Foxconn Under Fire In Karnataka Over Tax Dues, Building Violations; Villagers Threaten Protests

Taiwanese electronics manufacturer Foxconn Hon Hai Technology India Mega Development Pvt. Ltd has landed in a dispute with a Gram Panchayat in Karnataka’s Bengaluru Rural district, following allegations of unpaid local taxes, breaches of construction rules, and failure to provide jobs to nearby villagers.

Local authorities have issued a formal notice to the company, demanding details related to approved building layouts, construction permits, completion and occupancy certificates, along with survey-wise built-up area data for its facilities located in Doddagollahalli and Aruvanahalli villages. The combined project area spans nearly 5.33 lakh square metres.

Panchayat officials claim that despite extensive construction and reported commencement of operations, government records still classify the land parcels as vacant. They have described this as a serious lapse in statutory compliance.

Warning of legal consequences, the Panchayat stated that action would be initiated under the Karnataka Gram Swaraj and Panchayat Raj Act if Foxconn fails to submit the required documentation within seven days.

Authorities have also accused the company of not paying local taxes, pointing out that other major establishments in the region — including the international airport and several industrial units — regularly fulfil their tax obligations to local governing bodies.

In addition, elected representatives and residents have alleged that Foxconn has ignored repeated communications and meetings, neither sharing mandatory documents nor fulfilling assurances of employment for local youth. According to villagers, while some residents were initially called for interviews, the final recruitment largely favoured workers from outside the area.

Amid growing discontent, local residents have warned that they will launch a large-scale protest later this week if their demands for local employment and transparency are not addressed.