A division bench of the High Court of Karnataka has upheld a 2017 verdict of a single judge bench, which had quashed the Government’s 2015 controversial order to take back a land on which residential flats were built by Prestige Estates Projects Ltd., at Pattandur Agrahara village near Whitefield.
The division bench comprising acting Chief Justice Alok Aradhe and Justice J.M. Khai passed the order while rejecting the appeals filed by the State government and the Samaja Parivarthana Samudaya, NGO, challenging the single bench’s decision.
“There is no material on record to hold that the land has been either allotted or conveyed in contravention of the rules...” observed the Bench.
The single bench had quashed the two Government Orders issued on August 8 and 11, 2015 to take back 3 acres and 23 guntas of land on the allegation that M/s Joy Ice Cream Pvt Ltd., (JICPL), to which land was allotted, had illegally sold the land to Prestige Estates by violating the condition imposed by the deputy commissioner for using the land for developing a software park and serviced apartments.
Panic among residents
The orders to take back the land had triggered panic among the flat purchasers and the developer as over ₹100 crore was already spent for building residential apartment complex on the land.
The single bench had said, “Merely because a different establishment takes over...settled things cannot be unsettled thereby, jeopardising the rights of third parties.”
Meanwhile, division bench too has found that the State government in 2005 had allotted the land to JICPL for a sum of ₹5.3 crore without imposing any condition but it was the deputy commissioner who had introduced the condition in the allotment letter. However, said condition was withdrawn in 2012 as it was found contrary to 2005 order of the Government.
No conditions
The division bench also noted that Karnataka Industrial Areas Development Board (KIADB) had executed the absolute sale deed in favour of JICPL as the Government had not imposed any condition.
This land was acquired for industrial purpose in 1989 and was leased in favour of JICPL, which owned other parcels of lands around this land. However, the lease was discontinued following some dispute. Finally, in 2005 the Government accepted JICPL’s request for allotting the land for a sum.
Sold a month later
While KIADB in July 2006 had executed sale deed in favour of JICPL, which a month later had sold it to Prestige Estate, which had in 2010-12 got clearances to begin construction.
The division bench also declined to accept the claim that construction of residential apartment in an industrial area is contrary to the law while pointing out that the statutory authorities had permitted the construction, and such permissions were not questioned by any one.
