Chapter III CONSTITUTION OF THE CORPORATION

(1) As soon as may be, after the commencement of this Act, there shall be established for the purposes of this Act, a Corporation to be called Bruhat Bengaluru Mahanagara Palike. (2) The Governor having regard to,- (a) population of any area within the reasonable proximity of Bengaluru; (b) the density of population of such area; (c) the revenue generated by existing local administration of such area; (d) the percentage of employment in non-agricultural activities in such area; (e) the economic importance of such area; (f) special development plan, trade, transport; and (g) such other factors as may be prescribed or required to be considered from time to time include such areas to be within or exclude such areas from the jurisdiction of the Bruhat Bengaluru Mahanagara Palike by notification in the Official Gazette. (3) No such notification shall be issued unless a draft thereof is,- (a) published in the official Gazette for the information of all persons likely to be affected thereby inviting objections and suggestions within one month from the date of publication; and (b) referred to the corporation for expressing its views thereon within the period specified in clause (a). (4) Save as otherwise provided in this Act or any other law for the time being in force, when a local area is excluded from the larger urban area. (i) the rights and liabilities of the corporation in such area shall vest in Government; and (ii) Government shall, after consulting the corporation, determine what portion of the corporation fund and other property of the corporation shall vest in Government for the benefit of the inhabitants of such local area and how the liabilities of the corporation shall be apportioned between the corporation and Government. (5) When a local area is included in the larger urban area, the provisions of this Act and all taxes, notifications, rules, bye-laws, orders, directions and powers, levied, issued, made or conferred under this Act or any other law applicable to the larger urban area shall apply to the said area from the date of inclusion of such area within the larger urban area. (6) The Corporation shall be a body corporate with the name aforesaid having perpetual succession and a common seal with power, subject to the provisions of this Act, to acquire, hold and dispose of property and may by the said name sue and be sued. (1) The Bruhat Bengaluru Mahanagara Palike (Amendment) Ordinance, 2022 (Karnataka Ordinance 05 of 2022) is hereby repealed. (2) Notwithstanding such repeal, anything done or any action taken under the Principal Act, as amended by the said Ordinance, shall be deemed to have been done or taken under the Principal Act, as amended by this Act. Notwithstanding anything contained in any judgment, decree or order of any Court, Tribunal or other authority to the contrary levy, assessment or collection of any amount as tax, cess, fee etc. on building, vacant plot etc., tax, cess, fee etc. made or purporting to have been made and any action or thing taken or done (including any notices or orders issued or assessment made) and all proceedings held and any levy and collection of tax, cess, fee etc. purported to have been collected by way of tax, cess, fee etc. in relation to such levy assessment or collection under the provisions of the Principal Acts or any rules, notification, order, guidelines or letters before the commencement of the Bruhat Bengaluru Mahanagara Palike and Certain Other Law (Amendment) Act, 2023 shall be and shall be deemed to be valid and effective for all purposes as if such levy, assessment or collection or action or thing had been made, taken or done under the Principal Acts as amended by the Bruhat Bengaluru Mahanagara Palike and Certain Other Law (Amendment) Act, 2023 and accordingly,- (a) all acts, proceedings or things done or any action taken by the Government or the officers of the Corporation, as the case may be, in connection with the levy, assessment or collection of any amount as fee for all purposes be deemed to be and to have always been made, done or taken in accordance with law; (b) no suit or other proceeding shall be maintained or continued in any Court or Tribunal or before any authority for the refund of any such fee; and (c) no Court shall enforce any decree or order directing the refund of any such fee.

It shall be the duty of the corporation to cause at its own cost to be erected or set up and thereafter maintain at its own cost substantial boundary marks of such description and in such position as shall be approved by the Deputy Commissioner of the revenue district having jurisdiction, defining the limits or the altered limits, as the case may be, of the city which is subject to its authority In the Bruhat Bengaluru Mahanagara Palike Act, 2020 (Karnataka Act 53 of 2020) (hereinafter referred to as the Principal Act) in section 81, in sub-section (1), clause (d) shall be omitted.

The Corporation, shall continue for five years from the date appointed for its first meeting unless dissolved earlier. In the Principal Act, in section 102, in sub-section (1), the words “and appeals” shall be omitted.

