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BBMP tom-toms tax defaulters' lapse

BBMP got its drum-beaters on Tuesday to name and shame a property tax defaulter on Residency Road but it doesn't even know who owns the property and should pay the tax.

DH
Drum-beating at Prestige Towers - deccanherald.com    23 January 2013

Q
Bruhat Bangalore Mahanagara Palike (BBMP), on Tuesday, carried out drum beating drive at the Prestige Towers on Residency Road to recover property tax revenue to the tune of Rs 1.75 crore.
Continuing its drive to target high profile tax defaulters, Palike officers, accompanied by drum-beaters, reached the Prestige Towers and beat the drums for nearly two hours. However, no one turned up to pay the tax.

The owners approached the Palike revenue officers, requesting that they will ask the owner to pay the requisite amount.

The Palike officers said Prestige Towers, which has 157 offices, has not paid taxes since 2008-09. Notices to the owner could not fetch any revenue, compelling thePalike to beat the drums in front of the complex. Since no revenue was collected from the owner of the property, the Palike has decided to beat the drums on Wednesday also.
UQ

<> Impromptu

If one remembers right, the BBMP rules fix the property tax liability on the 'owner' or 'occupier' of the property. In the instant case, the property in question comprises the 'units' of the PT occupied by offices, who presumably are in occupation having purchased the units. The doubt is, - Is it a property developed by P, a well known builder in Bangalore, under a JDA . Even so, the problem in collecting the pt seems to stem on the actual fact that the land had remained in the name of its historical owner.  If so, the problem, in one's perception /genuine guess, is relatable to / arises because of failure of a serious nature in not having the ownership of land transferred, in the normal course, to the owners of the units. Who then is to be blamed, jointly or severally ? -  is the 'million dollar' question. Answer is  obvious, but left unanswered for equally obvious reasons!

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vswami

Posted on January 23, 2013 at 12:07 pm

<> Other States such as Karnataka, lately Maharashtra too, do not seem to lag behind in keeping up the longlasting tradition of indulging in same or similar irregularities. It is the entire body of stakeholders, not only the buyers, so also the lending Banks , have been made the victims of the villainy, and continuing for so long with no let up. The concerned Governments and /or its empowered authorities and servants have been the willing partners, adding to the tragic woes of the investors.

In case what the Urban Minister referred to is the Regulatory Bill pending enactment, then they have to simply keep their fingers crossed and fists tight, and live with hopes on hopes of the kind of changes / improvements the new law has in store; howsoever remote that be.

As for lending banks and other institutions,- to pinpoint with courage of own conviction,- they have been playing a dual role of  victims and culprits; and have to blame selves for own follies, arising because of the systemic deficiencies. To be precise, such deficiencies, - eventually resulting in the ever mounting NPAs, in among others the home loan sector, - go to demonstrate how and to what deplorable extent there has been a callous and recalcitrant attitude on their part  in having in place an efficient ‘risk management’ system. That has to be necessarily an in-built one; and requires a constant monitoring, marked up by profound diligence. For rectifying all such deficiencies, once for all, as a first step, they are required to tone up the internal control and audit functions. Also, need to make doubly sure that both the internal (in-house) as well as external legal advice and guidance are tightened up, and made as far as possible leak proof cum foolproof. If sincerely looked at and considered, to accomplish the desired objective is not at all a difficult exercise or task. For, everything else would automatically fall in place and rendered the most simple and effective, provided they have the comprehensive set of standard norms, and are made conditional  for sanction of home loans.
The norms once prescribed, require to be standardised, and also mandatorily followed, with no scruples...For this purpose, clues and guidance should be taken from the specially tailored and enacted law of the States. And even before, or at the point in time of, deciding to accept home loan applications, through a proper investigation would require to ascertain the credibility, integrity, so on ,  of the promoter/seller; instead of simply relying on the popularity, name and fame, so on. Need to ensure that  the property (Flats or Apartments) are constructed and put up for  sale, only after due compliance with,  and completion of, all the formalities , strictly and fully ; in order that satisfies all that are needed for a proper and lawful conveyance, and in turn,  constitute adequate security for the monies lent.

The mesures/steps on the suggested lines are called for, not simply in the lenders' own interests but also in those of the respective borrowers. Perhaps, the lenders have an important role to play in bringing about the desired improvements in the Realty Sector, by reason of their having the key for the effective solutions. Compliance with the requirements of the law is a must, hence be insisted upon. To be specific, need to be ensured are,-execution and and registration of the Declarations (Form A and Form B), properly drafted contract agreements (agreement to sell and conveyance deed), conveyance only after completion of the construction and obtaining OC, the property has clear and  truly 'marketable title' as warranted.

The registry is the other conscience keeper, in a way the gatekeeper, who is expected to have  a similar but corresponding dominant role to play, with attendant onerous responsibility to discharge, in the performance of duties as 'public servant(s), even in the normal course of its functions as per the governing law, rules and regulations.

To sum up: Without a sincere and earnest  co-operation and truthful co-ordination, above all a concerted action, among everyone of them - not only the players in the sector, but also the buyers , the bankers, and the registry and other concerned local authorities, who have a joint as well as several responsibilty - the presently obtaining state of affairs are bound to persist and continue tenaciously. Any talk about regularising or regulating, and thereby bringing about any change or reform, would then be allowed to remain a pipedream.

For an elaboration of the foregoing aspects, the previous related Blogs herein - (e.g. on the topic of,- Final Conveyance of Property in Apartment Building > When Takes Place? may be gone through.

(Pending edit)

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