Writ Petition No. 17539 of 2004 (LA-KIADB), Writ Petition No. 30979 of 2004 (LA-KIADB) and Writ Petition No. 17211 of 2009 (LA-KIADB). Case: 1. Sri. P. Narayanappa, 2. Kaverappa, Venkataswamy, Sakappa and Venkatesh, 3. Royal Fragrances Private Limited Vs 1. The State of Karnataka, The Karnataka Industrial Area Development Board, The Special Land Acquisition officer and M/s. Royal Fragrances Private Limited, [Alongwith Writ Petition Nos. 17545, 17541, 17543 of 2004 (LA-KIADB) and Writ Petition No. 4631 of 2007 (LA-KIADB)], 2. The State of Kamataka and Ors., [Alongwith Writ Petition No. 30981 of 2004 (LA-KIADB)], 3. The State of Karnataka, The Karnataka Industrial Area Development Board, Patel Jetalal Ramaji and Patel Hiralal Murji Varani. High Court of Karnataka (India)

Order:

Anand Byrareddy, J.

1. Heard the learned counsel for the parties. In WP 17539/2004, it is claimed by the petitioner that he is the owner in possession of lands bearing survey No. 54/2 measuring 22 guntas and survey No. 54/5 measuring 21 guntas of Devarabisanahalli, Varthur Hobli, Bangalore East Taluk. It transpires that notifications under Section 3(1) of the Karnataka Industrial Area Development Act, 1966, (Hereinafter referred to as the 'KIAD Act', for brevity) was issued and duly published in the Karnataka gazette as on 10.12.2001, declaring an area, including the above, as an "industrial area". Notifications under Section 1(3) of the KIAD Act, applying the provisions of Chapter VII of the Act to the lands and a Preliminary notification under Section 28(1), were simultaneously issued and duly published in the official gazette. The notifications indicated that the lands were being acquired for the benefit of the Karnataka Industrial Area Development Board (Hereinafter referred to as the 'KIADB', for brevity). The petitioner is said to have filed his objections to the same, except that there was no opportunity to file any objection to the notification under Section 3(1) of the KIAD Act.

The petitioner has stated that apart from a total extent of 21 acres of land of Devarabisanahalli, vast extent of lands of Bellandur, Kariyammana Agrahara etc., totally measuring 650 acres was sought to be acquired purportedly for the purpose of setting up industries. The final notification issued under Section 28(4) of the KIAD Act dated 23-2-2004 had also indicated the same purpose. However, it was thereafter learnt by the petitioner that the acquisition is for the benefit of M/s. Royal Fragrances Private Limited, the fourth respondent herein, whom the petitioner suspects to be only interested in the land as real estate and is not expected to be used by the said company to set up any industry.

The petitioner contends that the State Government and the KIADB had initiated the acquisition proceedings at the behest of the Directorate of Industries and Commerce and the Karnataka Udyog Mitra as it was intended that the lands were to be acquired for the benefit of the fourth respondent on the pretext that the said respondent had proposed to establish an Information Technology Park and a High Level Committee had mechanically accepted the claim of the fourth respondent as to its requirement of 4 lakh Square Feet of land for the said project. The petitioner would contend that as per the project report of the fourth respondent, it required only 12 acres of land and had identified various lands of Devarabisanahalli, not including the petitioner's land, for the purpose. But, however, the land of the petitioner also having been included in proposing to earmark a total extent of 21 acres 2 guntas to be handed over to the fourth respondent, the petitioner questions the bona fides of the competent authorities in this regard. It is in this background that the present petition is filed.

WP 30981/2004

The petitioners claim to be agriculturists and permanent residents of Kariyammana Agrahara Village, Varthur Hobli, Krishnarajapura Taluk, Bangalore District. Petitioner No. 1 and the father of petitioner No. 2 and 4 were the owners of land measuring 1 acre 10 guntas, being a portion of land bearing survey No. 30/1.

It is further stated that in the Comprehensive Development Plan, the land of the petitioners is shown as residential zone and the said land is attached to the Bhovi Hatti village, Kariyammana Agrahara and Devarabisanahalli, which is a kilometre away from the village. The said land and the surrounding area is built up and developed. It is also stated that, the land in question is a well developed garden land consisting of 35 Coconut trees, 30 Sapota trees, Mulberry, certain jungle trees, and flowering plants etc., and the petitioner has constructed a farm house, part of which is being used as his residence.

Respondent No. 7 is a private limited company having its registered office at Delhi. On 29.08.2001, the seventh respondent had submitted its proposal for establishment of a Software/IT park as a single unit complex, seeking acquisition through KIADB, of 12 acres of land in Survey Nos. 10/1, 10/2, 10/3, 11/1, 11/2, 11/3 of Devarabisanahalli Village and Survey Nos. 27, 28, 29/1, 29/2 and 30/1 of Kariammana Agrahara Village, Bangalore South Taluk, for their proposed project. Their project was approved by the third respondent - SHLCC, on 18.09.2001. Respondent No. 3 submitted its report to the State Government for further action, which in turn, forwarded the report to the second respondent - KIADB, to take action, to acquire the proposed lands. The fourth respondent - Special Land Acquisition officer, KIADB, had proposed to acquire 22 acres 21/2 guntas as against 12 acres, as required by the seventh respondent - M/s. Royal Fragrances Private Limited, and the said proposal was submitted to the first respondent.

