(1) If the person to whom a notice of demand has been served under these rules does not pay the Property Tax, Interest, Penalties, Cesses and other Levies, within thirty days from the service of such notice, in the absence of any stay issued by the Appellate Authorities under rule 4, the Revenue Officer or the authorized officer may recover by distraint under his warrant and sale of such movable property of the defaulter or if the defaulter is the occupier of the building by distress and sale of any movable property which may be found in or on such building or land, the amount due on account of tax, penalties, cesses and levies, together with the warrant fee and distraint fee and with such further sums as will satisfy the probable charges, that will be incurred in connection with the detention and of the sale of property so distrained.
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(2) If, for any reason the distraint or a sufficient distraint of the defaulter's property cannot be effected, the Revenue Officer or authorized officer may attach and seal, by passing an order in this regard, the bank account and/or the immovable property of the defaulter until the recovery of the property tax, interest, penalties, cesses and other levies, together with the warrant fee and distraint fee and with such further sums as shall satisfy the probable charges, that may be incurred in connection with the attachment of the immovable property:
Provided that the Revenue Officer or authorized officer may order or direct the Bank to deduct and remit the amount due on account of property tax, interest, penalties, cesses and other levies.
(3) The Revenue Officer or authorized officer may prosecute the defaulter before a competent court.
(4) Distraints of movable properties of the defaulter: (i) Orders of distraint under these rules shall be in Form-9 and issued by the authorized officer.
(ii) For distraint of movable properties of the defaulter, the following procedure shall be followed, namely: -
(a) The distraint shall be made by the Revenue Officer or authorized officer in the presence of independent witnesses consisting of not less than two respectable persons of the locality. A copy of the order shall be given to the defaulter if he is present and if he is absent and there is not any properly authorized agent to receive it, the order of distraint shall be served at his usual place of residence or on the premises where the distraint is to be made. After the distraint is made an inventory of the property distrained shall be made in Form- 10 and attested by the Revenue Officer or the Assistant Revenue Officer and by the witnesses. A copy of the inventory shall be handed over to the defaulter or his authorized agent, if he is present. The property distrained shall not be disproportionate to the amount of arrears to be recovered.
(b) All distrained property shall ordinarily be retained in the custody of the Revenue Officer or the Assistant Revenue Officer or custody may be given to such other officer, as deemed appropriate by the officer ordering the seizure, in 11 which event the Revenue Officer or the Assistant Revenue Officer may make such arrangements.
(iii) On all matters not expressly provided for in this rule, the procedure regarding distraints shall, as far as may be, be similar to that prescribed in respect of attachments of movable property under the Code of Civil Procedure.
(5) Sale of Movable Properties. – (a) The notice of auction sale under these rules shall be in Form-11 with such modifications as may be necessary.
(b) The Upset Price or the minimum auction price for each movable property shall be fixed by the Joint Commissioner of the Zone upon proposal made in this regard by the Revenue Officer. The Joint Commissioner may take assistance of such officers as he deems knowledgeable to advise on the same.
(c) The notice of auction sale shall be affixed on the following places, namely:-
(i) on the property which is liable to pay the Property tax;
(ii) website of the Bruhat Bengaluru Mahanagara Palike;
(iii) the notice board of the Office of the Zonal Commissioner;
(iv) the notice board of the Office of the Revenue Officer of the Division;
(v) the notice board of the Office of the Assistant Revenue Officer;
(vi) the notice board of the Ward Office concerned; and
(vii) the local conspicuous public space in the locality in which the property liable to pay property tax is situated.
(d) Every sale held under these rules shall be held on the day named in the proclamation, and if necessary, continued from day to day (except public or general holidays), until all the properties specified in the sale proclamation shall have been sold. The Zonal Deputy Commissioner (Revenue) may adjourn any sale for a period not exceeding three days recording reasons for such adjournment.
(e) Where owing to combination or other causes there are either no bidders or the bids offered are not adequate as against the upset price, the Zonal Deputy Commissioner (Revenue) shall postpone the sale.
(f) The certificate of sale/purchase of movable property to be granted under these rules shall be in Form-12.
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(6) Attachment of Immovable Property. - (i) The attachment of immovable property shall be made by an order prohibiting the defaulter from transferring or charging the property in any way and all persons from taking any benefit from such transfer or charge. The attachment Order shall be in Form-13.
The same shall be communicated to the jurisdictional Sub-Registrar working under the Stamps and Registration Department, who shall record the attachment as encumbrance with respect to the said property.
(ii) The order under sub-rule shall be proclaimed at some place on or adjacent to such property by beat of drum or other suitable mode and a copy of the order shall be affixed on a conspicuous part of the property and also on the notice board of the office of the Revenue Officer making the order. It shall also be published on the website of the Bruhat Bengaluru Mahanagara Palike. The copy shall be served on the defaulter who is the owner of the property.
(iii) The Trade License, if any, for any activity running in the said immovable property shall stand immediately suspended when the order of suspension is issued by the authorized officer empowered to attach the immovable property and running of any commerce or trade may be stopped on such an immovable property by way of sealing of the commercial premises/property. Such order shall be in Form-5B. The Trade License shall stand cancelled, in case the defaulter fails to pay all the outstanding dues within three months from the date of order of attachment and the running of the trade shall be stopped.
(7) Sale of Immovable Properties: The procedure prescribed for the sale of movable properties shall be mutatis mutandis followed for the distress sale of immovable properties for recovery of property tax, levies, cesses and other dues.
(8) Claims to immovable property attached: (i) If any claim is set up by a person other than the defaulter, to the immovable property attached under these rules, the Revenue Officer making the attachment shall hold a summary enquiry into the claim and after such enquiry may admit or reject the claim.
(ii) The person against whom an order is made under this sub-rule may, within one year from the date of such order, institute a suit to establish the right which he claims to the property attached, but subject to the result of such 13 suit, if any, the order shall be conclusive.
(9) Registers of movable properties sold, and immovable properties attached shall be kept in the office of the Revenue Officer in Form-14 and Form- 15, respectively.
(10) Attachment of bank account of the defaulter.- The following steps shall be followed for recovery of the taxes by attachment of the bank account of the defaulter,-
(i) The attachment warrant to the bank shall be in Form-16. The bank is also under the statutory obligation to furnish the complete details of all the bank accounts held by the defaulter including fixed deposits and others. It shall be ensured that a copy of the attachment warrant is also served on the defaulter simultaneously or as soon as possible directly on the person and if it is not practical to serve the same directly, it may be served through e-mail ID or any other electronic medium.
(ii) The Bank on receipt of the attachment warrant shall disclose all the bank accounts of the defaulter to the authorized officer and furnish the details of amounts available to the credit in the format mentioned in Form-
16.
(iii) In case the Bank fails to comply with the terms of the attachment warrant and allows the person-in-default to draw any amount that may be available to his credit in any account held in the bank, the authorized officer may proceed against the bank under section 222 of Bhartiya Nyaya Sanhita, 2023( Central Act 45 of 2023) including and issue a show-cause notice in Form-
17.
(iv) The Revenue Officer or an authorized officer may seek order of the competent court for making attachment warrant with respect to an immovable property absolute and also prosecute the defaulter of payment: The authorized officer may file a complaint under section 223 of Bharatiya Nagarik Suraksha Sanhita 2023 (Central Act 46 of 2023) to prosecute the person-in-default even after issue of demand notice before the court of competent jurisdiction.