Lease at low rates; No action from BBMP despite violation of condition
BBMP properties: ₹100 crore rent, tax due
Kere Manjunath ಕೆರೆ ಮಂಜುನಾಥ್
BENGALURU: The BBMP, which has been locking private shops and institutions for non-payment of property tax, has not recovered over ₹100 crore due in the form of rent for its own properties, shops and markets.
No action has been taken even though the institutions which have rented or leased the Corporation assets have sub-leased them beyond the terms of the lease and are carrying out commercial activities. Also, many leases have expired but have not been renewed. Yet organizations are taking advantage of them. The Deputy Revenue Officers have issued the same notice. Due to this, there is a financial loss to the corporation.
The Chief Auditor of BBMP has clearly mentioned the due amount and financial loss to be recovered by the corporation in the consolidated audit report for the year 2021-22.
Lands, properties and assets owned by BBMP have been leased or rented out for long periods of time and rent has not been paid for many years. Out of 3,855 properties of the corporation, 372 properties are leased/rented. Out of them only the details of 145 properties are current. Most of the properties are leased or rented at very low rates for 3 to 100 years. The report opined that assets should be confiscated to increase corporation revenue and prevent leakages.
The immovable properties of the corporation are given on rent and lease and dues have not been recovered from 6 institutions. Garudamal has not paid the quarterly amount of ₹3.27 crore under Public Utility Building sub-section. ₹1.29 crore has not been paid by the City Central Library in Hebbal.
Corporation has not recovered ₹1.46 crore revenue from assets acquired for our metro project. Pending in Shivajinagar, Jayanagar, J.P. Nagar, Vijayanagar, Yalachenahalli, Dasarahalli subdivision.
BSNL, Karnataka State Finance Corporation, National Textine Corporation, Lidkar Corporation, Maharaja Cold Storages in Jayanagar commercial complex have retained rent of ₹9.42 crore.
₹22 crore due from schools, welfare halls, hospitals
Schools and colleges under BBMP's Jayanagar and Kodigehalli sub-divisions have the highest property tax arrears. The arrears have also increased in Vidyaranyapura, Horamavu sub-divisions.
Kalyana mandapam, party hall, hotel, PG hostel, hospital, nursing home, theaters and industrial buildings also have tax arrears of more than ₹13 crore. ₹6.77 crore tax due from malls in Gandhinagar subdivision, ₹5.79 lakh due from theaters. Tax arrears of ₹3.87 crore have not been recovered from commercial buildings in Jayanagar.
₹17 crore due from government buildings
BBMP has not collected Central and State Government buildings tax and service charges as of 2016-2019. At the end of March 2022, more than ₹17 crore is outstanding.
Vidyaranyapur sub-division of the corporation has the highest outstanding balance (₹4.01 crore) in this regard. ₹2.67 crore in Yalahanka Old Town subdivision, ₹2.04 crore in Vasantnagar subdivision, ₹1.69 crore in Hombegowdanagar subdivision and ₹1.18 crore in HBR Layout subdivision.
Illegality in rent of markets
A lot of irregularities in rent/lease demand, collection and arrears were found in Public Utility Market in East Zone, Krishna Rajendra Market and Jayanagar Commercial Complex Market in South Zone. ₹128.92 crore is outstanding from rent and lease from these three markets. The audit report has warned that if action is not taken to rectify the deficiencies, there is a possibility of financial loss and abandonment of the corporation's assets. Also, it has been suggested to recover ₹28 crore immediately by the end of March 2021-22.
- ₹30.10 crore; Rent arrears from 372 properties of the corporation
- ₹28.06 crore; PUB Market, Jayanagar Commercial Complex, Krishnaraja Market rent arrears
- ₹17.77 crore; Property tax arrears from central and state government buildings
- ₹13.85 crore; Due from Kalyana Mandapam, Party Hall, Hotel, PGs
- ₹9.42 crore; Rent arrears of 6 institutions in Jayanagar
- ₹7.98 crore; Tax arrears from telecom towers
- ₹4.93 crore; Property tax arrears from private schools and colleges
- ₹4.67 crore; Rent arrears from 6 immovable properties of the corporation
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