Moveable assets don’t cover dues; civic chief proposes change in law
The BBMP administration has prepared a proposal to amend the Karnataka Municipal Corporation Act (KMC) of 1976 to allow for confiscation of a property owner’s real estate for the purpose of recovering pending property tax.
The KMC Act allows only for seizing moveable property from the property owner to recover outstanding property tax. But in most cases where BBMP has seized moveable properties, it has not been able to fully recover the pending dues.
Clauses 165 to 170 of the Karnataka Land Revenue Act, 1964 allow for the confiscation of immoveable property. These clauses need to be incorporated in the KMC Act 1976 so as to apply to BBMP, according to a note put up by the Commissioner to the Urban Planning standing committee and the Taxation standing committee.
“Although we confiscate moveable properties, we cannot recover the outstanding tax as the total value does not equal the pending dues. But there is no provision in the KMC Act for real estate foreclosure. If we can make an amendment in the law, we can get an opportunity to recover the pending dues,” said BBMP Commissioner N Manjunatha Prasad.
If the administration approves the proposal, it will be forwarded to the Urban Development Department, Prasad said.
‘Notings should be clear’
Meanwhile, Prasad has issued a circular stating that file notings should clearly written so as not to confuse subordinate staff. Files should contain clear and systematic proposals or else they should be returned. At the zonal level, some officials make notings that are unclear, giving room for misinterpretation by subordinate staff, the circular said.