New Delhi – In a significant blow to the Karnataka government, the Supreme Court has ordered it to immediately issue Transferable Development Rights (TDR) worth ₹3,000 crore to the royal family in connection with the contentious Bengaluru Palace land dispute.
The two-judge bench headed by Justice Aravind Kumar issued the interim directive on Thursday, instructing the state to comply without delay. The case pertains to over 15.36 acres of prime land near the Bengaluru Palace grounds, which the government had sought to acquire for road widening.
Following a prior direction from the court, the Karnataka government had deposited TDRs worth ₹3,400 crore with the Supreme Court registrar. However, the royal family’s legal counsel had objected, demanding that the rights be released directly to them rather than held in escrow.
Despite the state’s resistance, including its move to invoke an executive ordinance (Sugreevajnye) to delay or avoid TDR issuance, the Supreme Court dismissed the government’s plea and ruled in favour of the royal family.
Senior advocate Kapil Sibal, appearing on behalf of the state government, had argued that the land had not yet been fully utilized, and questioned how TDR could be granted for property not actively used. However, the Supreme Court rejected this argument, reaffirming the need for fair compensation.
The court had previously instructed the government to deposit the TDR as an interim measure, which has now been converted into a direction to issue it to the beneficiaries.
The royal family had also filed a contempt petition against the Karnataka government, citing its delay in complying with the compensation order and the imposition of the executive ordinance.
The dispute, which dates back years, intensified after the Congress-led government attempted to acquire the land without what the court deemed adequate or timely compensation.
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The ruling is expected to trigger political ripples, especially with the opposition BJP already slamming the Siddaramaiah-led government over its handling of the issue. The government’s use of an ordinance to delay compensation is likely to come under scrutiny in the upcoming legislative session.
This judgment not only reaffirms the judiciary’s stance on property rights and compensation but also significantly dents the state government's position in one of Karnataka’s most high-profile land disputes.