Bangalore Palace (Utilisation and Regulation of Land) Ordinance, 2025 gives full control to the Government

Bengaluru: In a significant move, the Karnataka Cabinet last evening decided to promulgate an Ordinance allowing the Government to forgo the Rs. 3,011.66 crore Transferable Development Rights (TDR) payment mandated by the Supreme Court to the erstwhile royal family of Mysore.

Titled the Bangalore Palace (Utilisation and Regulation of Land) Ordinance, 2025, this measure comes amidst a contempt case in the Supreme Court, which had, on Dec. 10, 2024, directed the Government to provide the TDR within six weeks.

If approved by the Governor, the Ordinance will temporarily halt the acquisition of the Palace land. Furthermore, it allows the Government to limit compensation to Rs. 2.3 lakh per acre instead of the Supreme Court’s directive, which equates to nearly Rs. 200 crore per acre under the TDR guidelines.

The Ordinance effectively nullifies a previous proposal to issue TDR in exchange for 15 acres and 36 guntas of the Palace Grounds for widening the traffic-clogged Ballari and Jayamahal Roads that lead to the Kempegowda International Airport at Devanahalli.

The Ordinance grants the Government discretionary power over acquiring land for road-widening projects, casting doubt on the future of these much-needed infrastructure works. The dispute stems from the 1996 Mysore Palace Acquisition and Transfer Act, contested in the Supreme Court by members of the royal family. After the Cabinet meeting, Law and Parliamentary Affairs Minister H.K. Patil clarified that issuing TDR at this juncture could undermine the State’s position in the ongoing litigation.

“The civil appeals on the 1996 Act are still pending in the Supreme Court. Issuing TDR now would harm the State’s interests. Hence, the Ordinance is necessary to safeguard Karnataka’s development priorities,” Patil stated. The Ordinance provides the Government the authority to partially or wholly withdraw any basic infrastructure project that has been approved by a Court order or a previous government decision, he added.

Palace Grounds valuation

Spanning 472 acres and 16 guntas, the Palace Grounds were acquired under the 1996 Act, with Rs. 11 crore earmarked as compensation, part of which has been paid to the royal family, Patil said. Despite the Karnataka High Court upholding the Act’s constitutionality and no Supreme Court stay, the Apex Court, on Dec. 10, 2024, directed the Government to issue TDR for 62,475.27 square metres of land at prevailing guideline values.

The court fixed TDR rates at Rs. 2,83,500 per square metre for Ballari Road and Rs. 2,04,000 per square metre for Jayamahal Road. Patil stressed that fulfilling this order would burden the State with Rs. 200 crore per acre, jeopardising developmental projects, the Minister said.

“If we decide to pay such a quantum of money to a particular family, development works in Karnataka will be hit. This is an enormous financial burden. We cannot allocate Rs. 200 crore per acre for road widening projects. The Ordinance ensures that the State retains the right to decide whether to acquire or use this land. It aligns with the Supreme Court’s directives and serves Karnataka’s best interests,” Patil emphasised.

When questioned on the urgency, Patil cited the prolonged pendency of the case — nearly 28 years — and the absence of any stay from the Supreme Court. He reiterated the Government’s constitutional authority to promulgate the Ordinance, terming it supplementary to and supportive of the 1996 Act.

Regarding fate of road widening projects, Patil said, “These projects are not dropped. Further decision will be taken later.”