Eight firms including Sasken, Hotel Ashoka accused of paying less property tax

Bengaluru: Senior BJP leader Padmanabha Reddy has alleged that the Bruhat Bengaluru Mahanagara Palike (BBMP) suffered a revenue loss of Rs 63.31 crore due to irregularities in the calculation of property tax. He named at least 8 big firms including five star hotels, a tech firm and a real estate company for evading property tax payment. 

Addressing reporters on Wednesday, Reddy suspected a nexus between BBMP officers and private companies while calculating the taxes to be paid based on the size of properties. He alleged that the officials, without the permission of BBMP council, gave tax rebate to the giant commercial establishments that had a history of paying less property tax.

The evasion of property tax came to light after the BBMP launched a programme called “Total Station Survey” to find out miscalculation of property measurement in self-assessment scheme. “Eight to twelve companies were found paying less property tax than what they were supposed to pay. Instead of recovering unpaid taxes from these establishments, the BBMP officials offered them tax rebate, resulting in a loss of Rs 63.31 crore,” Reddy told reporters.

The issue was also raised in the BBMP council on Thursday. The councillor accused officials of malpractice and demanded the case be handed over to Anti-Corruption Bureau (ACB). BBMP Commissioner Anil Kumar promised to look into the issue. Most of these cases are pertaining to tax evasion in the last ten years.

Meanwhile, the BBMP has planned to conduct a total station survey of 100 high-value revenue generating properties including malls and tech parks. The drive, officials hope, would fetch a revenue of Rs 400 crore. 

For 2019-20 financial year, the civic body has set a target of collecting Rs 3,500 crore as property tax from about 20 lakh properties. The target appears to be too ambitious as the BBMP had collected only about Rs 2,600 crore last year and Rs 2,170 crore in 2017-18. 

Companies accused of paying less property tax:-

Companies/HotelsTax PaidRebate offeredRevenue loss

Sasken Technologies Pvt Ltd, Domlur

Rs 22.72 croreRs 58.97 croreRs 16.82 crore
Hotel AshokaRs 9.94 croreRs 9.94 croreRs 9.94 crore
ASK Brothers LtdRs 8.57 croreRs 18.08 croreRs 8.39 crore
Royal Orchid HotelRs 7.06 croreRs 49.32 lakhRs 6.57 crore
The OberoiRs 6.14 croreRs 1.09 croreRs 5.04 crore
Sriram Leela DevelopersRs 2.52 croreRs 14.72 croreRs 2.37 crore
Gateway HotelRs 3.65 croreRs 69.59 croreRs 2.96 crore
Elixir Enterprises & HotelsRs 22.95 croreRs 11.76 croreRs 11.18 crore