M/S Ranka And Shah Developer (P) Ltd vs State Of Karnataka on 31 July, 2026

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    Karnataka High Court

    M/S Ranka And Shah Developer (P) Ltd vs State Of Karnataka on 31 July, 2026

                                                 -1-
                                                             WA No. 273 of 2023
    
    
    
                         IN THE HIGH COURT OF KARNATAKA AT BENGALURU
    
                             DATED THIS THE 31st DAY OF AUGUST, 2026
    
                                             PRESENT
                            THE HON'BLE MRS. JUSTICE ANU SIVARAMAN
                                                 AND
                            THE HON'BLE MR. JUSTICE VENKATESH NAIK T
                             WRIT APPEAL NO.273 OF 2023 (GM-KIADB)
    
                    BETWEEN:
                    M/S. RANKA AND SHAH DEVELOPER (P) LTD.
                    A COMPANY REGISTERED UNDER THE
                    COMPANIES ACT, 1956,
                    'RANKA CHAMBERS', NO.31,
                    CUNNINGHAM ROAD,
                    BENGALURU - 560 052
                    REPRESENTED BY ITS DIRECTOR
                    SRI PRADEEP B RANKA
                                                                    ...APPELLANT
                    (BY SRI. K. N. PHANINDRA, SENIOR COUNSEL FOR
                        SRI. VASANTH MADHAVA S., ADVOCATE)
    
                    AND:
    
                    1.   STATE OF KARNATAKA,
                         REPRESENTED BY ITS
                         PRINCIPAL SECRETARY
    Digitally            TO GOVERNMENT,
    signed by
    RAKSHA               DEPARTMENT OF
    Location:            COMMERCE AND INDUSTRIES,
    High Court of        VIKASA SOUDHA,
    Karnataka            BENGALURU - 560 001
    
                    2.   KARNATAKA INDUSTRIAL AREA
                         DEVELOPMENT BOARD,
                         REPRESENTED BY ITS
                         EXECUTIVE MEMBER,
                         NO.14/3A, II FLOOR,
                         NRUPATHUNGA ROAD,
                         BENGALURU - 560 002
    
                    3.   M/S. ANVISH VENTURES,
                         NO.115, 1ST FLOOR,
                         PRIZM GREYSTONE
                                    -2-
                                              WA No. 273 of 2023
    
    
    
    
         NO.70/1, MILLERS ROAD,
         BENGALURU - 560 052
         REPRESENTED BY ITS PARTNER
         SRI. VISHNUPRIYA REDDY
    
    4.
         M/S. VENUS TECHNOLOGIES,
         NO.421, ETTARYKIL CHERIYAN,
         5TH PHASE, 3RD CROSS, DOMLUR,
         BENGALURU - 560 071
         REPRESENTED BY ITS PARTNER
         SMT. GEETHA .S
    
                                                   ...RESPONDENTS
         (BY SRI. KHAMBROZ KHAN, AGA FOR R1
             SRI. B.B. PATIL, ADVOCATE FOR R2
             SRI. BASAVA PRABHU S. PATIL, SENIOR COUNSEL FOR
             SRI. AJAY J.N., ADVOCATE FOR R3
             SRI. UDAYA HOLLA, SENIOR COUNSEL FOR
             SRI. VIVEK HOLLA AND
             SRI. CHANDRASHEKAR S., ADVOCATES FOR R4)
    
                                  ***
    
          THIS WRIT APPEAL FILED UNDER        SECTION   4 OF   THE
    KARNATAKA HIGH COURT ACT PRAYING TO SET ASIDE THE ORDER
    OF THE LEARNED SINGLE JUDGE DATED 16-2-2023 IN WRIT
    PETITION NO.18519 OF 2022, BY ALLOWING THE WRIT PETITION.
    
          THIS WRIT APPEAL HAVING BEEN HEARD AND RESERVED ON
    30-6-2026,    COMING   ON   FOR   PRONOUNCEMENT,    THIS   DAY,
    VENKATESH NAIK T. J., PRONOUNCED THE FOLLOWING:
    
    
    CORAM:       HON'BLE MRS. JUSTICE ANU SIVARAMAN
                 and
                 HON'BLE MR. JUSTICE VENKATESH NAIK T
                                  -3-
                                              WA No. 273 of 2023
    
    
    
    
                          CAV JUDGMENT
    

    (PER: HON’BLE MR. JUSTICE VENKATESH NAIK T)

    The present intra-Court appeal is filed by the writ

    SPONSORED

    petitioner impugning the order dated 16.02.2023 passed

    by the learned Single Judge in W.P.No.18519/2022 (the

    subject writ petition), whereunder the writ petition filed by

    the petitioner was disposed of. The operative portion of

    the order is as under:-

    i) Writ Petition stands disposed.

    ii) The challenge to the impugned order dated
    31-12-2013 stands rejected.

    iii) The petitioner is held entitled to payment of
    compensation for its lands that have been
    acquired, along with interest and all other
    benefits, in accordance with law.

    iv) The compensation shall be paid to the
    petitioner within four weeks from the date of
    receipt of the copy of this order, if not earlier.

