continue to default on tax payments. With outstanding dues soaring to a staggering ₹437 crore across nearly 7,000 properties in the city, authorities have resorted to property auctions as a final measure.

Of the 172 properties listed for auction—25 in East, 107 in North, and 40 in Central—five units in East and two in North were successfully auctioned. Properties in Central failed to attract bidders, highlighting the selective nature of the crackdown.

Strong Stance from Deputy Chief Minister

Deputy Chief Minister D K Shivakumar took a firm stand on the issue, pointing out that even some former legislators own properties, collect rent, but fail to pay taxes. "If they are earning rent and not paying tax, what should the corporation do? Such properties will also be auctioned," he cautioned, emphasizing that no one is above the law.

The auction at the East City Corporation was witnessed by TOI, where in the K R Puram division alone, 25 defaulter properties—including one valued at ₹17.9 crore, the highest on the list—were put under the hammer in the presence of Joint Commissioner Sudha. As bidding commenced, 19 property owners rushed to clear their dues, leaving five properties to be sold. One property was withdrawn after it was found to be encroaching on a stormwater drain.

Transparent Auction Process

Under the hammer, the five city corporations under GBA notified properties that had been on the tax default list for an extended period, despite multiple notices and field visits by authorities. "Only after multiple reminders were those properties put up for auction," explained Munish Moudgil, GBA Special Commissioner (Revenue).

Bidders were required to submit a demand draft for ₹1 lakh prior to participation. The winning bidder must pay 15% of the final bid amount on the same day, with a sale certificate issued within seven days. Within 45 days, the property will be transferred and registered in the name of the successful bidder. "Once auctioned, the original owner cannot reclaim the property," clarified the joint commissioner.

Public Reactions and Perspectives

Sandeep Shantakumar, a resident of Binnamangala, shared: "I hadn't planned to buy a property today. I came here out of curiosity, but decided to participate in the bidding. It turned out to be a good deal. As builders and landlords, we are always looking for investment opportunities. Since this is a government auction under GBA, we trust the process to be transparent, giving us the confidence to go ahead."

Yele Srinivas, a resident of K R Puram, expressed concern: "It may be exciting for a buyer to pick up a property at a good price, but it is painful for the original owner to lose it. Many of these units appear to belong to middle-class families. I hope the corporations take similar action against large builders and wealthy defaulters."

Munish Moudgil, Special Commissioner (Revenue) of GBA, reiterated the authority's commitment: "We are not going to stop until every paisa of tax due is recovered. Unpaid dues will eventually catch up with you. Why should 20% of defaulters burden the system when 80% of citizens are honestly paying their taxes?"

Key Statistics from the Auction

₹437 crore in property tax arrears pending across nearly 7,000 units under GBA.
172 units listed for auction: 25 in East, 107 in North, and 40 in Central.
7 properties auctioned on Saturday—5 in East and 2 in North.
In K R Puram division alone, 25 defaulter properties were put up for bidding, including one valued at ₹17.94 crore.
As auctions began, 19 of 25 owners in KR Puram cleared their dues, demonstrating the urgency sparked by the crackdown.

This aggressive move by GBA signals a new era of accountability in Bengaluru's civic governance, aiming to ensure that tax compliance is enforced uniformly across all property owners, from middle-class families to wealthy landlords and former legislators.