Rs 7.20 Crore Property Tax Gap Found On Indiranagar’s 100-ft Commercial Stretch

The Greater Bengaluru Authority’s central city corporation has uncovered property tax discrepancies amounting to Rs 7.20 crore. This occurred in Bengaluru’s Indiranagar 100-ft road, which is the city’s most commercially valuable street. These findings emerged after a targeted audit of commercial establishments and mixed-use properties were alleged to under-declare the built-up areas, usage categories and rental values.

According to officials involved in this assessment, the discrepancies arise from businesses declaring residential rates while engaging in commercial activities. The Indiranagar 10--ft road is known for its high-end restaurants, boutiques and offices. This street has seen a rapid commercialisation in the past decade, making it a prime spot for tax leakage.

What Were the Findings of the Audit

This audit was conducted as part of the corporation’s broader property tax rationalisation drive. This drive aimed to plug revenue losses across the city’s busiest localities.

A senior official said that techniques, such as drone surveys, mapping, and on-ground inspections played a significant role in addressing these tax leakages. Several establishments were even found paying tax for one floor while occupying and functioning on multiple floors.

The Rs 7.20 crore figure is just a cumulative shortfall, which can be expected to rise if and when more properties are examined. For now, the corporation has issued notices to the faulty owners and asked them to provide updated documentation and clear their dues with penalties, wherever applicable.

If owners fail to pay within the given window, properties may face attachment proceedings or legal action.

This audit has received a mix of reactions; some business owners accepted the terms and expressed willingness to rectify the changes, while others argued that the corporation’s sudden enforcement did not take into account the fluctuating business conditions. Some even showed hostility and plan to contest notices, claiming that the assessments are inflated and incorrectly calculated.

The corporation has said that this tax discrepancy is not just limited to Indiranagar, but is a part of a systematic issue in fast-growing urban commercial hubs. Many properties transform from residential to commercial and don’t disclose this to the authorities. The corporation’s current audit drive signals a shift towards stricter compliance and better revenue management in urban areas.

Residents have welcomed the move, terming it as a sign of fairness. For long, homeowners have complained that these commercial establishments enjoy disproportionate advantages and also pay less tax dues than they are supposed to.