    -4-
    WA No. 273 of 2023

    In the said writ petition, the writ petitioner sought

    the following reliefs:-

    a. To issue writ of certiorari or any other order,
    writ or directions directing respondent
    No.2/KIADB to allot the proposed land to the
    petitioner which is identified by the respondent
    No.2/KIADB in Annexure-K dated 31-12-2013,
    being the immovable property bearing plot No.1
    measuring 20 acres and plot No.2 measuring
    11.50 acres formed by respondent KIADB in
    Bengaluru IT Zone, Devanahalli, Bengaluru in
    compliance with the order of this Hon’ble Court in
    WP No.16367/2007 (LA-KIADB) dated
    06.08.2010.

    b. By passing such other orders as the Hon’ble
    Court deems fit in the facts and circumstances of
    the case, in the interest of justice.

    Since the learned Single Judge disposed of the writ

    petition and declined to quash the order dated 31.12.2013

    passed by the respondent KIADB and directed the

    respondent to pay compensation alongwith interest and all

    other benefits for the lands of the petitioner that are

    acquired, the appellant/petitioner has preferred this

    appeal.

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    WA No. 273 of 2023

    For the sake of convenience, the parties are referred

    as per their rankings before the learned Single Judge. The

    appellant is the petitioner and the respondents are

    respondents before the learned Single Judge.

    2. The relevant facts, in a nutshell, are as follows:

    The appellant is a company incorporated under the

    Companies Act, 1956. The appellant is engaged in the

    business of real estate development and related activities.

    In the course of its business, the appellant acquired

    various converted lands measuring 33 acres 31 guntas

    situated in Hunchur/Unsur village, Jala Hobli, Bangalore

    North/Yelahanka Taluk. The appellant having acquired said

    property were in exclusive possession and enjoyment as

    an absolute owner.

    The lands owned by the appellant were notified for

    acquisition by issuing preliminary notification

    No.CI/3/SPQ/2007 dated 09.01.2007 and Final notification

    No.CI/266/SPQ/2007 dated 15.05.2007 by the Karnataka

    Industrial Area Development Board (KIADB/respondent
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    WA No. 273 of 2023

    No.2) under Section 28(1) and under Section 28(4) of

    KIAD Act respectively, wherein all 33 acres 31 guntas was

    notified for acquisition.

    The Government of Karnataka in a proceeding of

    17th High Level Clearance Committee dated 28.01.2009

    considered the allotting of land in lieu of lands acquired

    and vide Government order No.ITD 31 MDA 2009(5)

    Bangalore dated 07.12.2009, the Government accorded

    approval to the appellant to establish IT/ITES SEZ at

    KIADB Layout for IT Sector at Devanahalli. On

    22.11.2010, the appellant submitted representation to

    respondent No.2-KIADB, seeking allotment of 33 acres 31

    guntas of land in lieu of land in the proposed KIADB

    IT/ITES Park.

    3. On 24.07.2010, in furtherance of the resolution

    passed by the State High Level Clearance Committee, the

    KIADB issued a letter to the appellant stating that the

    Board of the KIADB had approved the layout plan of the

    industrial area and the development works in the industrial
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    WA No. 273 of 2023

    area are under progress and that the allotment letter

    indicating the plot numbers and the terms and conditions

    of allotment, including the development charges payable

    by the appellant, would be intimated in due course. On

    06.08.2010, W.P.No.16367/2007 filed by the appellant

    before the learned Single Judge, challenging the aforesaid

    acquisition notifications, came to be disposed of by this

    Court on the basis of the memo dated 28.07.2010,

    enclosing the aforesaid letter of the KIADB dated

    24.07.2010. In the light of the letter dated 24.07.2010

    issued by the KIADB, this Court held that nothing survived

    for consideration in the writ petition. Accordingly, the writ

    petition was disposed of.

    4. Thereafter, on 22.11.2010, the appellant wrote a

    letter to the Chief Executive Officer & EM, KIADB,

    Bangalore seeking to allot 33 acres 31 guntas of land in IT

    Sector, Devanahalli, Bangalore for speedy implementation

    of its project. Thereafter, the KIADB vide letters dated

    07.04.2011 and 16.05.2011(Annexures-E and F) issued

    notices to the appellant stating that the applications filed
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    WA No. 273 of 2023

    by the appellant seeking allotment of alternate lands in

    lieu of lands in Sy.Nos.4/1, 6/2, 6/6, 4/2, 7/5A, 7/7B and

    8/2 wherein the documents produced in respect of the

    aforesaid survey numbers are only Xerox copies and

    requested the appellant to produce the original

    documents. Hence, the appellant vide letter dated

    06.04.2011 vide Annexure-G, produced all the original title

    deeds in respect of Sy.Nos.4/4, 6/7, 6/3, 6/5, 4/1, 4/5,

    6/2, 7/8, 7/3, 7/5B, 7/1, 7/7A, 113, 7/4A, 115, 7/2, 7/6,

    4/6, 6/1, 4/7, 7/4B, 7/5A, 7/7B, 6/6, 4/2, 8/2P1 and 116

    and sought for allotment letters. The appellant also

    handed over the possession of the lands to an extent of 33

    acres 31 guntas to KIADB under a mahazar vide

    Annexure-H to that effect. The Special Land Acquisition

    Officer vide letter dated 05.09.2012 (vide Annexure-J)

    confirmed having acquired and notified in final notification

    of the lands of the appellant to an extent of 29 acres

    1 gunta in Sy.Nos.4/1, 4/2, 6/2, 4/4, 4/5, 4/7, 6/1, 6/7,

    6/3, 6/5, 7/4B, 7/5B, 7/7A, 7/1, 7/6, 7/8, 7/3, 113, 7/4A,

    115, 4/6 and 7/2, wherein the sale deeds and EC stood in
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    WA No. 273 of 2023

    the name of the appellant company and in the notification,

    the name of khatedars were mentioned, however, khata

    was not transferred/mutated. It was further stated in the

    said letter that vide letter dated 08.06.2011, the appellant

    company had handed over possession of the lands to the

    Board and as per the list, the compensation to the extent

    of land measuring 29 acres 01 guntas has not been

    received by them and the land in Sy.Nos.7/5A, 7/7B, 6/6

    and 4/2 to an extent of 4 acres 30 guntas, the

    compensation was paid to the original land owners.

