Yet to clear property tax arrears? BBMP's OTS scheme extended till August-end

Bengaluru: Karnataka's Deputy Chief Minister DK Shivakumar on Friday (August 2) announced that the Bruhat Bengaluru Mahanagara Palike (BBMP) will extend the one time settlement (OTS) scheme by one month.

This is likely to help 2.74 lakh property tax defaulters in the city limits who are yet to make use of the scheme.

The civic body waived off compounding interest on the property tax arrears entirely and reduced the penalty amount by half. 

“We are extending the deadline by a month, following  public demand,” Shivakumar, who holds the Bangalore Development portfolio, told reporters.

“There was an issue with the server and some faced problems while depositing the cheque. Hence, the scheme will continue until August-end.”

The BBMP launched the scheme in February following an approval from the state cabinet. So far, around 1.07 lakh property tax defaulters cleared arrears to the tune of Rs 217 crore. The civic body expects the scheme to generate another Rs 516 crore from the 2.74 lakh defaulters who are yet to pay. 

Officials came up with the idea of launching OTS as many property owners, who defaulted payments for several years, were struggling to clear the dues owing to the interest and penalty the civic body charges on delayed payments. To encourage the habitual defaulters, the BBMP introduced OTS scheme through a government notification. 

Server trouble

Hundreds of property tax defaulters had thronged the BBMP’s revenue and ward offices on the final day, which was July 31, to avail the OTS, only to be met with a dysfunctional server. As the government had not extended the deadline,  many residents were left waiting at the offices well into the night. Some struggled to make payments even online. 

With the extension, the BBMP hopes to improve its revenue collection. The scheme along with the revision of the self assessment scheme has boosted the BBMP’s revenue to Rs 3,065 crore in just four months — an increase of Rs 608 crore compared to the same period last year. This puts the BBMP on track to meet its annual target of Rs 5,200 crore.