Court directive on commercial set-ups may target IT firms

Court directive on commercial set-ups may target IT firms
The Hindu

BMP has asked IT firms to pay property tax stipulated for commercial establishments

# Software companies not in the list of businesses permitted in residential areas
# Residents' associations' grouse is that IT firms cause congestion on roads
# Software professionals have bought apartments and have improved atmosphere in the neighbourhood
# Many software firms may pay more taxes and not relocate

BANGALORE: Koramangala, the suburb known for its information technology companies, upmarket residences and shopping complexes, may pay the price for its popularity.

The High Court of Karnataka's directive asking the Bangalore Mahanagara Palike (BMP) to conduct a survey of commercial establishments which have come up in residential areas, probably violating zoning laws, may target the IT firms.

Several major software companies and smaller ones are scattered all over the area. If the BMP adheres to the High Court directive, it may have to serve notices on these companies, which among them employ a large number of people. With the IT and biotech firms protesting against lack of infrastructure, this may have come at a particularly bad time, officials in the BMP say.

The Karnataka Municipal Corporations Act while empowering the BMP to enforce zoning laws as demarcated by a town planning authority, has no provisions for taking punitive action against violators. All that the civic body could do so far is to issue notices to the software firms asking them to pay property taxes applicable to non-residential properties. This apparently has little effect as Koramangala continues to attract more IT firms.

The Karnataka Town and Country Planning Act does permit about 31 types of businesses to be conducted in residential areas, ranging from grocery stores to hairdressers. The BMP's building bylaws permit 35 other types of businesses in residential zones. Software companies are not included in either list, the officials said.

Violation can be "compounded" and businesses not in the approved list can be asked to pay more taxes. Many software firms may just do that instead of relocating.

According to residents associations, it will be wrong to target software firms because they clearly belong to the non-polluting kind of industry unlike manufacturing units. The most they can be accused of is that they add to congestion on roads. "The IT firms and their employees, who have bought apartments in the areas, have changed the character of Koramangala as a good neighbourhood. It is crime free and if the BMP repairs all the roads, traffic too can be well regulated," office-bearers of many residents association say.

They point out that it will be better for the BMP to focus attention on improving civic amenities instead of asking IT firms to shut down and relocate.

The IT boom has not only brought its employees to the area but several businesses to meet their needs. The presence of high-income group in the area has resulted in the setting up of upmarket restaurants, departmental stores and even a big mall and a multiplex. All of them add to the revenue of the BMP, the residents say.