    5. Further, on repeated representation of the

    appellant, the KIADB/respondent No.2 issued a letter

    dated 31.12.2013 (Vide annexure-k) stating that as per

    the decision of the 17th SHLCC meeting held on

    28.01.2009, the Government vide its order No.ITD 31

    MDA 2009(5), Bangalore dated 07.12.2009, has accorded

    approval to establish an IT/ITES SEZ at IT Sector,

    Devanahalli and has cleared allotment of 33 acres

    31 guntas of land by KIADB in lieu of the land to be

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    WA No. 273 of 2023

    surrendered by the appellant to KIADB subject to payment

    of development charges as applicable.

    6. Further, respondent No.2 vide its letter dated

    31.12.2013, demanded Rs.50.00 lakhs per acre as

    development charges and Rs.1,24,00,000/- towards 20%

    initial deposit for 2.5 acres and in all, respondent No.2

    demanded the appellant to pay a sum of

    Rs.15,75,75,000/- and on payment, it would consider for

    allotment in favour of the appellant in respect of plot No.1

    and plot No.2P of IT Park in compact block of 31.5 acres.

    7. We have heard Sri K.N. Phanindra, learned

    Senior Counsel appearing for the appellant, Sri B.B. Patil,

    learned counsel appearing for respondent No.2-KIADB,

    Sri Basava Prabhu S. Patil, learned Senior Counsel

    appearing for respondent No.3, Sri Uday Holla, learned

    Senior Counsel for Sri. Vivek Holla and

    Sri. Chandrashekar S., learned counsels appearing for

    respondent No.4, and perused the material available on

    record.

    – 11 –

    WA No. 273 of 2023

    8. Sri K.N. Phanindra, learned Senior Counsel

    appearing for Sri Vasanth Madhava for the appellant,

    vehemently contended that the lands of the appellant were

    acquired by KIADB and pursuant to various schemes and

    Government orders, the KIADB agreed to allot lands by

    filing a memo in a writ petition pending challenging the

    acquisition and inspite of the order of this Court, the

    KIADB did not issue allotment letter and by the letter

    issued on 31.12.2013, it is demanding developmental

    charges to consider allotting the lands, which was totally

    contrary to undertaking given before this Court. The

    development charges demanded was contrary to the

    directions of the earlier writ petition and was also not all

    reasonable, since the KIADB demanded development

    charges which was prevailing in the year 2013, though the

    lands had been agreed to be allotted in favour of the

    appellant in 2010 and the development charges demanded

    were almost equivalent to the land acquisition offered,

    without there being no complete development of the

    proposed lands as agreed upon.

    – 12 –

    WA No. 273 of 2023

    9. It is contended that the KIADB, in the most

    illegal manner, paid compensation to the erstwhile owners

    on the basis of duplicate/fabricated documents, despite

    the original documents having been submitted by the

    appellant and the KIADB without notice to the appellant

    has granted compensation. The said act and action of

    KIADB was wholly illegal and contrary to the provisions of

    the KIAD Act and principles of natural justice.

    10. It is further contended that the appellant had

    surrendered its land in terms of the conditions and the

    order of this Court. On the other hand, the KIADB was

    acting in the most illegal manner and the proposed lands

    were allotted to respondent Nos.3 and 4 with malafide

    intentions and for making illegal gains. In that eventuality,

    the appellant would be put to irreparable loss, hardship

    and injury. Therefore, the appellant filed the writ petition

    however, the writ petition came to be disposed of with a

    direction to pay compensation to the appellant, though

    such a relief was never sought in the writ petition. The

    learned Single Judge did not consider the contentions

    – 13 –

    WA No. 273 of 2023

    raised by the appellant regarding the KIADB not acting in

    terms of the earlier directions of this Court and demanding

    development charges without any legal basis and without

    clarifying whether the development charges included the

    cost of the land or otherwise.

    11. It is further contended that the KIADB has not

    cancelled the allotment, since it was the Government

    which had granted the allotment and it was only the

    Government that could have cancelled the same.

    Further, despite the decisions of the Hon’ble Apex Court

    and the Co-ordinate Bench being relied upon, the writ

    petition came to be disposed off, declining specific relief as

    sought for. The disposal of the writ petition is wholly

    erroneous, not based on the facts and circumstances of

    the case, and contrary to the documents available on

    record. The learned Single Judge also failed to consider

    the statement of objections, and the issue relating to the

    allotment of developed land in lieu of the acquired land,

    the said contention was also not considered. Hence, the

    – 14 –

    WA No. 273 of 2023

    learned Senior Counsel for the appellant prays to allow the

    appeal.

