The High Court of Karnataka on Wednesday permitted the State government to seek modification of the order from the apex court on utilising Bangalore Palace property for widening Ballari and Jayamahal roads as the government pointed out that a “blunder” has resulted in offering Transferable Development Rights (TDR) worth ₹13,396 crore to occupants of the palace properties as against a total of ₹11 crore compensation fixed for the entire 472 acres of palace property in the 1996 law.
Purpose was to widen road
A Division Bench comprising Chief Justice Abhay Shreeniwas Oka and Justice S. Vishwajith Shetty passed the order after the government submitted the complete details to be placed before the apex court for seeking modification of 2014 order while observing that there is no dispute that these stretches of roads will have to be widened.
The value of the TDR for 15 acres 39 guntas (64,653 sq mts) to be utilised for road widening would amount to ₹13,396 crore as against the total compensation of ₹11 crore fixed for the entire Palace property, measuring 472 acres, in the Bangalore Palace (Acquisition) Act, 1996, the Government told the High Court.
The Government of Karnataka pointed out that TDR was offered based on the wrong action of the then Commissioner of the Bruhat Bangalore Mahanagara Palike (BBMP) in 2009.
The then Commissioner erroneously communicated directly to the occupants of Palace properties offering TDR in lieu of utilising 64,653 sq mts land that resulted in the government seeking permission from the apex court in 2014 to offer TDR, the Government has pointed out in its February 23, 2021 decision to seek modification of the 2014 order of the apex court.
Interestingly, the government has pointed out that on earlier two occasions, 13,000 mts and 8,510 sq mts of palace properties were utilised for road widening at Vasanthnagar and for Mekhri underpass during 1999 and 2000 respectively. And payment of compensation was made by calculating price per acre on the basis of ₹11 crore fixed for the entire land in the 1996 Act after taking permission from the apex court.
It was “a blunder” by the then Commissioner to offer TDR when the apex court had earlier permitted compensation in terms of the 1996 Act, the government explained while pointing that the government need to pay only around ₹37 lakh for using 64,653 sq mts as per compensation scheme of 1996 Act.
Ownership of property
The government also said TDR can be issued only to the owners of property and the ownership of palace property vests with the government after the High Court 1997 upheld the acquisition law and the apex court had only ordered maintaining status quo without staying the Act.
The government also pointed out that it would be not possible to recover TDR certificates worth ₹13,396 if ultimately the apex court upholds the 1996 Act as the certificates can be sold immediately to real estate developers by the occupants of Palace properties.
