States » SouthPosted at: Oct 14 2026 4:28PM


Adani Green moves Karnataka HC against 1 pc property tax on solar plants

Bengaluru, Oct 14 (UNI) Adani Green Energy (UP) Limited has approached the Karnataka High Court challenging the state government's decision to impose property tax at one per cent of the property's value on solar power plants.
The company has challenged the Karnataka Grama Swaraj and Panchayat Raj (Grama Panchayat Taxes, Rates and Fees) Rules, 2025, notified on October 17 last year. It has also sought the cancellation of tax demand notices and assessment proceedings issued by gram panchayat authorities for the 2026-27 financial year.
In its petition, the company has argued that solar power plants are different from conventional industries and should not be taxed in the same way.
The government had earlier fixed an annual tax of Rs 5,000 per megawatt for renewable energy units, including solar power plants. The company said it had been paying taxes under this system based on government circulars issued in February 2018 and March 2020.
The company has a solar power plant in the jurisdictions of MB Halli, H Byadarahalli and Mattikere gram panchayats in Channapatna and Magadi taluks of Bengaluru South district.
According to the petition, the government later proposed increasing the annual tax to Rs 10,000 per megawatt. However, the final rules introduced in October 2025 classified solar power plants as regular industrial buildings and imposed property tax at one per cent of the property's value.
The company has alleged that the government made this change without explaining the reasons or consulting stakeholders in the renewable energy sector.
It has argued that solar power plants do not operate like conventional industries and that calculating tax based on property value, instead of electricity-generation capacity, would significantly increase the financial burden on renewable energy projects.
The company has also claimed that the new rules are discriminatory because some other categories of industrial buildings attract lower property tax rates.
It has further challenged the demand notices, alleging that the gram panchayat authorities did not follow the procedure prescribed under the Karnataka Grama Swaraj and Panchayat Raj Act, 1993.
The High Court's response to the petition was not available in the information provided.
UNI BDN
Tags: #Adani Green moves Karnataka HC against 1 pc property tax on solar plants
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