    12. Per contra, Sri B. B. Patil, learned counsel for

    respondent No.2-KIADB, submits that the learned Single

    Judge was justified in dismissing the writ petition, having

    regard to the admitted position that the appellant had

    failed to deposit the amount demanded by respondent

    No.2. It is contended that nearly 10 years have elapsed

    from the date of the allotment, however, the appellant has

    not shown any inclination to deposit development charges

    as directed by the KIADB. On 03.03.2022, the appellant

    requested the KIADB for allotment letter with terms

    alongwith payable development charges and also

    requested for developing access road from IT Park to

    reach Plot No.1 and 2P. On the other hand, on

    06.05.2022, the KIADB sent a letter to the Member

    Secretary, SLWCC stating that, in view of non-payment of

    development charges, the matter requires to be placed

    before SLWCC. Despite the appellant being aware of these

    communications and non payment of development charges

    – 15 –

    WA No. 273 of 2023

    leads to cancellation of approval for the proposed

    allotment, the appellant has not paid the development

    charges. Consequent to the communication of KIADB, the

    matter was placed before SLWCC and a decision was taken

    to cancel the approval for the proposed allotment of Plot

    No.1 in favour of the appellant on 03.09.2022 vide

    Annexure-R4.

    13. It is further contended that respondent Nos.3

    and 4 made applications to the KIADB for allotment of

    lands, accordingly, respondent No.2 allotted 10 acres of

    land each in favour of respondent Nos.3 and 4 out of the

    land in question. Thus, the learned Single Judge rightly

    dismissed the writ petition, and the said order does not

    warrant interference by this Court in the present appeal.

    14. Sri. Basava Prabhu S. Patil, learned counsel

    appearing for respondent No.3 vehemently contended that

    since the appellant failed to pay the requisite development

    charges from the year 2013 and has not taken any steps

    for development of plot and all contentions taken by the

    – 16 –

    WA No. 273 of 2023

    appellant in other writ petitions have not been complied

    with and thus, the writ petition filed by the appellant came

    to be dismissed on 16.02.2023.

    15. It is further contended that, in the meanwhile,

    i.e. on 23.02.2023, respondent No.3 filed application

    seeking allotment of land to the KIADB. Thus, the SHLCC

    granted/allotted 10 acres specifically in plot No.1 on

    18.03.2023 vide Annexure-R3A and accordingly,

    respondent No.3 made payment of 10% of land cost being

    Rs.2.8 crores. Thus, on 23.03.2023, KIADB issued

    allotment letter allotting plot No.1 to respondent No.3 vide

    Annexure-R3B. On 14.09.2023, respondent No.3 paid

    Rs.25.83 crores to respondent No.2 KIADB. Hence, on

    05.02.2024, confirmation letter of allotment was issued to

    respondent No.3 by KIADB on 06.02.2024. Possession

    certificate has been issued in the name of respondent No.3

    and on 08.02.2024, KIADB executed lease-cum-sale

    agreement in favour of respondent No.3 on payment of

    total consideration amount of Rs.28,70,08,995/- and

    – 17 –

    WA No. 273 of 2023

    KIADB has acted well within its statutory powers in having

    cancelled the proposed allotment made to the appellant.

    16. The KIADB has no power to make allotment to

    the appellant, as the same runs contrary to Regulation 10

    of KIADB Regulations, 1969, which states that KIADB may

    make allotment in favour of the person who is likely to

    start production within a reasonable period. Further,

    Regulation 10(d) of KIADB Regulations, 1969, states that

    failure to execute the agreement or successfully pay sums

    demanded by the Executive Board would render the

    allottee to have declined allotment. Respondent No.3, on

    the other hand, has taken all necessary steps including

    payment of charges of relevant NOC and letter obtained

    except that the construction activities cannot start on

    account of interim orders passed by this Court. Further, in

    compliance with the directions of the learned Single Judge,

    KIADB has already passed general award and deposited

    compensation of Rs.4,22,32,000/- in the Civil Court, in

    order to pay compensation to the land losers.

    – 18 –

    WA No. 273 of 2023

    17. It is further contended that respondent No.3 was

    allotted the land in question after dismissal of the writ

    petition on 16.02.2023 and 18.03.2023. Hence, there is no

    merit in the appeal of the appellant. Hence, prayed for

    dismissal of the same.

    18. Sri. Uday Holla, learned Senior Counsel

    appearing for respondent No.4, vehemently contended

    that since the appellant declined to comply the order of

    the Court and failed to deposit amount, as directed by

    respondent No.2 KIADB, the KIADB did not execute the

    lease-cum-sale agreement in favour of the appellant. The

    writ petition filed by the appellant was dismissed by

    learned Single Judge in W.P.No.16367/2007. In the

    meanwhile, on 18.03.2023, respondent No.4 M/s. Venus

    Technologies, the impleading applicant now arrayed as

    respondent No.4 approached the State Government for

    allotment of land through KIADB for setting up integrated

    IT/ITES park and residential-retailed mixed use project

    with an investment of Rs.249.70 crores, generating

    employment of about 700 persons. Hence, on 23.03.2023,

    – 19 –

    WA No. 273 of 2023

    KIADB allotted 10 acre of land in plot No.1P in phase I of

    IT defence Aerospace Park, IT Sector, Industrial Area,

    Bengaluru. The impleading applicant respondent No.4 was

    directed to pay a premium of Rs.280 lakhs per acre plus

    5% extra cost for plot facing 45feet road width or more.

