For the second time in 9 months, BBMP seals property tax-defaulting Mantri Mall
For the second time in 9 months, BBMP seals property tax-defaulting Mantri Mall
Faced with civic funds crunch, BBMP chief takes tough stand on collecting Mantri Mall’s dues before unsealing it
Observers say BBMP action of sealing Mantri Mall is legally unsound under both KMC Act 1976 and BBMP Act 2020
Mantri Mall management alleges it is being targeted because of ‘media pressure’ while bigger tax defaulters are untouched
BENGALURU:
Despite pressure on him to allow property tax defaulter Mantri Mall – sealed on Monday — to reopen, BBMP Chief Commissioner Gaurav Gupta has taken a tough stand and has also directed his team not to budge on the issue and collect tax dues of Rs 27.22 crore from the mall management.
Monday morning proved to be a shocker for the Mantri Mall management and owner Sushil Mantri after a BBMP team visited the mall and sealed it. This marks the second time in 9 months that the popular mall has been the ‘target’ of the civic authorities.
Earlier, BBMP was in the news for all the wrong reasons for sealing Mantri Mall in March 2021 (Read here: Babu raj: BBMP officer blocks entry to Mantri Mall over property tax dues).
Also Read: IAS officer who ‘locked’ Mantri Mall shunted out
BBMP had sealed the mall, notwithstanding that neither the Karnataka Municipalities Act 1976 nor the BBMP Act 2020 allows it to do so. On Monday, soon after a BBMP revenue team from the West zone sealed the mall, phone calls started flooding the civic headquarters and even the BBMP chief had to contend with numerous calls. But despite various pressures, Gupta did not budge and directed his team to collect all the outstanding property tax dues from the mall before unsealing the property.
Also Read: Officer who ‘locked’ Mantri Mall is back in BBMP
Meanwhile, on Monday afternoon, Gupta reviewed Bengaluru’s property tax collection situation and directed officials to be firm on the issue of collecting the taxes.
Collect tax dues from mall tenants!
Interestingly, during the review meeting, BBMP’s West zone officials reportedly informed the Chief Commissioner that vis-à-vis Mantri Mall, seizing its office furniture and other items would only fetch Rs 1 lakh for the civic exchequer — a far cry from the mall’s dues of Rs 27.22 crore.
Following this, Gupta directed the officials to issue notices to the mall’s tenants to clear part of the dues by way of depositing their monthly mall rents with BBMP – a move which sources have suggested is legally unsound. According to one officer, the idea is to “collect tax dues from the tenants and allow that shop to function. It is up to the shopkeepers to get their rents settled with the Mantri Mall management vis-a-vis the amount paid to BBMP.”
Also Read: Mantri Mall pays Rs 5 crore in property tax dues
Both BBMP and builders in the wrong
The course of action taken by BBMP on Monday is seen as wrongful use of the BBMP Act 2020 (since no rules in such matters have been framed under the Act) as well as the KMC Act 1976. In March 2021, the civic agency resorted to the KMC Act 1976 to seal the mall. The KMC Act allows a civic body to recover dues under a warrant of a district court through the distress sale of moveable property, but no such warrant was issued in March or on Monday.
On the other hand, the Mantri Mall management has not made any appeal before any court or tribunal in the matter of its property tax dues. Regardless, sources have once again termed BBMP’s move of sealing Mantri Mall illegal.
Is BBMP working under media pressure?
Sources also said that the move to seal Mantri Mall for the second time was due to pressure from several media houses which were following the case of the mall, which had sought time from BBMP to clear its dues till November 30, 2021.
As it happens, the lockdown imposed by the state government during the Covid-19 second wave put the mall in financial difficulties. “There are a lot of other properties which have more dues. Why is only Mantri Mall being targeted under media pressure? Why are others not facing the same situation? The higher-ups in BBMP should act with conscience instead of being swayed by media pressure,” said a source in the mall management on condition of anonymity.
Previous controversies
• Earlier, on June 2, 2011, the civic authority had demolished the compound wall and the ramp of Mantri Square, citing traffic congestion and the widening of Sampige Road.
• On Jan 16, 2017, the mall was temporarily closed after BBMP withdrew its occupancy certificate following a scaffolding collapse that injured 2 housekeeping staff.
• The mall was again in the news after the Bengaluru Regional Commissioner had ruled that the mall land belongs to BBMP and directed the civic body to take possession of the land.
Also Read: Income Tax officer posted as BBMP Special Commissioner (Revenue)
Also Read: After Karnataka High Court’s intervention, BBMP unlocks Mantri Mall at 10 pm
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