BBMP ratchets up property tax dispute with Manyata, REVA

The Palike action took the establishments by surprise

Embassy Manyata Business Park, among the largest business parks in India, is said to owe Rs 72 crore. Credit: DH Photo/Janardhan B K

Embassy Manyata Business Park, one of the largest commercial hubs in the country, was on Tuesday served a “distress warrant” by the BBMP for defaulting on property tax arrear payment.

Two other commercial establishments — REVA University and The Royal Grand Convention Hall — were also issued the same notices. All three establishments are located in the BBMP’s Yelahanka Zone. Sprawled over nine blocks, Manyata straddles Hebbal, Nagavara and Thanisandra neighbourhoods. REVA University is located in Kattigenahalli, near Yelahanka. The Royal Grand is situated in Thanisandra.

The BBMP action took the establishments by surprise.

BBMP officials insisted that the ‘distress warrants’ had to be issued because the owners of all three establishments failed to show any willingness to clear pending dues despite being given “adequate time”. While Manyata owes Rs 72 crore, REVA University’s arrears stand at Rs 16.95 crore. The convention hall owes Rs 70 lakh, according to BBMP data.

Although all three establishments have been paying property tax annually, the BBMP’s total station survey — conducted in 2019 — found discrepancies in their property measurement and zoning classification. The discrepancies, the BBMP argues, wrongfully reduced their property tax liabilities.

The BBMP believes the tech park owes it much more in property tax payment than the Rs 60 crore to Rs 65 crore it has been paying per year. The civic body has computed Manyata’s property tax arrears over the past 10 years at Rs 72 crore. The dues include the differential amount and the compound interest.

Rukmini Educational Charitable Trust, which runs REVA University, has paid the BBMP only Rs 5 crore in property tax dues and still owes Rs 16.95 crore. The Royal Grand owes Rs 70 lakh but has paid only Rs 9 lakh, said Poornima P V, Joint Commissioner, Yelahanka Zone, BBMP.

What Embassy, REVA say

Embassy Group has already challenged the BBMP’s property tax claims in the high court. “Embassy and its SPVs, including Manyata Promoters Private Ltd, have always acted and continue to act in accordance with the provisions of applicable laws and regulations. There are multiple proceedings filed by Manyata against the BBMP in connection with disputes over property tax which are currently sub juice before the High court of Karnataka and we await the final orders in these proceedings,” an Embassy Group spokesperson said.

Prof M Dhanamjaya, Vice-Chancellor, REVA University, told DH: “We were surprised to see this kind of action by BBMP officials. None of the BBMP officials met anybody from the administration who have been coordinating with the BBMP on these tax matters.

“As a university and law-abiding organisation, REVA has been responsible and consistently paying taxes to the BBMP. We have objected to the revised tax slabs that BBMP has brought forth. We have been holding meetings and discussions with the BBMP and coordinating with officials on the future course of action.”

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