Interesting news article from New Indian Express - "Local Bodies pocket Rs 151.8 cr ...":
The latest Comptroller and Auditor General of India report has revealed that of the Rs 174.59 crore collected by the local bodies between 2004 and 2006 towards cess, only Rs 5.33 crore was transferred to the Government.
So its not really a case of corruption, could simply be negligence, or delay. And its not just a Bangalore thing:
Test checks by the CAG showed at least eight city/town municipal councils and six city corporations, including Belgaum, Bellary, Mangalore and Mysore, among others, had failed to transfer the cess to the Government.
Found it interesting.
[Link via Belgaumblog]