Default of Rs. 50 Cr Property Tax: BBMP seals Bengaluru Mantri Square Mall, suspends Trade License

Trade license of the Mantri Square Mall was also suspended until further notice, this is the third time in six months the mall faces a lock-down from BBMP
Default - Property Tax-BBMP seals Bengaluru Mantri Square Mall- Trade License- taxscan

The Bruhat Bengaluru Mahanagara Palike ( BBMP ) took decisive action on Friday, May 10 to seal the Mantri Square mall in Bengaluru’s Malleswaram area.  On Friday morning, officials from the BBMP accompanied by Cops took action to seal the Mantri Square mall in Malleswaram. This action was taken due to alleged non-payment of tax arrears amounting to Rs 50 crores.

Previously, the mall’s authorities had obtained a stay order from the court, which allowed them to resume normal operations. However, BBMP revenue officials have emphasized that the mall failed to fulfill its property tax obligation of Rs 50 crores, leading to the civic body issuing a closure notice to the establishment.

So, This is not the first instance of the BBMP sealing the mall. Additionally, the management was instructed to cease operations immediately, and trade licenses were suspended until further notice.

Read Also: Non-Payment of Property Tax: BBMP seals Mantri Square Mall

The history of the mall’s tax woes traces back to previous instances of non-payment. In November 2021, the mall faced a three-hour closure due to pending property tax obligations.

BBMP Joint Commissioner B Shivaswamy (West) clarifies that, in September 2021 the mall had not settled its tax dues for two years, initially making a partial payment of Rs 5 crore but failing to address the outstanding balance thereafter.

Further complications arose when a cheque of Rs 10.43 crore provided by the mall owners for the 2018-19 dues bounced, leading to legal proceedings. In February 2021, the mall underwent a seven-hour shutdown for similar reasons, highlighting a recurring pattern of non-compliance despite official notifications.

Preceding the pandemic, concerns were raised regarding alleged encroachments by Mantri Square mall and the adjacent Mantri Greens apartment on BBMP land. This prompted the BBMP to consider demolition measures, a decision that was temporarily halted by a High Court injunction in March 2020.

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates

taxscan-loader