    Now respondent No.4 has paid the amount of advance of

    Rs.2,80,50,000/- on the date of allotment and an amount

    of Rs.13.00 crores was paid on 19.11.2025 as directed by

    the KIADB. Therefore, respondent No.4 has complied the

    directions of KIADB and accordingly, allotted the land in

    question. The conduct of the appellant is such that it has

    not paid a single rupee since 2009 and he is seeking

    allotment of land contrary to the orders passed by this

    Court. Thus, the appeal is without any merit and is liable

    to be dismissed with exemplary cost.

    19. In view of the submissions made by the learned

    Senior counsel for the appellant, learned Addl.

    Government Advocate for respondent No.1-State, learned

    counsel for respondent No.2-KIADB, learned Senior

    – 20 –

    WA No. 273 of 2023

    counsels for respondent Nos.3 and 4, the following point

    that would arise for our consideration is as under:-

    Whether the judgment passed by the

    learned Single Judge requires interference at the

    hands of this Court?

    20. The essential factual matrix is undisputed,

    inasmuch as, the appellant company and its promoter had

    purchased the extent of about 33 acres 21 guntas in

    various survey numbers in Hunchur/Unsur village, Jala

    Hobli, Bangalore North Taluk, Yelahanka. The said lands

    had been converted into non-agricultural and residential

    purpose. The appellant had intended to establish IT/ITES

    SEZ over the lands. In the mean-while, i.e., on

    09.01.2007, a preliminary notification was issued under

    Section 28(1) of KIAD Act proposing to acquire the land of

    the appellant and on 15.05.2007, final notification came to

    be issued under Section 28(4) of KIAD Act acquiring land

    of the appellant.

    – 21 –

    WA No. 273 of 2023

    21. Being aggrieved by the preliminary and final

    notifications, the appellant challenged both the

    notifications in Writ Petition No.16367 of 2007

    (LA-KIADB). However, the Government passed the order

    resolving to allot 33 acres and 31 guntas to the appellant

    in IT Park in lieu of lands surrendered by it, subject to

    payment of development charges vide its Letter dated

    07.12.2009 as per Annexure-B.

    The contents of Annexure-B are as under:

    “PROCEEDINGS OF THE GOVERNMENT OF
    KARNATAKA
    Sub: Approval of the project proposal of, M/S
    RANKA AND SHAH DEVELOPERS PVT. LTD.
    TO ESTABLISH “SEZ FOR IT/ITES” AT
    HUNCHUR VILLAGE, JALA HOBLI, BANGALORE
    URBAN DISTRICT.

    READ Proceedings of 17TH State High Level
    Clearance Committee (SHLCC) Meeting held on
    28.1.2009.

    PREAMBLE
    M/s Ranka and Shah Developers Pvt. Ltd., is a
    Private Limited Company incorporated under
    Indian Companies Act, 1956, registered with
    Registrar of Companies, Bangalore on 4th April
    1996.

    The RANKA group is a Bangalore based
    conglomerate with interests in real estate

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    WA No. 273 of 2023

    development, infrastructure projects, power
    generation, retailing contracting and engineering
    & consultancy, interior housing finance, InfoTech
    solutions, education, Healthcare, hospitality,
    leisure and entertainment, jewellery, textiles and
    silks- drawing synergy from the diversity.

    RANKA group is one of the renowned
    groups in the field of property development since
    the 70’s. The company has developed over 30
    projects in Bangalore and has over clientele over
    2500 satisfied Ranka Home Owners, of which
    over 1000 are NRIs.

    In the proposal submitted for the 17TH
    SHLCC, the Company had requested to approve
    the project for establishment of “SEZ for
    IT/ITES” in 33 acres 31 guntas of own land and
    for allotment of said land through KIADB after
    payment of required development charges. The
    project proposes to provide employment to
    about 7000 persons and proposed to invest
    Rs.430.00 crores.

    The Company informed the committee that
    out of 33 acres 31 guntas, the land measuring
    26 acres 01 guntas is registered in the name of
    the company and also converted into residential
    purpose from agricultural during 2005. The
    remaining 7 acres 30 guntas has been registered
    in the name of Mr. Pradeep Ranka, one of the
    promoters Director of the company.

    It has been informed to the committee that
    a Court case is pending in the Hon’ble High Court
    on the said property. The promoters have
    approached the Court against the acquisition by
    KIADB and STATUS-QUO granted by the Hon’ble
    High Court against the acquisition. BIAPPA have
    informed that the proposed lands are in Special
    Agriculture Zone as per Interim Master Plan of

    – 23 –

    WA No. 273 of 2023

    BIAPPA and hence the proposed activity is not
    permitted.

    KIADB in their letter dated 26.3.2008 has
    informed that the extent of one acre 34 guntas
    in Sy. No.116 of Hunchur village is not under
    KIADB acquisition process and remaining extent
    of land is under acquisition and the Hon’ble High
    Court has given a stay and ordered for STATUS-
    QUO.

    The Company in their letter 30.10.2008
    has submitted before the Committee the
    following points and requested the committee to
    approve the proposal.

