Mysore royal family to get Rs 3,000 crore compensation for Palace Grounds

Bengaluru: The Supreme Court has said that the state government should give Rs 3,000 crore in the form of Transferable Development Rights (TDR) certificate to the legal heirs of the Maharaja of Mysore within six weeks to acquire 15 acres 39 guntas of land adjoining Jayamahal Road and Bellary Road. This new development comes after Tuesday’s Supreme Court verdict, which goes against the government’s recent stand.

As per the verdict, the Bruhat Bengaluru Mahanagara Palike (BBMP) has to fix a guideline value of Rs 2,83,500 per square metre for the Bangalore Palace land adjoining Bellary Road and Rs 2,04,000 per square metre for Jayamahal Road. This will result in a TDR compensation of approximately Rs 3,000 crore or Rs 194 crore per acre. The area is set to be surrounded by multi-storey buildings as builders can load TDR certificates worth Rs 3,000 crore to build an additional construction area of about 3 lakh sq m.

In April 2024, the state government had fixed the value of the palace land at Rs 120.68 per sq m as per the Bangalore Palace (Acquisition and Transfer) Act, 1996. The Supreme Court, in its judgment, took into account the prevailing guide value in the adjoining areas to fix the market value, which is approximately 2,00,000 times higher than the government’s estimate.

However, it is worth noting that the government has fixed a value for the Bangalore Palace land, but it has no legal backing as the Revenue Department has not indicated a guidance value under Section 45(b) of the Karnataka Stamp Act, 1957. The BBMP had written several letters to the Stamps and Registration Department to convey the value of proper guidance, but there was no response.

Social activists had criticised the then Commissioner of Stamps and Registration Department, Mamata B R, and the Principal Secretary of the Revenue Department, Rashmi Mahesh, for failing to perform their duties in the public interest. “The government’s complete negligence will lead to the loss of the entire palace property. This is clearly a huge scam involving the real estate mafia,” said Karnataka Rashtra Samithi, a political outfit, in a statement on the verdict.

The party had written to the government in March seeking action on the issue, but the government’s wilful negligence is causing an unbearable burden on the state exchequer and the plight of Bengaluru. The party has demanded that the government take immediate action against the ministers and officials concerned.

“On two separate occasions, the Supreme Court has ruled that no property can be acquired for public purposes by promulgating an ordinance and without providing a market value. However, the government is not ready to give TDR equal to the prevailing market value. We assure you that if the Bangalore Palace Act 1996 is upheld by the extended bench, the money encashed will be returned,” petitioner Chaduranga Kantaraj Urs had said.