(1) For the purposes of election of councilors, Bengaluru shall be divided into wards on the recommendation of the delimitation commission in such manner that,- (a) the population of each of the wards shall, as far as practicable, be the same throughout Bengaluru.; (b) Wards shall be divided within the constituency of a member of legislative assembly and no wards shall be spread over to constituencies. Explanation:- For the purpose of this section population means the population of the city ascertained by preceding census of which relevant figures have been published. (2) The Government shall constitute a delimitation commission consisting of such number of persons as may be prescribed to recommend to the Government regarding the manner of division of wards. (3) The Government shall by order determine,- (a) the wards into which the Corporation shall, for the purpose of its elections, be divided in to not less than two hundred and twenty five but not more than two hundred and fifty wards; (b) the extent of each ward; and (c) the number of seats so reserved for Scheduled Castes and Scheduled Tribes shall bear as nearly as may be, the same proportion to the total number of seats to be filled by direct election in the corporation as the population of the Scheduled Castes in the city or of the Scheduled Tribes in the city bears to the total population of the city: (d) Such number of seats which shall as nearly as may be, one third of the total number of seats to be filled by direct election in the Corporation shall be reserved for persons belonging to the Backward Classes. Provided that the number of seats so reserved for the Backward Classes under this sub-section shall be so determined, that the total number of seats reserved for the Scheduled Castes and Schedule Tribes and the Backward Classes under this sub-section shall not exceed fifty percent of the total number of seats in the Corporation. (4) Not more than fifty percent of the seats reserved for each category of persons belonging to Scheduled Castes, Scheduled Tribes and Backward Classes and those of the non-reserved seats to be filled by direct election in a corporation shall be reserved for women: Provided that, the seats reserved in sub-sections (3) and (4) shall be allotted by rotation to different wards in the city. (5) No delimitation of wards or change of wards for the purpose of reservation shall be made in the Corporation after its constitution except for the purpose of general election to that Corporation and no such delimitation or change of wards shall, in any manner, affect the existing Corporation. In the Principal Act, in section 142, sub-sections (2) and (3) shall be omitted. In the Principal Act, section 148 shall be omitted.