    1. The Company will consider withdrawing their
    writ petition before the Honorable High Court of
    Karnataka, in case the Government agrees to
    approve the application for SEZ in the said land
    by payment of development fees to KIADB.

    2. Requested to approve the project proposal
    subject to obtaining of environmental clearance
    so that to enable the Company to approach the
    Government of India for obtaining approval of
    SEZ (as it takes nearly 3 to 6 months).

    3. The above said proposed land has been
    already converted for residential purposes and
    has obtained clearance from pollution control
    board for setting up of SEZ for IT/ITES.
    Maps of the lands involved in this project as well
    as KIADB Aerospace layout were perused by the
    Committee. The Committee observed that the
    project proponent may be given an extent of 33
    acres 31 guntas of land in the KIADB layout for
    IT sector at Devanahalli. The project proponent
    should pay development charges for this land.
    The committee has indicated that it is difficult to
    allot the same land as requested by the project

    – 24 –

    WA No. 273 of 2023

    proponent within the layout because the layout
    is already designed. The project proponent
    agreed for the same. The Committee noted that
    land acquired by KIADB will be for industrial use.
    Hence, the issue of present zoning will not be
    relevant.

    The Committee observed that water can be
    supplied to the project only after 2012. The
    project proponents informed that
    implementation of the project would take about
    3 years and hence it is acceptable if water is
    made available after 2012.

    The Committee also noted that the project
    proponent will withdraw the Writ Petition filed
    against the acquisition.

    Considering the above points the committee
    after detailed discussions, approved the proposal
    to establish “IT/ITES SEZ” and recommended to
    grant infrastructure facilities and extend
    incentives and concessions.

    Hence the following order:

    GOVERNMENT ORDER NO ITD 31 MDA
    2009[5], BANGALORE DATED: 07-12-2009
    In the circumstances explained in the Preamble,
    Government are pleased to accord approval to
    M/s Ranka and Shah Developers Pvt. Ltd.,
    establish “IT/ITES SEZ”, at KIADB layout for IT
    Sector at Devenahalli with an investment of Rs
    130 crores and extended the following
    infrastructure facilities, incentives and
    concessions.

    INFRASTRUCTURE FACILITIES:

    LAND: The Committee resolved to permit the
    company to establish the unit in 33 acres 31

    – 25 –

    WA No. 273 of 2023

    guntas of land to be allotted by KIADB in the
    layout for IT sector at Devanahalli in lieu of the
    land he will surrender to KIADB. The project
    proponent shall pay development charges to
    KIADB for the same.

    POWER: 10 MW to be serviced by BESCOM.
    WATER: 3,50,000 lpd of water to be supplied by
    KIADB/BWSSB by 2012.

    INCENTIVES & CONCESSIONS:

    As per Millennium IT Policy
    Environment: The promoters to obtain CFE and
    CFO from KSPCB and Environmental Clearance
    from State. No works shall commence prior to
    obtaining EC, as per prevailing law.
    Employment: The Company shall prepare a
    plan for development of human resource
    required for the project, train local people and
    provide employment to these trained local youth
    and comply with Government policy of
    employment to local people. A copy of human
    resource development plan shall be sent to the
    Director, Dept of IT & BT for monitoring.
    Others: The promoter shall take all statutory
    and other necessary Clearances including GOI
    and shall submit milestones/progress in
    Implementation of the project regularly, which
    will be monitored by the Departments
    concerned.

    By Order and in the name of the
    Governor of Karnataka
    Sd/-

    [M.V. Krishnamurthy]

    Under Secretary to Government
    Department of Information

    – 26 –

    WA No. 273 of 2023

    Technology, Bio Technology and
    Science & Technology.”

    22. On 24.07.2010, the KIADB by its letter informed

    the appellant that as per the meeting held by SHLCC dated

    28.01.2009, it has approved the project of the appellant

    and recommended the KIADB to allot 33 acres and 31

    guntas of land in IT Park Industrial Area, near Devanahalli,

    in lieu of the land which will be surrendered by the

    appellant to the KIADB, which will be free from all kind of

    encumbrances. In the said letter, the KIADB stated that

    the appellant should not claim any compensation for the

    lands to be surrendered and also subject to withdrawing

    Writ Petition No.16367/2007. In the said letter, the KIADB

    also stated that the terms and conditions of the allotment

    including the development charges payable by the

    appellant will be issued in due course.

    23. In turn, the appellant submitted a letter dated

    22.11.2010 (Annexure-B) to the KIADB informing about

    the disposal of Writ Petition No.16367/2007 and also

    – 27 –

    WA No. 273 of 2023

    requested the KIADB to allot 33 acres and 31 guntas of

    land in IT sector of Devanahalli.

    24. Later, as per the proceedings of KIADB dated

    29.03.2010, in 299th Board Meeting in Subject No.14,

    whereby the Board of KIADB discussed the issue regarding

    development charges in respect of IT/BT Park industrial

    area. As per Annexure-R1, the development charges was

    arrived at Rs.21,328 lakhs for 1179.55 acres. Therefore,

    the appellant has contended that the development charges

    would be Rs.21,328 lakhs divided by 1179.55 acres equals

    to Rs.18 lakhs per acre. Therefore, the development

    charges as in the year 2010 was only Rs.18 lakh per acre.

