Karnataka High Court : Gram Panchayats Cannot Levy Property Tax in KIADB-Notified Areas

The Karnataka High Court has held that Gram Panchayats cannot levy property tax on properties situated within areas that are notified by the Karnataka Industrial Areas Development Board (KIADB).

The Court held that once an area is notified by the KIADB, the power to impose and collect property tax lies exclusively with the municipal authority, not the Gram Panchayat. 

The judgment came in response to a challenge against tax demands made by a Gram Panchayat even after the area had been included under KIADB. 

The Court emphasised strict adherence to statutory jurisdictional limits in matters of taxation.