August 15, 2024: The Bruhat Bengaluru Mahanagara Palike (BBMP) has been authorised to attach bank accounts of property tax defaulters as part of its arrears-recovery process, according to a notification issued by the Karnataka government on August 13, 2024, under the BBMP (Property Tax Assessment, Recovery, and Management) Rules-2024, as per media reports.
Earlier, the BBMP officials were authorised to only issue demand notices for tax payment and seal the premises of defaulters. However, this process involved legal challenges since several defaulters would seek court interventions.
Once the civic authority verifies the bank details of the property tax defaulter, it can issue an attachment warrant to the bank using Form 16, a BBMP official said, as cited in media reports. The bank is then legally bound to furnish complete details about all accounts held by the defaulter, including fixed deposits, he added.
In case the bank fails to adhere to this and allows any withdrawals by the tax defaulter, the BBMP has the right to take action against the bank under Section 222 (Omission to assist public servant when bound by law to give assistance) of the Bharatiya Nyaya Sanhita. The BBMP must also notify the defaulter of the attachment warrant, either in person, by mail, or through electronic means.
Recently, the Karnataka government has extended the deadline for availing of the One-Time Settlement (OTS) scheme for BBMP property tax arrears in Bangalore until September 30, 2024. The scheme aims to benefit property taxpayers in the BBMP area by providing them with a complete interest waiver on outstanding dues. Further, penalties on overdue amounts have been halved, Bangalore development minister D K Shivakumar said.
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