Karnataka moves SC against direction to issue Rs 3K-crore TDR certificates to royal heirs

The Karnataka Government on Monday moved the Supreme Court seeking a way out of its May 22 order to release Transferable Development Rights (TDR) certificates to the legal heirs of the erstwhile Mysore royal family towards acquisition of 15 acres of Bangalore Palace Grounds.

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On May 22, a Bench of Justice MM Sundresh and Justice Aravind Kumar had directed the Karnataka Government to issue TDR certificates worth Rs 3,011 crore to the royal heirs in a contempt proceeding.

On Monday, senior counsel Kapil Sibal mentioned the matter before a Bench of Chief Justice of India BR Gavai and Justice AG Masih, which wondered how it can review an order passed by another Bench of the top court.

“How can we sit in appeal over an order passed by another Bench?” the CJI asked. However, the Supreme Court agreed to list the plea for hearing on Tuesday.

However, Sibal clarified that the state government was not seeking to overturn the earlier order, but only to ensure that its legal concerns were properly addressed within the framework of the pending appeal.

He said the TDR provision -- introduced through a 2004 Amendment to the Karnataka Town and Country Planning Act -- cannot be applied retrospectively to land acquired in 1996 under the Bengaluru Palace Act.

He said the 15 acres were acquired before the TDR provision existed, and compensation was already settled under the original Act.

“This acquisition occurred under a 1996 law and compensation of Rs 11 crore was fixed. The concept of TDR didn’t exist at that time. Section 14-B, which permits TDR, was introduced in 2004, and applies only where landowners voluntarily surrender their land and not where the state acquires it compulsorily,” Sibal said.

The claimants’ counsel submitted that TDRs were already handed over last Friday and the direction was passed after considering all the contentions of the state government. He said the matter had become pointless as the TDRs had already been granted.

TDR certificates are a mechanism used in land acquisition to compensate landowners when their property is taken for public projects like road widening or infrastructure development.

The Karnataka Assembly passed the Bangalore Palace (Acquisition and Transfer) Act, 1996, for the acquisition of palace grounds in Bangalore. The royal family challenged the validity of the 1996 Act before the top court in 1997 and the petition is still pending.

Meanwhile, the state government sought to develop a road on a portion of the Bengaluru Palace Grounds, leading to litigations which ultimately resulted in contempt petitions.

“You cannot amend a final judgment or introduce new rights via a contempt proceeding,” Sibal said, questioning the contempt case verdict. He said the verdict failed to address his legal objections under Section 14-B of the Act.