SC: Karnataka Government Dragged Feet On Issuing TDR For Acquired Land Of Bangalore Palace Ground

The top court gave one final opportunity to report compliance within a time frame and scheduled the matter on January 22, 2025.

New Delhi:The Supreme Court on Tuesday directed the Karnataka government and Bengaluru Bruhat Mahanagara Palike (BBMP) to issue transferable development rights (TDR) as per the Karnataka Stamp Act to the legal heir of SDN Wadiyar for the land of Bangalore Palace ground. The land was sought to be acquired for the widening of Bellary and Jayamahal roads.

A bench comprising Justices M M Sundresh and Aravind Kumar said, "The state and its authorities have no doubt dragged their feet in implementing the orders of the court" and added that they attempted to tap all the mirage remedies to stave off the orders passed by this court in the past.

"Having dragged its feet for years in implementing the orders of this court the respondents seem to have conceptualised a novel method to overreach the orders of this court and we say so for the simple reason that affidavit of the compliance does not indicate or clearly admit that the TDR certificate being issued is in accordance with the extant TDR Rules but it is on an assumed value," said the bench, while dealing with a batch of contempt petitions.

The bench said the subject property was utilised as a private residence of the then Maharaja of Mysore since long number of years and it is situated in the heart of the city of Bengaluru.

"There cannot be any cavial to the fact that TDR is required to be issued as per TDR Rules. In fact, not dwelling upon further on this aspect, it can be safely concluded that valuation of the subject land even according to the State was determined as per the guidance value then prevailing but restricted it to 40% of the guidance value by treating it as agricultural land without any basis whatsoever," said the bench.

The bench said notifications issued under Section 45B of the Karnataka Stamp Act prescribes the guidance value and this value alone ought to have been adopted and there cannot be any reduction or subtraction in that regard.

"Thus, any amount of plea raised by the contemnors on the ground of financial hardship or otherwise would be in contravention of the order passed by this court on 21.11.2014, 17.05.2022 and 19.03.2024," said the bench.

The bench said it is of the considered view that the State and its instrumentalities and/or the competent authority being the BBMP is required to issue the TDR as per the then prevailing guidance value fixed under Section 45B of Karnataka Stamp Act, 1957 namely 2,83,500 per sq. meter for Bellary Road and 2,04,000 per sq. meter for Jayamahal road as indicated under the notifications issued under Section 45B of the Karnataka Stamp Act.

The bench said still an opportunity to issue TDR’s as per market value as envisaged under Karnataka Stamp Act, 1957 ought to be extended to the respondents/contemnors and gave six weeks’ time for the purpose.

The bench directed each of the contemnors shall be paid a sum of Rs one lakh each towards the cost of these proceedings on account of the faux pas situation that has been created by the respondent authorities.

The Karnataka government contended that if the compensation was required to be paid in terms of the award passed under the Act of 1996, then for the extent of 15 acres and 39 guntas the compensation payable would be Rs. 37,28,813. However, if the TDR certificate is to be issued as per TDR rules for the said extent of 15 acres 39 guntas, it would result in 13,91,742 sq. feet additional built up area constructable in the city of Bengaluru and approximately it would be equivalent to the notional value of Rs.1,396 crores” after deducting 60% of the guidance value.

The apex court gave one final opportunity to report compliance within a time frame and scheduled the matter for examining the compliance of its order on January 22, 2025.