'Land records show vacant site': Bengaluru gram panchayat slaps Rs 12.7 lakh tax dues on Foxconn; govt steps in to calm Taiwanese major

BENGALURU: A notice issued by Koira gram panchayat (GP) in Devanahalli taluk seeking Rs 12.7 lakh in pending property tax from Taiwanese electronics major Foxconn, prompted swift intervention from govt amid concerns that it could ruin investment climate in the state.

The GP, in its notice dated Jan 7, also asked the company to submit documents related to the construction of its manufacturing unit spread across two villages — Doddagollahalli and Aruvanahalli — covering 5.3lakh sq metres. The notice said official records still showed the land as vacant and reflected no construction activity in the area.


The notice states: "However, it has been found that construction of buildings have already happened and the unit has started functioning. As such is the case, we seek you to submit the documents, including building plan approval, for verification of the property within seven days of receiving this notice (sic)."

As soon as the notice came to light, both industries department and rural development and panchayat raj departments stepped in to "douse the fire". Last week, Karnataka Industries Area Development Board (KIADB) is said to have issued an order to the GP stating Foxconn falls under a special investment region (SIR) and is answerable only to it on property and land-related matters, including property tax payments.

As per SIR provisions, 70% of taxes collected are to be used to develop the surrounding area, while the remaining 30% will be transferred to the jurisdictional GP.

Late Monday, KIADB asked Foxconn to deposit property tax for 2025-2026 and arrears, if any, for 2024-2025 via its new web portal. KIADB also dispatched letters to Koira GP, Bashethalli GP and Vishwanathpura GP under whose jurisdiction Foxconn and other companies fall under.

IT-BT and RDPR minister Priyank Kharge told TOI: "We have informed the zilla panchayat CEO that Foxconn has been identified as an SIR and KIADB will hand over 30% of taxes collected from the company to Koira panchayat."