    Further, the cost of underground and drainage usually was

    decided to be levied on the land cost. Since the appellant

    was the land owner and was seeking allotment of 33 acres

    of its own land in lieu of compensation, the land cost

    would not affect. On 24.07.2010, the KIADB issued letter

    to the appellant indicating decision to allot 33 acres and

    31 guntas in lieu of lands of the appellant that was

    acquired, however, subject to withdrawal of Writ Petition

    – 28 –

    WA No. 273 of 2023

    No.16367 of 2007 filed by the appellant. Therefore, on

    06.08.2010, the aforesaid petition was disposed of on the

    basis of the memo dated 28.07.2010. Thereafter, the

    original title deeds were handed over by the appellant to

    the KIADB with a request to issue the allotment letter vide

    Annexure-G dated 04.06.2011 and the possession of the

    lands were handed over by the appellant to the KIADB

    vide Annexure-H.

    25. On 31.12.2013, the KIADB issued a letter,

    whereby the KIADB allotted 31.5 acres to the appellant.

    Further, the KIADB sought development charges of

    Rs.50 lakh per acre in respect of 29.02 acres and land

    costs of Rs.2.5 crore per acre in respect of 2.49 acres. It is

    contended that the calculation of Rs.50 lakh per acre

    towards development charges is totally contrary to the

    decision dated 29.03.2010 of the KIADB, which reveals

    that development charges in total was Rs.18 lakh per acre

    only. Therefore, after 3 years i.e. on 27.07.2016, the

    appellant made representation to the KIADB contending

    that development charges should be as per rates in 2010

    – 29 –

    WA No. 273 of 2023

    and also to make changes for the purpose of development

    vide Annexure-L. Once again on 03.01.2017, the appellant

    reiterating its request and also specifically informing that

    though it had not surrendered the possession and

    documents of title, the erstwhile land owner of Survey

    No.115 measuring 1 acre and 29 guntas had approached

    the KIADB for compensation and the KIADB had paid the

    compensation amount without verifying the records. Thus,

    the appellant intimated that the KIADB was paying

    compensation to erstwhile owners to an extent of 4 acre

    and 30 guntas in Survey No.113 and therefore, requesting

    not to pay the compensation amount to the erstwhile

    landowners vide Annexure-N dated 28.06.2017. The

    appellant once again submitted representation

    dated 27.02.2018 to the KIADB and requested it that

    though it had surrendered the land without receiving

    compensation in the year 2011, it had not received any

    allotment letter from the KIADB. Thus, it requested the

    KIADB to issue the allotment letter and that the appellant

    would pay the full payment without charging any interest

    – 30 –

    WA No. 273 of 2023

    on development charges. Once again on 05.07.2018, the

    appellant submitted its representation to the KIADB

    reiterating its request and also mentioning about

    compensation being dispersed to erstwhile landowners to

    an extent of 1.29 acres. The appellant also requested for

    issuance of allotment letter and to give 180 days time to

    make payment without interest. After four years, the

    appellant submitted another representation dated

    03.03.2022 to the KIADB reiterating its request for

    issuance of allotment letter without insisting for

    development charges Vide Annexure-R.

    26. Later, on 11.07.2022, the Karnataka Udyog Mitra

    addressed a letter to the KIADB stating about the

    background facts and directing KIADB to decide the

    representation of the appellant in accordance with Rules.

    Thus, the appellant filed one more Writ Petition in Writ

    Petition No.18519 of 2022 challenging the order dated

    31.12.2013 vide Annexure-K.

    27. The perusal of the material available on record, it

    clearly demonstrates that the appellant surrendered its

    – 31 –

    WA No. 273 of 2023

    land to the State, which in turn had passed orders under

    Section 28(8) of the KIAD Act, 1966. After surrendering

    the land to the respondent KIADB, the appellant made a

    representation to allot 30 acres of land in Plot No.1 of IT

    Sector and issue demand letter for payment of

    development charges. Accordingly, the KIADB allotted the

    land and insisted for developmental charges in terms of

    Section 14 of the KIAD Act. The entire tentative cost of

    acquisition and the development of an industrial layout are

    taken while determining the tentative cost of allotment to

    the project proponent. Pursuant to the completion of the

    enhancement proceedings as regards acquisition cost,

    after completion of full development works, in the said

    industrial area, the final cost of allotment can be

    ascertained and the difference in final price and allotted

    price shall be collected from the project proponent by

    giving considerable time. Therefore, the allotment cost and

    development charges as intimated to the appellant is not

    based on any whims and fancies of the respondent KIADB

    and it appears to be based on scientific and time tested

    – 32 –

    WA No. 273 of 2023

    method and in terms of board resolution dated

    29.03.2010.

    28. The contention of the appellant that the

    development charges is highly excessive and not as was

    contemplated during 2010, when the lands of the

    appellant were acquired, is totally incorrect, as the

    development charges levied at the rate of Rs.50.00 lakhs

    per acre has been arrived during 2010 itself, which is

    evident as per the board resolution dated 29.03.2010. The

    appellant had accepted at point of time that they will pay

    the development charges and denying the rate at which

    the said development charges is levied are lame excuses

    made out by the appellant. All the costs as collected are

    tentative in nature and the same shall be finally

    determined at the time of execution of sale deed after

    completion/implementation of the proposed project. The

    record further demonstrates that the appellant

    surrendered its land by letter dated 05.09.2012 issued by

    Special Land Acquisition Officer, KIADB and thereafter the

    KIADB demanded development charges as well as cost of

    – 33 –

    WA No. 273 of 2023

    the land of 2.49 acres. However, till date, the appellant did

    not deposit the said amount. On the other hand, it has

    interpreted that the development charges is excessive.

