Taiwanese chipmaker Foxconn faces tax controversy in Karnataka, locals fear of mass protest
On Monday, a significant dispute arose between Foxconn Hon Hai Technology India Mega Development Pvt. Ltd. and a Gram Panchayat in the Bengaluru Rural district of Karnataka. The local authorities accused the company of failing to pay taxes, breaking building codes, and denying nearby village residents job opportunities.
For Foxconn’s facilities in the villages of Doddagollahalli and Aruvanahalli, which together cover an area of about 5.33 lakh square metres, the Gramme Panchayat has sent a notice requesting information on approved building plans, construction licences, completion and occupancy certificates, and survey-wise built-up area data.According to Panchayat officials, the land parcels are still listed as vacant sites in official documents, even though large-scale construction has already been finished and operations have apparently started.
The Panchayat has warned that if the company does not comply within seven days, legal action will be taken under the Karnataka Gram Swaraj and Panchayat Raj Act, citing the matter as a major infringement of statutory requirements. The Panchayat has also accused the corporation of not paying local taxes, pointing out that other significant local businesses, such as the international airport and a number of industrial facilities, routinely send taxes to local authorities.
Additionally, local political leaders and others have claimed that Foxconn has not provided the necessary paperwork or guaranteed jobs for young people in the area, despite several communications and meetings with company executives. They further stated that although residents were first summoned for interviews, the corporation eventually recruited labor from outside the region. In the meantime, locals have vowed to stage a massive demonstration later this week if the business does not comply with their demands for local employment.
