BBMP to Use AI for Property Tax Enforcement and Hassle-Free Khata Delivery

The Bruhat Bengaluru Mahanagara Palike (BBMP) is taking significant steps to streamline property tax collection and tackle illegal constructions in the city. Karnataka Deputy Chief Minister, DK Shivakumar, announced that BBMP will use artificial intelligence (AI) to address these issues effectively. This initiative includes using AI to identify unauthorized constructions and deliver property documents, or "khata," directly to property owners' doorsteps. This is part of the BBMP’s larger efforts to modernize urban governance and improve tax collection in the city.

Deputy Chief Minister DK Shivakumar addressed legislators during a meeting on the BBMP budget for the 2025-26 fiscal year, where he explained the challenges faced by the civic body in terms of unapproved constructions and unpaid property taxes. According to the Deputy Chief Minister, a large number of property owners have built additional floor areas without proper sanction, which has led to tax discrepancies. The new AI system will be able to pinpoint such illegal structures and ensure that property owners pay the appropriate taxes for the area they occupy. By doing so, the BBMP aims to close loopholes in the tax system, ensuring all property owners pay their fair share.

Additionally, Deputy Chief Minister DK Shivakumar highlighted that approximately 7 lakh properties in Bengaluru had not paid property tax, with about 1 lakh properties now included under the tax bracket. While these efforts have seen progress, DK Shivakumar emphasized that there is still much to be done to bring the remaining properties into compliance. One major breakthrough is the recent law passed by the state government, which now grants the BBMP the authority to attach and take action against illegal properties, something that was previously outside its jurisdiction.

As part of the plan, the BBMP will also introduce a system to declare private roads in private layouts as public roads. This move aims to bring greater accountability and regulation in areas where infrastructure development has been neglected or mismanaged.

Deputy Chief Minister DK Shivakumar further explained that the AI initiative would also allow the civic body to measure unauthorized construction in real-time, providing an accurate representation of building activities that are not in compliance with existing laws. The move is expected to help YEIDA (Yamuna Expressway Industrial Development Authority) and other urban bodies across the state implement more comprehensive development plans and rectify the gaps in infrastructure that have plagued the city for years.

The AI technology is also being integrated to make property document delivery more efficient. Beginning in April 2025, BBMP will roll out a program to deliver khata, the property ownership document, directly to the owners’ doorsteps. This program will ensure that property owners are provided with the necessary paperwork, which is now fully digitized. In the long run, this effort is designed to eliminate manual errors and delays in document delivery while improving accessibility for property owners, especially in areas that are more difficult to access.

Deputy Chief Minister DK Shivakumar also pointed out that BBMP would conduct awareness programs in collaboration with local legislators to ensure residents are well-informed about these changes. The digitization of property documents has been an essential step in this process, as it allows for easier tracking and management of property tax records.

Furthermore, the BBMP has launched an intensified crackdown on chronic property tax defaulters. Munish Moudgil, the BBMP’s Special Commissioner (Revenue), shared that a total of 3.49 lakh property owners have failed to pay their dues out of the 20.5 lakh registered taxpayers in the city. Of these, 1.76 lakh have defaulted on their taxes only for the current year, while 1.73 lakh individuals are chronic defaulters who have not paid taxes for several years. Together, these defaulters owe the city ₹390 crore, which BBMP aims to recover through this targeted initiative.

The move to focus on chronic defaulters is an important step in ensuring the long-term financial health of the city's infrastructure and public services. With AI’s assistance, the BBMP hopes to automate much of the process, reducing the burden on taxpayers and increasing efficiency. By focusing on those who have consistently avoided their tax obligations, BBMP plans to set a clear example for other property owners.