Locals in Karnataka fear of a large-scale demonstration as Taiwanese chipmaker Foxconn is embroiled in a tax dispute


A significant controversy has surfaced in Karnataka involving Foxconn Hon Hai Technology India Mega Development Pvt. Ltd and a Gram Panchayat in the Bengaluru Rural district, with local authorities levelling a series of serious allegations against the company. The Panchayat has accused Foxconn of evading local taxes, violating building and construction regulations, and failing to provide promised employment opportunities to residents of nearby villages.

According to Panchayat officials, a formal notice has been issued to the company seeking comprehensive details related to its large-scale facilities located in the villages of Doddagollahalli and Aruvanahalli. These facilities reportedly cover a combined built-up area of approximately 5.33 lakh square metres. The notice demands submission of approved building plans, construction licences, completion certificates, occupancy certificates, and detailed survey-wise information on the extent of construction carried out on the land parcels.

Officials stated that despite the apparent completion of major construction activities and reports suggesting that operations have already commenced at the site, official Panchayat records continue to show the concerned land parcels as vacant. This discrepancy, they said, raises serious concerns about compliance with statutory requirements governing construction, land use, and local administration.

Describing the matter as a grave breach of legal and civic obligations, the Gram Panchayat warned that failure to furnish the required documents within seven days would invite legal action against the company. Such action, officials said, would be initiated under provisions of the Karnataka Gram Swaraj and Panchayat Raj Act, which empowers local bodies to regulate construction, taxation, and governance within their jurisdiction.

In addition to alleged violations of building norms, the Panchayat has also accused Foxconn of failing to pay mandatory local taxes. Officials pointed out that other major establishments operating in the same region, including the international airport and multiple industrial units, regularly pay taxes to local bodies, contributing to civic infrastructure and development. Against this backdrop, Foxconn’s alleged non-payment has been termed discriminatory and detrimental to local governance.

Local elected representatives and residents have further claimed that the company has repeatedly ignored requests for transparency and dialogue. They alleged that despite several meetings and written communications with company officials, Foxconn has neither shared the necessary regulatory documents nor taken concrete steps to prioritise employment for local youth, as is often expected from large industrial projects in rural areas.

Residents also alleged that while local candidates were initially called for interviews during the recruitment phase, the company ultimately hired workers from outside the region, sidelining people from the surrounding villages. This, they argue, has fuelled resentment and a sense of betrayal among locals who had hoped the project would bring employment and economic opportunities to the area.

Amid growing dissatisfaction, local residents have warned that if their demands—particularly regarding local employment—are not addressed promptly, they will launch a large-scale protest later this week. The dispute has thus escalated beyond administrative notices, with the potential to develop into a wider public agitation unless the company engages with local authorities and communities to resolve the issues raised.


 

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