Greater Bengaluru Authority Targets Big-Ticket Property Tax Evaders Amid Rs 3,100-Crore Revenue Shortfall

The Greater Bengaluru Authority (GBA) is preparing to launch its most aggressive property tax recovery drive as the city faces a massive Rs 3,100 crore shortfall in property taxes. According to GBA officials, this gap is largely fuelled by severe underassessment, commercial misuse of residential properties, and deliberate evasion by high-value property owners. This crackdown will mark a shift from years of leniency to a stable enforcement of tax commitments.

The same source mentions that this shortfall is not led by ordinary homeowners but by large-scale offenders, tech parks, commercial complexes, and high-end residential developments where tax records are not in sync with actual usage or built-up area. These findings were revealed after several internal audits conducted over the past quarter. These came from areas where rapid construction has outpaced the updates in the tax registry.

The authority plans to deploy a combination of GIS mapping, drone surveys, door-to-door inspections, and even digital cross-verification with electricity, water, and building plan data. This data-backed approach is introduced with the aim of eliminating loopholes that have long been exploited by commercial establishments that continue to pay residential tax even after conducting commercial activities in them.

Another reason for this massive revenue leak is due to unauthorized expansions. In many cases, properties with multiple floors or extended basements continue to be taxed as per the original sanctioned plan, and the difference is not nominal. Officials say Bengaluru's evolving real estate patterns have significantly widened this gap, especially due to unauthorized constructions.

As a way to pressure these high-value defaulters, the authority will issue final notices, which will be followed by penalty imposition, property attachment, and disconnection from civic services. The city's legal division is on its way to fast-track these proceedings for the top 500 defaulters, which include large developers, corporate landlords, and institutional owners. This is a step taken after voluntary compliance has failed, and punitive measures are unavoidable.

This crackdown is expected to have several political implications as well. Bengaluru's civic administration has been criticized for years for failing to streamline its property tax regime. The city is on the fastest route to development, but the administrative segment is not coping with it.

While the volume of properties has risen, the tax collection schemes have not kept pace. The primary reason suggested is due to inconsistent assessment practices and weak enforcement. GBA says this correction was long overdue and can restore the financial health of the city if it can be implemented without political interference.

With the crackdown that is set to roll out in phases, the next few months are a determining factor in whether Bengaluru can close this widening property tax gap. As of now, the message from the authority is clear: major evaders will no longer be able to exploit the loopholes.