The Karnataka Industrial Areas Development Board (KIADB) has initiated stringent actions against numerous industrialists across the State for failing to fulfil project obligations on government-allotted land. The department issued notices to a total of 1,061 industrialists from all 30 districts of Karnataka throughout January, signalling an effort to ensure adherence to the Board’s terms.
Land unutilised
Under the terms set by KIADB, industrialists who were granted land leases for 10 years must complete project within five years of acquiring the lease. However, over the past decade, 1,061 industrialists from across the the State and Bengaluru have failed to complete construction projects, leaving a total of 7,002.93 acres of government land unutilised.
The provision for land allocation aims to bolster Micro, Small, and Medium Enterprises (MSMEs) and large industries to stimulate employment opportunities.
However, amidst the pandemic, many small and medium-scale industries are facing financial challenges, hampering their ability to invest and meet project deadlines, according to a KIADB official.
Mahesh M., Chief Executive Officer of KIADB, emphasised the Board’s commitment to reclaiming unused land, stating that 931.78 acres have already been recovered from 40 industrialists in recent months. He said that industrialists failing to meet construction deadlines will be served notices, and efforts are underway to reclaim a total of 7,002 acres of government land.
What procedure entails
The leasing procedure outlined by KIADB necessitates a 30% deposit upon land allocation, and remaining amount should be paid within three months. Industrialists failing to adhere to construction deadlines face a series of notices under the KIADB Act, culminating in the termination of lease agreements.
Notices have been issued across various sectors, including IT, hardware, manufacturing, and food parks. In Bengaluru city alone, 43 IT sector and 14 hardware sector industrialists have violated lease terms for 58 acres of land. Similar notices have been served in other districts.
