IKEA pays ₹65 lakh to BBMP for license renewal

Swedish home furnishing major IKEA’s store at Nagasandra in in Bengaluru. File image.
| Photo Credit: Special arrangement

IKEA India Private Limited has paid a total of ₹65.93 lakh, including penalties, for renewing its business license to the Bruhat Bengaluru Mahanagara Palike (BBMP), said H.C Girish, Dasarahalli Zonal Commissioner.

In a release issued on Thursday, it is said the company initially obtained its business license from the BBMP on May 13, 2022, and renewed it for five years. However, during an inspection conducted on January 8, 2025, by health officials of the civic body, it was found that IKEA was operating certain units—4021 HP horsepower units, aerated water, soft drinks, and bottled water businesses—without the necessary licenses.

Following this, the BBMP issued notices demanding payment of dues for the period between 2022-23 and 2026-27, amounting to ₹65.93 lakh. Despite two prior notices, IKEA did not respond. Subsequently, a third notice was issued on February 20, 2025.

Responding to the notice, IKEA cleared the dues on February 25 by submitting a demand draft in favor of the BBMP Chief Commissioner, Tushar Giri Nath.

In a statement, the company said: “IKEA complies with the law of the land. We have paid this money under protest to meet the BBMP deadlines. This is subject to discussion with BBMP regarding the details of the license. Our operations are 100% legal and we will seek clarification from the authorities and take further steps.”