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Time of India

Sanand GIDC firms get panchayat tax notices

Ahmedabad:At least 300 industrial units including multinational corporations operating out of Sanand GIDC estate have received property tax notices from Hirapur Gram Panchayat, warning of prosecution, bank account attachment, and property seizure for non-payment. The move has reignited protests over double taxation, despite the state government's 2022 announcement to end such overlaps in GIDC estates—a policy that is yet to be implemented. As a result, industries remain caught in the crossfire between state policy inaction and local panchayat enforcement The Sanand GIDC estate, which the state government is positioning as a model industrial hub, spans across four different village panchayats. Industrial units are asked to pay service charge to the GIDC, and property tax also to local gram panchayats—despite receiving no municipal services from the local authority. Ajit Shah, President of the Sanand Industries Association (SIA), said, "More than 150 GIDC estates across the state face this issue of double taxation. In 2022, the state government announced it would implement the Ahmedabad model—wherein 75% of the property tax collected is returned to the industry association by the local authority—but this has not been put into effect. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Roar into Style! Leopard Print Slim Fitting Dress! Undo Unleash Your Wild Side: Leopard Print Slim Dress! Undo Level Up Your Look: Men Tracksuit with Hoodie! Undo Get the Look: Rhinestone Juicy Sweatsuit - Shop Modefash! Undo Complete Your Look: Women's 3-Piece Sweatsuit - Undo Chic Comfort! Women's 3-Piece Sweatsuit. Undo Shop Exclusive Deals & Save Big! Undo Modefash: Ultimate Comfort - Men's Tracksuit with Hoodie! Undo Sparkle & Shine: Trending Rhinestone Juicy Sweatsuit! Undo Don't Miss Out! Exclusive Deals at Undo Due to this inaction, we have stopped paying property tax. " "Now, Hirapur Panchayat has issued notices threatening attachment of some bank accounts, prosecution, and property seizure under various acts. We strongly oppose this. We demand that the state government either implement the 75:25 model or officially notify all GIDC estates, thereby eliminating the issue of dual taxation," Shah added. When queried about the issue, a company official said on condition of anonymity, " "All the facilities such as water supply, roads, drainage, sanitation, and waste management are provided by GIDC, for which we regularly pay service charges. The gram panchayat does not offer any facilities to industrial units. A petition has been filed in the Gujarat High Court challenging the legal jurisdiction of gram panchayats over GIDC plots. " The issue is proving especially problematic for multinational corporations (MNCs), which make up a significant part of Sanand GIDC's industrial base. Many local officers say they are struggling to explain the dual tax demands to their global headquarters, adding to operational complications and damaging investor confidence. Sanand shot to global prominence with the Tata Nano project, and its GIDC estate now hosts 54 multinational firms and around 600 domestic industrial units. According to the association, of 1,200 hectares of saleable land in the estate, over 1,000 hectares have already been allotted to industry. Ahmedabad:At least 300 industrial units including multinational corporations operating out of Sanand GIDC estate have received property tax notices from Hirapur Gram Panchayat, warning of prosecution, bank account attachment, and property seizure for non-payment. The move has reignited protests over double taxation, despite the state government's 2022 announcement to end such overlaps in GIDC estates—a policy that is yet to be implemented. As a result, industries remain caught in the crossfire between state policy inaction and local panchayat enforcement The Sanand GIDC estate, which the state government is positioning as a model industrial hub, spans across four different village panchayats. Industrial units are asked to pay service charge to the GIDC, and property tax also to local gram panchayats—despite receiving no municipal services from the local authority. Ajit Shah, President of the Sanand Industries Association (SIA), said, "More than 150 GIDC estates across the state face this issue of double taxation. In 2022, the state government announced it would implement the Ahmedabad model—wherein 75% of the property tax collected is returned to the industry association by the local authority—but this has not been put into effect. Due to this inaction, we have stopped paying property tax. " "Now, Hirapur Panchayat has issued notices threatening attachment of some bank accounts, prosecution, and property seizure under various acts. We strongly oppose this. We demand that the state government either implement the 75:25 model or officially notify all GIDC estates, thereby eliminating the issue of dual taxation," Shah added. When queried about the issue, a company official said on condition of anonymity, " "All the facilities such as water supply, roads, drainage, sanitation, and waste management are provided by GIDC, for which we regularly pay service charges. The gram panchayat does not offer any facilities to industrial units. A petition has been filed in the Gujarat High Court challenging the legal jurisdiction of gram panchayats over GIDC plots. " The issue is proving especially problematic for multinational corporations (MNCs), which make up a significant part of Sanand GIDC's industrial base. Many local officers say they are struggling to explain the dual tax demands to their global headquarters, adding to operational complications and damaging investor confidence. Sanand shot to global prominence with the Tata Nano project, and its GIDC estate now hosts 54 multinational firms and around 600 domestic industrial units. According to the association, of 1,200 hectares of saleable land in the estate, over 1,000 hectares have already been allotted to industry.