Foxconn-gram panchayat standoff in Bengaluru Rural: KIADB steps in, asks firm to pay property tax to board

• KIADB orders Foxconn, others in Devanahalli SIR to pay property tax to board
• Property tax for 2025-26 to KIADB; arrears for 2024-25 to gram panchayats
• KIADB launches online portal for property tax payments under Karnataka SIR

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Karnataka Industrial Areas Development Board (KIADB) on February 2 directed iPhone maker Foxconn Hon Hai Technology Pvt Ltd and other industrial units operating in the Devanahalli Special Investment Region (SIR) to pay property tax to the board, stepping into an ongoing jurisdictional dispute with local gram panchayats.

In a letter dated February 2, 2026, KIADB said it has been designated the apex authority for administering industrial areas notified as part of the Devanahalli SIR, with powers to assess, impose, and recover taxes. The directive follows a government notification issued on January 29, 2026.

The intervention comes after Koira gram panchayat issued a notice to Foxconn seeking details of approved building plans, construction licences, completion and occupancy certificates, and plot-wise built-up area for its facilities in Doddagollahalli and Aruvanahalli villages, covering about 5.33 lakh square metres. Panchayat officials said that while construction has been completed and operations are reported to have begun, official records still show the land parcels as vacant.

Devanahalli SIR spans 3,117.89 acres and includes Devanahalli General Industrial Area Phases 1 and 2, and Adinarayana Hosahalli Phase 2, all located in Bengaluru Rural district.

Terming this a violation of statutory provisions, the panchayat warned of legal action under the Karnataka Gram Swaraj and Panchayat Raj Act if the company failed to respond within seven days. It also alleged non-payment of local taxes, noting that other major establishments in the area, including the international airport, regularly remit dues to local bodies.

Local representatives and residents have also alleged that Foxconn has not shared the required documentation or provided employment to local youth despite repeated representations and have warned of protests if the demands are not addressed.

KIADB clarified that property tax for the current financial year 2025-26 must be paid to the board by all entrepreneurs operating within the notified industrial areas, while arrears for 2024-25 are to be cleared with the respective gram panchayats.

The board has also launched a dedicated online portal for property tax payments under the Karnataka SIR framework, enabling industrial plot holders to self-assess and pay taxes digitally. User guides and walkthrough videos have been made available to assist taxpayers.

The communication issued to Foxconn pertains to its unit at plot no. 133 in Devanahalli General Industrial Area at Byradenahalli, Kundana Hobli. Copies were also sent to officials of Vishwanathpura and Koira gram panchayats and Bashettihalli Town Panchayat.

Foxconn has acquired around 300 acres in the ITIR industrial area across Doddaballapura and Devanahalli taluks. In his 2025-26 Budget speech, Chief Minister Siddaramaiah said the company has begun setting up a mobile phone manufacturing facility in Devanahalli with a capital investment of Rs 21,911 crore and incentives of Rs 6,970 crore under the Electronics System Design and Manufacturing (ESDM) scheme.