KIADB Clarifies It Has Authority To Collect Property Tax From Foxconn After Panchayat Notice
The Karnataka Industrial Areas Development Board (KIADB) has clarified that it—not the local Gram Panchayat—is authorised to collect property tax from industrial units operating in the Devanahalli Special Investment Region (SIR), including Foxconn.
This clarification came after the Koyira Gram Panchayat issued a notice to Foxconn accusing the company of unpaid local taxes, violations of building norms, and failure to provide jobs to local residents. The Panchayat had given a seven-day deadline and threatened legal action and protests.
KIADB stated that the industrial land, officially notified as part of the Devanahalli SIR on January 29, 2026, falls under its jurisdiction. From the 2025–26 financial year onward, companies in these notified areas must pay property tax directly to KIADB, which will then transfer the funds to local bodies as per government rules. KIADB also clarified that the land does not belong to the Gram Panchayat.
Karnataka Industries Minister M B Patil dismissed the dispute as minor and said there was no confusion over tax authority. He also rejected claims that Foxconn failed to hire locals, stating the company had recruited nearly 5,000 workers—many of them women—through job fairs based on skill requirements.
The clarification is expected to ease tensions between Foxconn and local authorities.
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