(1) The Corporation shall consist of,- (a) such number of elected Councilors representing each ward determined by the Government under sub-section (3) of section 7. (b) the Government shall nominate such members from the residents of the city and such members shall not exceed ten percent of the Councillors:- (i) who are persons having special knowledge and experience in municipal administration or matters relating to health, town planning or education; or (ii) who are social workers; Provided that, the persons referred to in clause (b) shall not have right to vote in the meetings of the Corporation. (c) The Members of the House of people whose constituencies are within the area of the Corporation and the Members of the Council of States who are registered as voters in the Corporation. (d) The Members of Legislative Assembly whose constituencies are within the area of the Corporation and the Members of Legislative Council who are registered as voters in the Corporation. (2) Seats shall be reserved in a corporation,- (a) for the Scheduled Castes; and (b) for the Scheduled Tribes: and the number of seats so reserved shall bear as nearly as may be, the same proportion to the total number of seats to be filled by direct election in the corporation as the population of the Scheduled Castes in the city or of the Scheduled Tribes in the city bears to the total population of the city. (3) Such number of seats which shall as nearly as may be, one third of the total number of seats to be filled by direct election in a corporation shall be reserved for persons belonging to the Backward Classes: Provided that, the number of seats so reserved for the Backward Classes under this sub-section shall be so determined, that the total number of seats reserved for the Scheduled Castes and Schedule Tribes and the Backward Classes under sub-sections (2) and (3) shall not exceed fifty percent of the total number of seats in the Corporation. Provided further that, out of the seats reserved under this sub-section, eighty percent of the total number of such seats shall be reserved for the persons falling under category "A" and the remaining twenty percent of the seats shall be reserved for the persons falling under category "B": Provided also that, if no person falling under category "A" is available, the seats reserved for that category shall also be filled by the persons falling under category "B" and vice-versa: (4) Not more than fifty percent of the seats reserved for each category of persons belonging to the Scheduled Castes, the Scheduled Tribes and backward classes and those of the non-reserved seats to be filled by direct election in a corporation shall be reserved for women: Provided that, the seats reserved in this sub-section shall be allotted by rotation to different wards in a city. (5) The Councilors referred to in of sub-section (1) shall be elected in the manner provided in this Act. (6) Nothing contained in sub-sections (2), (3) and (4) shall be deemed to prevent the members of the Scheduled Castes, Scheduled Tribes, backward classes or women from standing for election to the non-reserved seats. (7) Notwithstanding anything contained in this Act, where two thirds of the total number of Councillors required to be elected have been elected, the Corporation shall be deemed to have been duly constituted under this Act. (3) Provided further that, out of the seats reserved under this sub-section, eighty percent of the total number of such seats shall be reserved for the persons falling under category "A" and the remaining twenty percent of the seats shall be reserved for the persons falling under category "B": Provided also that, if no person falling under category "A" is available, the seats reserved for that category shall also be filled by the persons falling under category "B" and vice-versa: (4) Not more than fifty percent of the seats reserved for each category of persons belonging to the Scheduled Castes, the Scheduled Tribes and backward classes and those of the non-reserved seats to be filled by direct election in a corporation shall be reserved for women: Provided that, the seats reserved in this sub-section shall be allotted by rotation to different wards in a city. (5) The Councilors referred to in of sub-section (1) shall be elected in the manner provided in this Act. (6) Nothing contained in sub-sections (2), (3) and (4) shall be deemed to prevent the members of the Scheduled Castes, Scheduled Tribes, backward classes or women from standing for election to the non-reserved seats. (7) Notwithstanding anything contained in this Act, where two thirds of the total number of Councillors required to be elected have been elected, the Corporation shall be deemed to have been duly constituted under this Act. In the Principal Act, in section 143,- (i) in sub-section (1), after clause (c), the following shall be inserted namely:- “(d) Collect such other cesses, along with the property tax, as may be prescribed by the Government to be collected under any other law in force and whose proceeds are required to come to the Corporation or otherwise.” (ii) for sub-section (2), the following shall be substituted, namely:- “(2) All monies collected in the form of cess or otherwise shall be credited to a separate head of account and shall be known as the respective cess fund or by the name of the tax or the levy under which it is collected.” (iii) in sub-section (3), for the word “accessed”, the word “assessed” shall be substituted. (iv) in sub-section (4), for the words “before the tribunal”, the words “to the prescribed authority” shall be substituted. In the Principal Act, in section 149,- (i) in sub-section (1), the following proviso shall be inserted at the end, namely:- “Provided that, in case of transactions registered under the Registration Act, 1908 (Central Act 16 of 1908) where such information is received from the concerned Sub Registrar, it shall not be mandatory to notify such a transfer by the person primarily liable for payment of property tax.” (ii) for sub-section (3), the following shall be substituted, namely:- “(3) Whenever such transfer comes to the knowledge of the Chief Commissioner or authorised officer through such notice or otherwise, the name of the transferee shall be entered in the property tax register. (iii) sub-section (5) and entries relating thereto shall be omitted. (iv) in sub-section (6), for the words, “without consulting the Board or local authority concerned”, the words “without confirmation of order of transfer of such a building or land by the said Board or local authority concerned” shall be substituted.

