This ruling came as the court allowed a petition filed by M/s Columbia Pacific Communities Pvt Ltd, Bengaluru, a company engaged in providing specialized senior-care services. The petitioner had been collecting common area maintenance charges from residents of Serene Urbana Apartments located in Kannamangala, Devanahalli.

Columbia Pacific Communities challenged a January 11 order issued by K-RERA, which had ruled that a complaint filed by the Serene Urbana Apartment Owners’ Welfare Association against Ozone Urbana Infra Developers Private Limited, the project developer, as well as the service provider and others, was maintainable.

The petitioner argued that the association’s disputes with the developer were unrelated to its role as a service provider and that it was unnecessarily dragged into the matter.

The complainant-association maintained that the service provider was collecting common area maintenance charges from apartment owners and insisted that its inclusion in the proceedings was essential, as the dispute with the developer could not be resolved without involving the petitioner.

After examining the records, Justice M. Nagaprasanna observed that the association’s complaint predominantly involved disputes with the developer, Ozone Urbana Infra Developers Private Limited.

The complaint sought to restrain the petitioner from mortgaging land, infrastructure, and assets, as well as from increasing common area maintenance charges until issues with the Serene Urbana Project were resolved. The judge noted that most of the prayers in the complaint were directed at the developer and other respondents, with only ancillary requests involving the petitioner.

The court highlighted that the petitioner’s agreements with individual apartment owners were limited to providing specific services, as outlined in the “services agreement.” Justice Nagaprasanna remarked that the petitioner had no obligations concerning the development or other activities of the apartment complex. Consequently, the court held that the petitioner could not be held liable for the liabilities of the apartment owners or the developer.

The court emphasized that the petitioner was being unfairly implicated in the proceedings due to disputes unrelated to its role. “For the folly of others, the petitioner is sought to be dragged into these proceedings. In the considered view of this court, the complaint against the petitioner, who is only a service provider, is not maintainable,” the judge stated.

In its ruling, the High Court concluded that the complaint against Columbia Pacific Communities Pvt Ltd was not maintainable, affirming that the service provider could not be held accountable for the disputes between the apartment owners’ association and the developer.

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The Karnataka Municipalities and Certain Other Law (Amendment) Bill, 2024, and the Karnataka Irrigation (Amendment) Bill are designed to hold officials accountable for lapses in property tax collection and curb water theft from irrigation canals.

The Karnataka Municipalities Bill, presented by Urban Development Minister BS Suresh (Byrathi), proposes fines of up to Rs 50,000 and a 15-day imprisonment for officials who fail to collect property tax dues.

“Any officer or employee of the municipality who fails to collect property tax dues under the assessment of property tax or any financial causes to the municipality shall be fined up to Rs 50,000 in each case and may also be punished with simple imprisonment for 15 days,” the bill states.

The bill also empowers municipalities to levy property tax on unauthorized buildings at double the rate for the first year. However, buildings illegally erected on government land or controlled by local bodies or government organizations are exempt from property tax.

Penalties have been introduced for officials who issue property identification numbers or khata for unlawfully formed plots and buildings.

The bill allows municipalities to levy and collect property tax from buildings constructed in violation of building bylaws or in unauthorized layouts.

These properties will be taxed at double the rate for the first year, with only the property tax being levied in subsequent years. However, the collection of property tax “does not confer any right to regularize the violation made, or title, ownership or legal status to such building or vacant land.”

The second bill, introduced by Water Resources Minister DK Shivakumar, seeks to increase the penalty for water theft to Rs 2 lakh from Rs 1,000 and the imprisonment term to two years from one year.

It defines violations such as piercing or cutting canals or pipes, inserting a pipe by piercing or cutting a canal, or installing a machine or any other equipment in the canal that causes damage to its stability or safety.

Users of irrigation water who intend to drill or dig wells or create storage ponds within 500 meters of a canal must seek government permission.

Existing groundwater users within this proximity to lift irrigation systems or canals have six months to register their operations under the new guidelines.

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BBMP officials have collected Rs 73.9 crore in the Bommanahalli zone, with Rs 82.77 crore outstanding. In Dasarahalli, Rs 16.37 crore has been gathered, while Rs 22.21 crore remains. The East zone has seen Rs 70.57 crore collected, with Rs 87.14 crore yet to be collected. In Mahadevapura, Rs 109.37 crore has been collected, leaving Rs 140.04 crore outstanding.

In RR Nagar, the collection stands at Rs 33.78 crore, with Rs 49.74 crore still to be collected. The South zone has received Rs 71.94 crore, awaiting Rs 96.63 crore. The West zone has collected Rs 50.83 crore, with Rs 97.18 crore remaining. In Yelahanka, Rs 36.27 crore has been collected, with Rs 49.16 crore still unpaid.

An official noted, “Despite the launch of OTS on February 27, which aimed to ease property tax burdens by waiving 50% of penalties and interest, many property owners with overdue taxes have not participated. So far, only Rs 463 crore has been collected, well below the expected Rs 1000 crore.

Out of 5.51 lakh property tax defaulters, only 1.52 lakh have settled their dues under the scheme, leaving 3.24 lakh defaulters yet to take advantage of the opportunity. The BBMP had hoped for significant tax revenue through this initiative but has faced a tepid response from taxpayers.”

Despite issuing notices to 3.95 lakh property owners for overdue taxes, only 70,000 have settled their dues. The majority of property owners have not responded to the notices. Additionally, 5 to 7 lakh properties are yet to be brought under the tax net.

“While some property owners have participated, many have not responded to the notices. The BBMP had anticipated a substantial increase in tax revenue through this scheme, but the response has been lukewarm,” added another official.

BBMP Chief Commissioner Tushar Giri Nath stated, “It is time to act now and take advantage of OTS. We are encouraging citizens to utilize the scheme before July 31.

Following a review meeting at the BBMP head office on Monday, we found that approximately 4 lakh property owners are eligible, with 80,000 having already settled their dues.

The remaining 3.20 lakh property owners have until July 31 to avail themselves of the scheme and clear their pending taxes. For any queries regarding OTS, including payment details and locations, you can dial the toll-free helpline at 1533 for assistance.”

Meanwhile, regular property tax collection has also been slow. Between April and June last year, the BBMP collected Rs 2,287 crore, whereas this year, up to July 7, only Rs 1,758 crore has been collected.

This marks a decrease of Rs 528 crore from the previous year. The implementation of the OTS scheme is attributed to this decline. As of July 7, the collection figures are Rs 139.22 crore in Yelahanka, Rs 398.79 crore in Mahadevapura, Rs 60.37 crore in Bommanahalli, Rs 125.95 crore in RR Nagar, Rs 203.85 crore in the South zone, Rs 211.54 crore in the East zone, and Rs 294.21 crore in Dasarahalli.

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