Cabinet to deposit Transferable Development Rights (TDR) certificates worth Rs. 3,014 crore with Supreme Court

Bengaluru: In a bid to avoid issuing Transferable Development Rights (TDR) certificates worth Rs. 3,014 crore to the erstwhile Mysore royal family for a road-widening project, the Karnataka Government has tabled the Bangalore Palace (Acquisition and Transfer) Bill 2025,  in the ongoing Assembly session.

The Bill, which replaces the Ordinance issued in January 2024, follows a Supreme Court directive instructing the State Government to provide TDR certificates to the Mysore royal family for the proposed widening of Ballari and Jayamahal Roads in Bengaluru.

The TDR pertains to 15 acres and 17 guntas of land required for the project, which the State Government is yet to acquire. The Bill is set to take effect from Jan. 27, pending its passage and the Governor’s assent.

Empowering the Government to exercise control over Bangalore Palace land, the Bill aligns with the Bangalore Palace (Acquisition and Transfer) Act, 1996, whose Constitutional validity remains under Supreme Court scrutiny.

Additionally, the Bill authorises authorities to withdraw any infrastructure project involving Bangalore Palace land, regardless of prior Court rulings or previous Government decisions.

Under the 1996 law, Bangalore Palace land is deemed vested with the State Government. The total value of the entire 472.16-acre estate was determined at Rs. 11 crore as per the 1996 law, which has not been stayed by the Supreme Court, the Bill states.

In December 2024, the Supreme Court ordered the issuance of TDRs to the Wadiyars, a move opposed by the State Government. Following multiple Cabinet discussions, the Government promulgated an Ordinance in late January.

Ownership of the Palace land remains a contentious issue in the Supreme Court, with the State Government maintaining that the Bangalore Palace Act, 1996, justifies its acquisition.

Last week, the Supreme Court directed the State Government to deposit TDR certificates worth Rs. 3,014 crore.

Previously, the Government had passed an Ordinance signalling the abandonment of the road-widening plans rather than issue TDRs worth Rs. 3,014 crore.

However, the Supreme Court took a stern view of the Government’s shifting stance. In December 2024, in a contempt case, the Court ordered the Government to grant TDRs based on prevailing guidance values.

Meanwhile, the Karnataka Government has now decided to deposit Rs. 3,014 crore worth of TDR with the Supreme Court. This decision by the State Cabinet comes with a plea that the deposited amount should not be handed over to the Mysore royal family until the ownership dispute over Palace Grounds is resolved.