Govt, PSUs owe Rs 315cr in tax, service charge to BBMP

Bengaluru: Govt and public sector undertakings (PSU) owe BBMP nearly Rs 315 crore in property tax/service charges as on March 18, records show.
Bruhat Bengaluru Mahanagara Palike (BBMP) has warned that if these entities do not clear their dues by March 31, they will have to pay 100% of their dues as penalty, in cases where the dues are two or more years old, along with a 9% interest.
East Zone accounts for the highest arrears of Rs 105 crore, followed by RR Nagar with Rs 45 crore. Dasarahalli owes the lowest at Rs 1.5 crore.
At the beginning of the 2024-25 financial year, govt and PSU properties owed BBMP Rs 425. Out of this, the civic body has been able to collect a little over Rs 110 crore until March 18, according to data accessed by TOI.
While govt buildings pay BBMP service charges, which are a fraction of the property tax that private properties of the same size pay, PSUs pay property tax.
March 31 is the deadline for the One Time Scheme (OTS) for govt and PSUs to clear their property dues. It offers a full penalty and interest waiver if dues are cleared on or before March 31.
The current penalty on dues is Rs 100 per year.
"After the deadline, the penalty will be 100% for defaulters with arrears from 2023-24 or before. We urge defaulters who have not paid for years, to clear their dues and utilise OTS," Muneesh Mudgil, special commissioner (revenue), BBMP, told TOI.
While BBMP now seeks to tighten the screw on defaulters, it had not initiated any move thus far to realise dues that have been piling up with govt and PSU entities.
Tushar Giri Nath, the BBMP chief commissioner, said: "We have offered OTS to give the benefit of interest and penalty waiver. We have orders from the CM and deputy CM to increase the penalty after March 31."