The Bruhat Bangalore Mahanagara Palike (BBMP) has stepped up attempts to recover tax dues from defaulters, especially star hotels in the city.
On Wednesday, a team led by Deputy Commissioner (East) Venkatachalapathy went with the drum-beaters to three star hotels coming under the jurisdiction of Vasant Nagar Assistant Revenue Officer.
Le Meridien was only paying property tax amounting to Rs. 26 lakh annually and had suppressed the built up area.
The BBMP officials discovered this and as per the calculation, the tax added up to Rs. 84 lakh.
“We have added the difference amount for the past five years and the dues to the BBMP add up to Rs. 2.9 crore. The hotel has appealed against this,” said Sohail Ahmed, ARO (Vasanth Nagar).
The team issued a distress warrant to Infantry Court Hotel.
The hotel owners have not paid any tax to the BBMP since 2000.
The tax due from the hotel, including the penalty, is around Rs. 1.6 crore.
“When we threatened to attach the movable properties, the management paid Rs. 50 lakh and promised to clear the rest soon,” Mr. Ahmed said.
The BBMP team also visited Ramada Hotel, which owes the civic body around Rs. 28 lakh.
The hotel management has given an undertaking to clear the same by the end of the month.