Karnataka industrial body clarifies tax collection powers after notice to Foxconn
The Karnataka Industrial Areas Development Board said it has been empowered to collect property tax from industrial units directly. The clarification comes after the Koyira Gram Panchayat issued a notice to Foxconn, accusing the company of non-payment of local taxes, violation of building norms, and failure to provide employment to local residents.
The Karnataka Industrial Areas Development Board (KIADB) has clarified that it is the authorised authority to collect property tax from industrial units operating in the Devanahalli Special Investment Region (SIR), amid a growing dispute between Foxconn and the local Gram Panchayat.
The clarification comes after the Koyira Gram Panchayat issued a notice to Foxconn, accusing the company of non-payment of local taxes, violation of building norms, and failure to provide employment to local residents. The Panchayat had issued a seven-day ultimatum and warned of legal action and a mass protest scheduled shortly if its demands were not met.
In its statement, KIADB said it has been empowered to directly collect property tax from industrial units located in the Devanahalli General Industrial Area Phases I and II, as well as Adinarayanahosahalli Phase II. These areas, spread over 317.89 acres, were officially notified as the Devanahalli Special Investment Region under a government notification dated January 29, 2026.
The Board clarified that from the 2025–26 financial year onwards, all entrepreneurs operating in these notified industrial areas are required to pay property tax to KIADB. The collected amount will subsequently be remitted to the concerned local bodies in accordance with government orders. KIADB also underlined that the land in question does not belong to the Gram Panchayat.
Reacting to the controversy, Karnataka Minister for Large and Medium Industries M B Patil said there was “no confusion” on the issue. “Yesterday we verified it. This is a very small issue,” he said.
Dismissing allegations that Foxconn had failed to hire local residents, Patil termed the claims “false and not true.” He said the company had conducted job fairs and selected nearly 5,000 workers, many of them women. “Recruitment is done based on skill requirements.” he added.
The KIADB clarification is expected to defuse tensions and address concerns raised by local authorities and residents over tax jurisdiction and compliance in the newly notified investment region.