(1) Notwithstanding anything contained in the Oaths Act, 1969 (Central Act 44 of 1969) every person who is elected to be a councillor shall, before taking his seat, make at a meeting of the corporation, an oath or affirmation of his allegiance to the Constitution in the following form namely:- "I.A.B., having been elected a councilor of this corporation do swear in the name of God / solemnly affirm that I will bear true faith and allegiance to the Constitution of India, and that I will faithfully discharge the duty upon which I am about to enter". (2) Any person who having been elected to be a councilor fails to make, within three months of the date on which his term of office commences or at one of the first three meetings held after the said date, whichever is later the oath or affirmation laid down in subsection (1) shall cease to hold his office and his seat shall be deemed to have become vacant. (3) Any person who has been elected to be a councillor shall not take his seat at a meeting of the corporation or do any act as such councillor unless he has made the oath or affirmation as laid down in sub-section (1). (4) Notwithstanding anything contained in sub-section (3), a Mayor or Deputy Mayor or the chairman or a member of a standing-committee, who has not made the oath or affirmation as a councillor shall not be entitled to act as such Mayor, Deputy Mayor, Chairman or member. In the Principal Act, in section 144,- (i) in sub-section (1), for the words “taxable annual value”, the words “taxable capital value” shall be substituted. (ii) for sub-section (5), the following shall be substituted namely:- “(5) The property tax shall be levied by the Bruhat Bengaluru Mahanagara Palike by a resolution passed at such percentage not more than ten percent of the taxable capital value of a building, vacant land or both. The taxable capital value of a building, vacant land or both shall be calculated by multiplying the corresponding “unit area value” with the total built-up area of a building, vacant land or both for ten months, minus the depreciation of three percent per year depending on the age of a building. The property tax assessed and levied under this section, once notified by the Government, shall stand revised as and when the property, building or land value is revised by a notification under section 45B of the Karnataka Stamp Act, 1957 (Karnataka Act 34 of 1957) by the Government. Explanation: For the purpose of this section, “Unit Area Value” means the guidance value of the property or the land published under section 45B of the Karnataka Stamp Act, 1957 (Karnataka Act 34 of 1957) and with respect to the building standing on a plot it shall mean the value of building as may be assessed based on the per square foot construction cost minus the depreciation at the time of assessment: Provided that, no such “unit area value” shall come into force unless it is previously published in the official Gazette for the information of the persons likely to be affected and an opportunity is provided to make representation or suggestions, if any, in this regard: Provided further that, subject to such condition and in such circumstances as may be notified, the Chief Commissioner, Bruhat Bengaluru Mahanagara Palike, may, in lieu of the tax under sub-section (2), fix any lumpsum amount as annual tax, irrespective of zonal classification, in respect of,- (a) a built-up area having less than 300 sq.ft., in a slum area declared as such by the Karnataka Slum Clearance Board or the Chief Commissioner, Bruhat Bengaluru Mahanagara Palike; (b) an area used as parking area in a non-residential building and being charged for its use by the owner or the occupier: and (c) any other class of building or structure as he deems fit. Provided also that, the depreciation shall be capped at a maximum of sixty percent. Provided also that, the vacant land shall be assessed at a rate not less than 0.025 percent (Rs. 25 per lakh) and not more than five percent of the taxable capital value of the land. Provided also that, after the taxable capital value based property tax system is brought into force and there is no revision of the values of the properties or land under section 45B of the Karnataka Stamp Act, 1957 (Karnataka Act 34 of 1957) in a year, the property tax shall stand enhanced by five percent every such year. Provided also that, as and when the Government notifies value of land and building under section 45B of Karnataka Stamp Act, 1957 (Karnataka Act 34 of 1957) the revised property tax rates based on the new revised value of properties or land shall be calculated and compared with the prevailing property tax rates and the higher of the two shall be adopted.” (iii) in sub-section (8), the third proviso shall be omitted. (iv) in sub-section (11), the words “unit area value and” shall be omitted. (v) in sub-section (12), the word, “random” shall be omitted. (vi) in sub-section (13), the word, “random” shall be omitted. (vii) in sub-section (15),- (a) the word, “random” shall be omitted; and (b) for clause (b), the following shall be substituted, namely:- “(b) if any property or land is liable to pay property tax but remains un-assessed and outside the taxable property records list or upon In the Principal Act, in section 150,- (i) for the words “three years”, the words “five years” shall be substituted. (ii) the following proviso shall be inserted at the end, namely:- “Provided that no such limitation shall apply in case such a wrongful or incorrect entry is made with respect to a Government land or a land belonging to any local body, any statutory body or an organization owned or controlled by the Government.”

