The story so far
Even as the opposition BJP and Janata Dal (Secular) viciferously opposed it and called it an act of “political vendetta”, the Karnataka Legislative Assembly passed the Bangalore Palace (Utilisation and Regulation of Land) Bill, 2025, on March 6. It was passed in the Legislative Council on March 10.
The legislation arises out of the nearly a decade-old contempt case over the Bangalore Palace Grounds, which the Karnataka government has been fighting with the erstwhile royal family of Mysuru in the Supreme Court.
Replacing an Ordinance that was passed earlier, the Bill reserves the Karnataka government’s right to acquire or not acquire the Palace Grounds land for the widening of the traffic-choked Ballari Road and Jayamahal Road.
Apart from helping the State government address the contempt petition, the Bill is seen as a move to circumvent the top court’s order that had earlier directed the government to compensate the Mysuru royal family with Transferable Development Rights (TDR) worth ₹3,400 crore for taking over the land.
The compound wall for the Palace Grounds built at Jayamahal Road in Bengaluru.
| Photo Credit:
BHAGYA PRAKASH K
What does the Bill say?
The Bangalore Palace (Utilisation and Regulation of Land) Bill, 2025, empowers the State Government to utilise any portion of the Bangalore Palace for an infrastructure project, and to decide whether to go ahead with it, in whole or in part.
If the government proceeds with the project, it will pay the required compensation to the claimants for the portion of palace land utilised. The Bill defines “claimants” as those who have a right, title, or interest in the Bangalore Palace or the open space around it. However, if the State decides to drop the project, it holds the right to restore possession of the part of the Bangalore Palace land which was sought. While it will bear the entire expenditure for this, it will not compensate the claimants.
The Bill states that for the purpose of compensation, the guidance value will be calculated as of November 21, 1996, according to section 8 and section 9 of the Bangalore Palace (Acquisition and Transfer) Act, 1996. This is in direct contradiction to the apex court’s directions to calculate the compensation according to the guidance value of Stamps and Registration Department, revised in 2023-24, under undersection 45B of the Karnataka Stamp Act, 1957.
The Bill says that the compensation paid to the claimants will be proportionate to the extent of the land used and will include TDR. Granting the government absolute authority, the Bill states that whatever compensation is prescribed under it is final, and the claimants have no other right to compensation.
In the event of a dispute over compensation between claimants, the Bill gives power to the State government to deposit the compensation before the Commissioner, who will be appointed by the government. None of the claimants can withdraw any part of this compensation without furnishing a copy of the final order from a civil court to the Commissioner. In all matters of release of compensation to the rightful recipient among the legally embattled claimants, the decision of the Commissioner is absolute.
In another measure that seeks to give the government full control over the property, the Bill protects officers of the State Government or its instrumentalities (such as BDA and BBMP) from proceedings, civil or criminal, or any punishment for an “action taken in good faith”.
Why was the land acquired?
The Bangalore Palace Grounds, located in the heart of Bengaluru city, is spread across 472 acres and 16 guntas of expansive land. In 2009, the Karnataka government decided to notify 15 acres and 17.5 guntas (62,475 square metres) for widening stretches on the traffic-choked Ballari Road and Jayamahal Road.
A view of Jayamahal Road in Bengaluru.
| Photo Credit:
HANDOUT E MAIL
While the Bruhat Bengaluru Mahanagara Palike (BBMP) calculated the TDR value, Bangalore Development Authority (BDA) issued a notice to provide TDR compensation of ₹1 crore to the property owners — the erstwhile royal family of Mysuru. In July, 2024, the BDA took possession of the palace grounds and handed it over to the BBMP.
How was the valuation done?
Amid confusions that the TDR compensation would be ₹1,400 crore, the BBMP had clarified that the calculation was done based on the provisions under the Bangalore Palace (Acquisition and Transfer) Act, 1996, passed for the sole purpose of acquisition and transfer of the palace property.
With the BDA fixing a rate of ₹120.68 per square metre (based on the 1996 value of the land), officials said that 472 acres of palace land would be worth ₹11 crore, and 15 acres would be valued at ₹60 lakh, and 1.5 times the sum would come to around ₹1 crore. However, the erstwhile royal family decided to contest this “measly valuation” of the sprawling palace land, whose current market value is estimated to be around ₹100 crore per acre.
Moreover, in June 2023, when the BBMP issued a notification for acquisition of a portion of palace land for widening of Jayamahal Road from Mehkri Circle to Cantonment Railway Station, it had mentioned the “market value of the land” and had not invoked the value of land as per the Palace Acquisition Act.
What were the Supreme Court’s directions?
On December 10, 2024, the Supreme Court ruled in favour of the Mysuru royals, ordering Karnataka government to issue fresh TDR as per the guidance value of adjoining lands, this time in line with the Karnataka Stamps Act, 1957.
The Supreme Court fixed the value of TDR for Ballari Road at ₹2,83,500/sqm and ₹2,04,000/sqm for Jayamahal Road as per the prevailing guidance value under Section 45B of Karnataka Stamp Act, 1957. Under the TDR, the compensation is to be 1.5 times the market value or the guidance value, whichever is higher. This took the total value of the TDR to an estimated ₹3,011.66 crore.
What is the State government’s stand?
Following the setback, the Karnataka government initially decided to drop the proposal to acquire the palace land, arguing that the TDR value fixed by the apex court had made the acquisition financially unviable.
“The Supreme Court rate for the TDR to be given for land acquisition is expected to cause financial burden on the State exchequer and will have adverse impact on financial discipline,” a Karnataka Cabinet note said. The Cabinet also felt that financially unviable projects are against public interest and public policy.
Six weeks later, on January, 2025, the State government promulgated the Bangalore Palace (Utilisation and Regulation of Land) Ordinance, 2025. Taking a stern view of the State government’s changing stands, the Supreme Court on February 27 yet again asked the Karnataka government to deposit with it the TDR certificates of over ₹3,000 crore within 10 days.
Days later, even as the Bangalore Palace (Utilisation and Regulation of Land) Bill was tabled and later passed in the Karnataka Legislative Assembly during the Budget session, the Karnataka Cabinet also decided to deposit TDR certificates worth ₹3,400 crore with the Supreme Court.
However, sources said, it will be done with a request to the Supreme Court to keep the TDR certificates with it for now and take a call on whether to pay this to the royal family, based on the outcome of the petition filed before it over ownership of Bengaluru Palace Grounds.
Published – March 11, 2025 09:00 am IST