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The Karnatak High Court stated that a gram of Panchayats has no power to collect or collect taxes from industrial facilities based in industrial areas notified and by developing the Cardataka industrial areas (KIADB) under the provisions of the 1966 Karnataka Industrial Regions.
“The power to regulate and approve development activities, including the right to collect and collect tax within these industrial estates, is exclusively led by Kiadb. Gram Panchayat cannot usurp this power in the absence of a specific statutory grant,” the court said.
Justice Sachin Shankar Magadum approved the order and at the same time allowed the petitions filed breweries Kalpathar and PVT distillery. Ltd. And several other industrial facilities located in the industrial area of Sompura in Nelamangale near Bengalur. The petitioners questioned the announcement issued by Sompura Gram Panchayat and asked them to pay the real estate tax.
The problem of jurisdiction
The court stated that local authorities would only receive jurisdiction over industrial areas if the government issued a notice pursuant to Section 37 of the KIAD Act, which converts industrial areas from KIADB control to the local authorities concerned.
“Until such announcement is issued, jurisdiction Kiadb remains intact and exclusive. Furthermore, section 47 of the Kiada Act gives the prevailing effect by the provisions of the Act on any other Act, which is in accordance with its provisions. Panchayat into industrial facilities.
Published – 9 July 2025 01:27
