The Supreme Court on Monday agreed to hear, on Tuesday, Karnataka’s plea challenging the award of Transferable Development Rights certificates—totaling ₹3,011 crore—to the legal heirs of the former Mysore royal family.
The dispute centers on the state’s acquisition of 15 acres of Bengaluru Palace Grounds back in 1996.
State Argues TDR Law Can’t Be Retroactive
Senior advocate Kapil Sibal, for Karnataka, told a bench led by Chief Justice B.R. Gavai and Justice Augustine George Masih that Section 14B of the Karnataka Town and Country Planning Act—introduced in 2004 to allow TDR—does not apply to land compulsorily acquired under the 1996 Bengaluru Palace Act.
“This acquisition occurred under a 1996 law, and compensation of ₹11 crore was fixed. The concept of TDR didn’t exist at that time,” he said, stressing that Section 14B only benefits landowners who voluntarily surrender property.
Contempt Order Sparks New Challenge
On May 22, a separate bench (Justices M.M. Sundresh and Aravind Kumar) found the state in contempt and ordered issuance of the TDR certificates to the royals. Karnataka’s petition contends that using contempt proceedings to create new rights “amends a final judgment,” bypassing proper appeal channels.
Long-Running Legal Battle
The royal family first disputed the 1996 acquisition law in 1997; that appeal remains pending. Subsequent efforts by the state to build a road through part of the palace grounds ignited further litigation, leading to the recent contempt ruling.
The Supreme Court will hear Karnataka’s challenge on Tuesday, focusing on whether TDR provisions can be applied retroactively to land already acquired and compensated under an earlier statute.
(Inputs By Sambhav Sharma)
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