Belagavi City Corporation (BCC) has levied a penalty of ₹7,08,66,578 on Vega Funmobile Private Limited over alleged tax evasion and violations of construction regulations. The action follows findings of discrepancies between the declared and actual built-up area, along with improper tax payments under the commercial slab instead of the applicable industrial category.
As per BCC officials, the company admitted to the violations during the inquiry, prompting action under Section 112(C) of the Karnataka Municipal Corporations Act, 1976. BCC Commissioner Shubha B passed the order after three hearings held on January 31, April 15, and April 21, 2025.
In accordance with the Act, the company must deposit 50% of the penalty before appealing to the BCC standing committee on taxation. “The penalty was calculated after deducting previously paid taxes,” Shubha told reporters. She added that the 24,000 sq ft structure in question was entirely unauthorised, built without official permits. Despite this, the firm had been paying taxes since 2004 under the self-assessment scheme, which lacked official verification.
According to BCC, Vega Funmobile had signed an MoU with BEMCO Company to lease the land in August 2002. Initially, taxes were paid for vacant land in 2002–03. Though building permission was granted in December 2003, no construction was found in 2004–05. Still, taxes were paid under the commercial category despite the usage being industrial. The commissioner launched a detailed probe after identifying irregularities. Following the final hearing, an order dated April 25 instructed the company to pay the full tax and penalty amount to the BCC.
