Palace land: Karnataka Cabinet for ordinance to bypass TDR

Bengaluru: The Karnataka Cabinet on Friday decided to promulgate an ordinance empowering the government to not pay the Transferable Development Rights (TDR) of Rs 3,011 crore, as ordered by the Supreme Court, to the erstwhile royal family of Mysore while acquiring 15 acres and 39 guntas of the Bangalore Palace land for widening the Ballari and Jayamahal roads.

The ‘Bangalore Palace (Utilization and Regulation of Land) Ordinance, 2025’, comes in the backdrop of a contempt case as the Supreme Court’s ruling on December 10, 2024, mandated the government to provide the TDR within six weeks.

The ordinance has stated that the Supreme Court’s judgment is “not consistent” with the total compensation determined as per the Bangalore Palace Act. The ordinance will now be sent to the Governor, seeking his assent.

If the ordinance gets Governor’s approval, it will temporarily put on hold the acquisition of the palace land.

As per the ordinance, the government will now only have to pay Rs 2.3 lakh per acre instead of the TDR mandate of approximately Rs 200 crore per acre.

Thus, it strengthens the Bangalore Palace (Acquisition and Transfer) Act, 1996, according to which the government will have to pay a compensation of only Rs 11 crore to the erstwhile royal family for obtaining the entire 472.16 acres of the Bangalore Palace land.

Briefing reporters after the Cabinet meeting, Law and Parliamentary Affairs Minister H K Patil said: “We cannot pay Rs 3,011 crore for 15 acres as it will endanger the state in terms of development. We have to keep in mind the state’s exchequer. The government’s money is from all sections of society and we cannot provide thousands of crores just for one family or group.”

Explaining the ordinance, Patil noted that they will now be empowered to take or not to take the land.

Since the original case relating to the Constitutional validity of the Bangalore Palace Act is pending before the Supreme Court, the minister noted that even if the government eventually wins the case, it cannot take back a TDR that's already passed.

“The financial effect of this judgment of the honourable Supreme Court will be grave on the exchequer of the state of Karnataka, and upon the urban planning of the city of Bengaluru,” the ordinance notes.

During the discussions in the Cabinet, Deputy Chief Minister D K Shivakumar, who is also the Bengaluru Development Minister, is reported to have wondered whether the ordinance would stand the scrutiny of the apex court.

As per the ordinance, the valuation as per the Bangalore Palace Act shall be deemed to be the guidance value under section 45B of the Karnataka Stamp Act, 1957.