BMM Ispat Limited, situated in the 114-Danapur gram panchayat area, has accumulated ₹16 crore in unpaid taxes over the past two years. Documents accessed under the Right to Information Act reveal that the tax amount due for 2023-24 and 2024-25 stands at ₹8,34,14,123 for each year. Previously, the tax due until 2022-23 was ₹22,60,749. The panchayat had requested the company to update its tax records starting from 2023-24 and asked for documentation detailing land usage, building areas, vacant spaces, and more.
On March 3, 2024, the company provided the panchayat with information that its facilities covered a total area of 61,35,172 square meters, comprising various sections, including buildings, the processing unit, greenery, roads, and vacant land. Based on this data, the panchayat reassessed and set the tax at ₹8,34,14,123. Despite issuing three demand notices, the company has yet to settle the dues.
In response, BMM Company objected to the annual tax burden of ₹8 crore and proposed an agreement under Rule 202(1) of the Karnataka Gram Swaraj and Panchayat Raj Act, 1993. The company paid ₹22,60,749 in 2022-23 and significantly raised the amount to ₹90,42,996 in 2023-24, suggesting a 5% tax increase every three years from 2024-25 onwards. BMM also suggested that any agreement be reviewed at the gram sabha, but the Idakkoppa Panchayat resolved to discuss this in a general meeting. Multiple rounds of negotiations have been held, but consensus remains elusive, leaving the tax dispute unresolved.
The factory’s land also extends into Danayakanakere and G.Nagalapur village panchayats, covering 730 acres and 300 acres, respectively, including some residential areas. Danayakanakere panchayat reports an outstanding tax of ₹8.76 lakh, while G.Nagalapur panchayat’s dues total ₹57.50 lakh, according to the respective PDOs.
