A dispute has emerged between Koyira Gram Panchayat and Foxconn Hon Hai Technology India Mega Development Pvt. Ltd. in Devanahalli taluk of Bengaluru Rural district, concerning issues related to local tax compliance, building approvals and employment of residents from nearby areas. Local villagers have indicated that they may hold protests if their concerns remain unresolved.
In 2023, the Karnataka government approved Foxconn’s ₹8,000 crore mobile manufacturing project on the outskirts of Bengaluru. The proposed unit, to be set up by Foxconn Hon Hai Technology India Mega Development Pvt Ltd across Doddaballapura and Devanahalli taluks, was to generate around 50,000 jobs. Consequently, 300 Acres of KIADB land were granted to the company.
The Gram Panchayat has issued a notice to the company seeking clarification and documentation, including approved building plans, construction licences, completion and occupancy certificates and survey-wise details of the built-up area at its facilities.
A Gram Panchayat representative said, “KIADB had allotted around 100 acres of land to Foxconn, and property tax was paid at the time of issuing the related E-khata. Subsequently, in a matter concerning land allotted to Foxconn by KIADB, a few cases were taken to the High Court, where a stay was granted in one instance. Following this, Foxconn informed us that it would not pay property tax anywhere in the State and has stopped payments altogether. As a result, the gram panchayat is not receiving funds meant for local development. Under the new 2025 tax rules, we have issued a demand notice asking the company to comply and pay the dues. The tax liability is around ₹50 lakh for land alone, and approximately ₹3.5–4 crore, including buildings.”
However, once the area was classified as a Special Investment Region (SIR) by the Industries Department on January 29 this year, the gram panchayat no longer has the authority to collect taxes, according to sources familiar with the matter. The industrial area was notified as a special investment region under the Karnataka Special Investment Region Act, 2022, and is managed by KIADB only.
“The notice was issued by the Gram Panchayat to Foxconn on January 7, before the SIR classification came into effect. Following this, taxes are payable directly to KIADBl. This position has been formally communicated to the gram panchayat. They are now aware of the framework, and so, this is not expected to pose a problem going forward. Some initial confusion was inevitable during the transition,” they shared.
Published on February 2, 2026
