Issue fresh TDR as per guidance value for Palace Grounds land in Bengaluru: Supreme Court orders Karnataka govt  

Supreme Court orders Karnataka government to issue fresh TDR to Mysuru royal family based on guidance value of Palace Grounds land.

The Karnataka government has suffered a setback in the Palace Grounds case, as the Supreme Court on Tuesday (December 11, 2024) ordered it to issue fresh Transferable Development Rights (TDR) to the members of the Mysuru royal family, as per the guidance value of adjoining lands, in the next six weeks. 

The civic agencies had issued the royal family TDR worth ₹1 crore for 15 acres 17.5 guntas of land on Ballari Road and Jayamahal Road acquired for road widening. They claimed to have calculated the compensation based on Bangalore Palace (Acquisition and Transfer) Act, 1996, and not as per the Karnataka Stamps Act, 1957, in June earlier this year and took possession of the land in July. However, members of the royal family challenged the valuation of the land. 

Now, with the apex court ordering the agencies to issue fresh TDR as per guidance value of adjoining properties in line with the Karnataka Stamps Act, 1957, the value of TDR to be given to the royal family is expected to exceed ₹2,000 crore. The guidance value in the area as per revised values in 2023-24, is ₹2.83 lakh/sqm on Ballari Road and ₹2.04 lakh/sqm on Jayamahal Road. 

“....the State and its authorities have intentionally dragged its feet for long number of years and having attempted to tap all the mirage remedies and left with no other option and to stave off these proceedings have passed the orders.. ...to issue the TDR on an estimate value which is not accepted by this Court.. still an opportunity to issue TDR as per market value as envisaged under Karnataka Stamp Act, 1957…ought to be extended to the respondents/contemnors,” the apex court order of December 10, passed by Justices M. M. Sundresh and Aravind Kumar read. The court further imposed a cost of 1 lakh on the respondent authorities for creating a “faux pas situation” to be paid to each of the petitioners. 

In its order, the apex court also pointed out that “the State itself has categorically admitted in its Government Order dated 23.02.2021 the value of the TDR to be issued in favour of the claimants as per guidance value. However, it has determined the value as 0.4 times of the land value…on the premise that it is to be construed as agricultural land”. However, arguing that the said land was “utilized as a private residence of the then Maharaja of Mysore for a long number of years and it is situated in the heart of the city”, the court rejected this premise as well. 

“Hence, we are of the considered view that the State and its instrumentalities and/or the competent authority being the BBMP is required to issue the TDR as per the then prevailing guidance value fixed under Section 45B of Karnataka Stamp Act, 1957 namely ₹2,83,500/sqm for Ballari Road and ₹2,04,000/sqm for Jayamahal Road as indicated under the notifications issued under Section 45B of the Karnataka Stamp Act, 1957,” the apex court said. 

However, this order would have no bearing on the respective contentions of both the parties in pending appeals or on any other collateral proceedings, the apex court clarified.