New Delhi/Bengaluru: The Supreme Court (SC) this morning directed that Transferable Development Rights (TDR) worth Rs. 3,400 crore, under the Karnataka Stamp Act, 1957, be handed over to the legal heirs of late Srikantadatta Narasimharaja Wadiyar, the scion of the erstwhile Mysore Royal Family.

The TDR pertains to 15 acres and 39 guntas of Bangalore Palace Grounds land that had been acquired by the State Government for the expansion of Ballari Road and Jayamahal Road, connecting Bengaluru city to Kempegowda International Airport.

Transferable Development Rights (TDR), after the Royal Family sells them, allows landowners and builders to build over and above the permissible Floor Area Ratio (FAR).

A Division Bench of Justices M.M. Sundresh and Aravind Kumar had, in February, directed the Karnataka Government to deposit the TDR amount with the Supreme Court Registry within a week. Complying with the directive, the Government immediately deposited Rs. 3,400 crore worth of TDR.

Subsequently, in an interim application, the Government requested that the TDR not be released to the Royal Family. However, in today’s ruling, the Court rejected this plea and directed the Supreme Court Registry to disburse the TDR amount to the Royal Family and other petitioners after obtaining affidavits from them.

The Court firmly refused to entertain any further arguments and passed a clear order for the immediate release of the Rs. 3,400 crore TDR amount to   the petitioners.

In March this year, in an apparent attempt to block the issuance of TDR certificates, the Karnataka Government passed the Bangalore Palace (Acquisition and Transfer) Bill, 2025, replacing the earlier Bangalore Palace Utilisation and Regulation of Land Ordinance promulgated in January 2025.

Sibal argues for State

Senior Advocate Kapil Sibal, appearing for the State Government this morning, argued before the Court that the TDR should not be issued. He contended that the State is the rightful owner of the Bangalore Palace land by virtue of the 1996 Mysore Palace (Acquisition and Transfer) Act, and hence, there was no obligation to provide TDR.

“The petitioners are merely in possession. We are the owners of the 472 acres of land after the Act was passed. There is no question of granting TDR. As per the Act, they are entitled to only Rs. 11 crore as compensation and nothing more,” Sibal said.

He further stated that the amended 1996 Act empowers the State Government to utilise any portion of the Bangalore Palace land as it pleases for infrastructural development. However, the Supreme Court rejected these arguments, observing that the validity of the 1996 Act is part of a separate legal challenge that will be heard later. Therefore, the new provisions could not be applied retrospectively to affect the  current matter.

The Bench criticised the State Government for repeatedly violating earlier orders of the Supreme Court. “We have nothing more to say. The State Government must hand over the TDR to the petitioners,” the Court said.

Noting that the Rs. 3,400 crore TDR value has already been deposited, the Court directed the Registry to release the amount to the Royal Family and other petitioners upon receipt of                          their affidavits.

Senior Advocates Gopal Sankaranarayanan, A.K. Ganguli and Aditya Sondhi appeared on behalf of the petitioners.

Government made every attempt to avoid paying TDR: Raja Chandra

Speaking to Star of Mysore this morning, R. Raja Chandra, a member of the erstwhile Mysore Royal Family, said that the Government has used every means to delay payment — an Ordinance was promulgated, Bills were passed in Legislature and subsequently were amended also, and they have repeatedly flouted Supreme Court orders with impunity.

“This is the fourth time the Supreme Court has passed an order in our favour. Yet, we don’t know what the Government will do next. The Court itself has noted that the Government is a repeat contemnor, having disobeyed multiple Court orders without consequence. There’s been no punitive action, and that’s the core issue. Courts appear hesitant to penalise the Government, and this emboldens them to continue defying judicial directives,” he remarked.

He welcomed the Supreme Court’s directive for the Registry to disburse the TDRs to the petitioners but expressed concern over the next step.

“For TDRs to have value, we must be able to sell them. And for that to happen, the Government must sign and approve the transfer documents and officially acknowledge the sale. Whether they will comply or find new ways to delay or dodge is uncertain. This saga has become like the Mahabharata — never-ending. While the Pandavas endured 12 years in exile (Vanavasa) and one year in disguise (Ajnatavasa), we have suffered for more.