The seventh respondent, by its letter dated 22.11.2001, requested the second respondent-KIADB to acquire lands in Survey No. 31 and 32 of Kariyammana Agrahara and Survey No. 54 of Devarabisanahalli and in lieu of the said proposal, to allot the aforesaid lands in favour of M/s. Global Tech Private Limited. Pursuant to the request, the second respondent - KIADB proposed to acquire 29 acres 71/2 guntas of land of Devarabisarnahalli and Kariyammana Agrahara as against 12 acres of land sought by the seventh respondent, and the said proposal was submitted to the first respondent. The KIADB, without obtaining prior approval from the State, had proposed to allot the said 29 acres 71/2 guntas, to the seventh respondent, directing them to deposit 40% of the tentative cost of the land - a sum of ' 84,26,250/-.

The State Government, by its communication dated 10.1.2002, directed the second respondent, to consider the request of the seventh respondent only in respect of 12 acres and to retain the remaining land for industrial purposes. Subsequently, the first respondent had issued a notification, declaring the lands measuring 29 acres 71/2 guntas of Kariyammana Agrahara and Devarabisanahalli Villages as industrial area and preliminary notification was also issued in that regard, to acquire 29 acres 71/2 guntas of land of Devarabisanahalli and Kariyammana Agrahara Village, including the land bearing Survey No. 30/1.

It is also stated that the directors of respondent No. 7, were also the directors of M/s. Vikas Telecom Limited and M/s. Supreme Build-cap Private Limited and that M/s. Vikas Telecom Limited had secured 110 acres of land situated in Devarabisanahalli and Boganahalli Village, Varthur Hobli, and M/s. Supreme Build-cap Private Limited, had secured an extent of 1 million square feet of land, situated at Devarabisanahalli from KIADB. It is stated that respondents 1 to 3 had favoured respondent No. 7 in the matter of allotment of huge extent of lands.

The KIADB, by its communication dated 5.102004 addressed to the first respondent, had stated that the seventh respondent and its group of companies were not bona fide industrialists, but they were developers of real estate and they had secured the allotment of the said land by misrepresentation and political influence. The KIADB had not taken any action in allotting the lands acquired for respondent No. 7 though tentative deposit was collected by it.

The petitioners had filed objections to the preliminary notification in respect of the above land before the fourth respondent stating that, since the said area was declared as an industrial area, the petitioners intended to establish a Software Park on the land and had formed a partnership firm called M/s. KCP Electronics and a project report was submitted to the KUM and it was recommended to the KIADB to allot land for the same.

It is further stated that without considering the objection raised by the petitioners, the respondent No. 1 and 2 had issued final notification under Section 28(4) of the KIADB Act.

WP 17211/2009

The petitioner claims to be a private limited company registered under the Companies Act 1956. The petitioner had submitted a detailed project proposal to the KUM, for the Development of an Integrated Infrastructure Project for IT Infrastructure at Devarabisanahalli and Kariyammana Agrahara Villages, Varthur Hobli, Bangalore Urban District. The proposed development included setting up of a Software Technology Park, Research and Development Centre etc. The SHLCC had considered and approved their project in the meeting held on 18.9.2001.

The Managing Director of the Karnataka Bio-Technology and Information Technology Services (Hereinafter referred to as the 'KBITS', for brevity) had issued a formal approval dated 9.10.2001 in terms of the clearance by the Single Window agency as per the request of the KUM and thereby the second respondent - KIADB was requested to take necessary action with regard to acquisition of lands for the implementation of the project of the petitioner. The petitioner had deposited a sum of ` 50,00,000/- with the second respondent - KIADB on 18.10.2001 along with copies of project report, memorandum, articles of Association Revenue Sketch etc. And in furtherance of the same, an agreement was entered into between the petitioner and the second respondent, wherein the second respondent took upon itself to make land available in Survey nos. 10/1, 10/2, 10/3, 11/1, 11/2, 11/3, of Devarabisanahalli and Survey Nos. 27, 28, 29/1, 29/2, 30/1 of Kariyammana Agrahara, Varthur Hobli, Bangalore South Taluk.

It is further contended that respondent No. 2 - KIADB initially raised a demand at the rate of ` 15,00,000/- per acre and requested the petitioner to deposit a sum of ` 32,80,000/- deducting a sum of ` 50,00,000/-, which was already deposited on 16.10.2001, out of ` 82,80,000/- towards the 40% of the tentative cost. And at that stage, it was found that the lands earmarked for the project...