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BBMP, VAT and Labour department - Corrupt to the core

Reported on June 16, 2015 from Bangalore , Karnataka  ι Report #62021

Ease of doing business in India? You must be joking. Let some of us who have gone through some experiences recently share our pain. Please note that this is only about Bangalore.


We have been trying to obtain various registrations for our clients to start business in Bangalore. Please note these are small businesses and no complexities of a large entity are involved.Giving a few examples with names of corrupt guys. We challenge the authorities to do something if they are not part of this corruption.


1. VAT registration: The government fee is Rs500 to be paid online. The application form is to be filled up online. Then one has to go to designated VAT office and the LVO and inspector decides the security deposit and the bribe to be paid. The bribe can be anywhere between Rs 3000 to 10000. Prakash– Inspector of Koramanagala VAT office ; ChikkaGangiah of Madivala VAT office and Kalyannangar inspector whom we dealt with in last few months are corrupt to the core and demand bribes openly. We have seen how public too pays these bribes openly to get their job done. The LVO of Kalyananagar VAT office is himself a very notorious person who harasses businessmen who come for VAT registrations and compliance.

2. Trade License: Same story. Online application is a farce. Physical submission of documents is a must after online filing and then the harassment starts. Does anyone know why do doctors come for inspection for a shop to provide a Trade License in Bangalore ? These doctors are supposed to be Health Officers. BBMP is a most corrupt institution. Here the bribe can be anywhere from Rs 25000 to Rs 1 Lakh depending on what the Inspector and the so called senior Doctor / Health Officer see as your business potential. Dr Suresh of BBMP Bommanahalli and his cronies there are all corrupt and make lakhs of rupees each month.

3. Labour department: The online shops and establishment license application form is designed deliberately to fail. The inspector keeps rejecting online applications till you go and pay bribes which can be anywhere from Rs 3000 to Rs 10000 to get a license. They are fair guys here. They take bribes in proportion to the number of employees you have !
KarmikaBhawan on Bannerghata Road should be closed down as it is den for corruption.

Can someone do something about this? Government ? No- dont tell me they are unaware.

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