Every councillor referred to in sub-section (1) of section 8 shall, not later than one month after the commencement of his term of office and in the same month of each succeeding year, file with the Mayor a declaration of all assets owned by him and any member of his family. Such declaration shall form part of the corporation records. In the Principal Act, in section 156,- (i) in sub-section (1), for the word and figures “section 148”, the numbers and word “section 144” shall be substituted. (ii) in sub-section (3), the following provisos shall be inserted at the end, namely:- “Provided that any person seeking to file an appeal shall deposit fifty percent of the demanded amount with the Corporation. Provided further that in case of appeal being successful resulting in refund either in part or in full of the already deposited amount, the same shall be immediately refunded by the Corporation or adjusted against any other pending or future property taxes or penalties or cesses or interest or other levies.” (iii) the following shall be inserted after sub-section (3) and the provisos so inserted above, namely:- “(4) If the person to whom a notice of demand has been served under sub-section (1) does not pay the tax within thirty days from the service of such demand, in the absence of any stay issued by the Appellate Authority on the demand notice, the Chief Commissioner 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 together with the warrant fee and distraint fee and with such further sums as will satisfy the probable charges, that may be incurred in connection with the detention and of the sale of property so distrained. (5) If, for any reason the distraint, or a sufficient distraint of the defaulter's property cannot be effected, the Chief Commissioner may attach the bank account or the immovable property of the defaulter in such manner as may be prescribed, till the recovery of the property tax due: Provided that in case of non-payment of the demanded dues even after sixty days from the date of attachment of the immovable properties, the same may be recovered by the distress sale of the immovable properties so attached. In doing so the demand dues together with the warrant fee and with such further sums as will satisfy the probable charges that may be incurred in connection with distress sale of the immovable property so attached. Provided further that the Chief Commissioner may prosecute the defaulter before a competent court.”

(1) Save as otherwise provided in this Act, the term of office of councillors,- (i) directly elected at a general election shall be five years; (ii) nominated by the Government under clause (b) of sub-section (1) of section 8 shall, subject to the pleasure of the Government, be five years. (2) The term of office of the Councilors shall commence on the date appointed for the first meeting of the corporation. (3) If any casual vacancy occurs it shall be filled, as soon as may be, by the election of a person thereto. The person so elected shall hold office only so long as the person in whose place he is elected would have held had the vacancy not occurred: Provided that, no election to fill a casual vacancy shall be held if the vacancy occurs within six months before the expiry by efflux of time of the term of office of the councillors. In the Principal Act, in section 157,- (i) for the second proviso, the following shall be substituted, namely:- “Provided further that no fee shall be levied under this section on any advertisement or a notice,- (a) of a public meeting, or corporation of the city, or In the Principal Act, in section 157,- (i) for the second proviso, the following shall be substituted, namely:- “Provided further that no fee shall be levied under this section on any advertisement or a notice,- (a) of a public meeting, or corporation of the city, or (b) of an election to any legislative body, or (c) of a candidature in respect of such an election: in case the said advertisement or notice is within the maximum permissible size prescribed therefor. In case the advertisement or the notice exceeds the prescribed size, then such advertisement or notice shall be liable for payment of prescribed advertisement fee.” (ii) in the third proviso, for clause (e), the following shall be substituted namely:- “(e) is exhibited with in any train;” (iii) after Explanation-3, the following proviso shall be inserted, namely:- “Provided that in case of advertisement that is liable to pay advertisement fee and/or penalty, whether authorized or unauthorized, but delays to pay the fee, he shall be liable to pay, in addition to the fee, and/or penalty, an interest thereon at a rate of eighteen percent per annum calculated from the date of advertisement fee or penalty becoming due until the date of payment thereof. Provided further that any unauthorized advertisement shall be liable to pay a penalty as may be specified in the bye-laws.”

(1) The Government shall upon consultation with the Corporation, issue a notification dividing its area into various Zones. (2) The Government shall establish a zonal demarcation commission with representation from the Corporation, Government and such eminent members of the public to recommend to the Government, as per such terms of reference, the demarcation of zones and the basis thereof. (3) Prior to the publication of any notification in the official gazette under this Section, the Corporation shall publish the draft of such notification which shall seek the opinion of the public for a period of thirty days from the date of such notification. (4) The number of zones created by the Corporation shall not exceed fifteen. In the Principal Act, in section 161, the following shall be inserted at the end, namely:- “Any dues as per prescribed advertisement fees may be assessed, demand and show cause notices thereon issued and recoveries made, mutatis mutandis, as per manner provided for issuance of show cause notice, demand notice and the recovery of demand for the property tax under this Act: Provided that for unauthorized advertisements the cost of removal thereof, in addition to other provisions, the same may be recovered by the seizure and sale of the unauthorized advertisement materials.”