    29. On the other hand, the KIADB contended that the

    project of the appellant had been cancelled in the State

    Level Single Window Clearance Committee Meeting held

    on 03.09.2022 and the KIADB had resolved to pay

    compensation. Under the Karnataka Industrial Area

    Development Act (KIAD Act), the land losers are generally

    liable to pay development charges and the proportionate

    cost of the developed land when seeking alternative or

    pre-allotment. Once the land is acquired and possession is

    surrendered, it vests absolutely with the State

    Government/KIADB free from all encumbrances. The

    erstwhile landowner loses original title rights and becomes

    entitled only to statutory compensation. The land losers do

    not have an inherent, automatic right to receive

    alternative developed land at concessional rate, unless

    there is an express, government approved land loser

    sharing policy, such as, the 99-year lease or allotment

    – 34 –

    WA No. 273 of 2023

    schemes. When KIADB allots certain lands to land losers

    under a designated scheme or concession, the allottee is

    obliged to pay the development charges, maintenance

    charges and the Board’s prescribed premium.

    30. Section 14 of the Act contemplates general

    powers of the Board. As per the this section, failure to pay

    the betterment charges within stipulated time constitute

    breach of allotment conditions under Section 14(1) (f) (ii)

    of the Act, which reads as under:-

    14(1) (f) (ii). ‘To modify or rescind such
    allotments, including the rights and power to
    evict the allottees concerned on breach of any of
    the terms or conditions of their allotment’.

    31. Under KIAD Act, payment of development

    charges are mandatory. The Hon’ble Supreme Court in

    catena of decisions ruled that once the land is acquired

    and declared as an industrial area, it falls under the

    exclusive purview of the KIADB. A Co-ordinate Bench in

    catena of decisions has held that an allottee cannot seek

    an exemption from development charges, just because

    they have not utilised specific amenities such as park or

    – 35 –

    WA No. 273 of 2023

    internal roads in the industrial area. In Bangalore

    International Airport Area Planning Authority v.

    Birla Super Bulk Terminal & Others, reported in

    (2019) 12 SCC 572, the Hon’ble Apex Court affirmed

    that special enactments like the KIAD Act prevail over

    general planning laws (like Karnataka Town and Country

    Planning Act) regarding development in allotted areas. In

    Karnataka Industrial Areas Development Board &

    Anr. v. M/s. Prakash Dal Mill & others reported in

    (2011) 6 SCC 714, the Hon’ble Apex Court ruled that

    while the Board has the authority to collect the

    development charges, it cannot arbitrarily or unreasonably

    hike the final price of the demised premises. The purpose

    of the KIAD Act, as seen from the preamble of the Act, is

    to make special provisions for securing the establishment

    or industrial areas in the State and generally to promote

    the establishment and orderly development of the

    industries therein, and for that purpose to establish

    industrial areas development board. The preamble of the

    KIAD Act reads as under:

    – 36 –

    WA No. 273 of 2023

    An Act to make special provision for securing the
    establishment of industrial areas in the State of
    Karnataka and generally to promote the establishment
    and orderly development of industries therein, and for
    that purpose to establish an Industrial Areas
    Development Board and for purposes connected with
    the matters aforesaid.

    Whereas it is expedient to make a special provision for
    securing the establishment of industrial areas in the
    State of Karnataka and generally to promote the
    establishment and the orderly development of
    industries in such industrial areas, and for that
    purpose to establish an industrial areas development
    board and for purposes connected with the matters
    aforesaid.”

    32. As per Section 27 of the KIAD Act, the provisions

    of the Act shall apply to such areas from such dates as

    have been notified by the State Government under Sub-

    Section (3) of Section 1. Section 47 is the non-obstante

    clause of KIAD Act which reads as under:

    “47. Effect of provisions inconsistent with other
    laws.- The provisions of this Act shall have effect
    notwithstanding anything inconsistent therewith
    contained in any other law.”

    33. By careful reading of the provisions of both the

    provisions of the KIAD Act, it is seen that the object of

    KIAD Act is to make special provisions for securing the

    establishment of industrial areas in the State and to

    – 37 –

    WA No. 273 of 2023

    generally promote the establishment and orderly

    development of the industries.

    34. In the present case, by way of letter dated

    31.12.2013, the terms and conditions of allotment were

    informed. This had two portions, firstly, 29.02 acres to be

    allotted after payment of development charges and

    2.49 acres to be allotted at the prevailing rate. If it is the

    contention of the appellant that development charges are

    not to be paid, then the appellant could have paid the

    money towards allotment of 2.49 acres. Since it was a

    composite allotment, the entire allotment stands

    cancelled. The development charges were payable in 2013

    in respect of one portion of land and the allotment of land

    required payment of charges. Since it was a composite

    allotment, the non-payment has rendered the allotment

    null and void. The same principles would apply as far as to

    any other allottee. The appellant does not get a better

    right as a consequence of the orders of this Court, as all

    the orders were restricted to only a portion of the land.

    – 38 –

    WA No. 273 of 2023

    35. The records further reveal that the appellant was

    originally proposed to be allotted the subject lands in lieu

    of compensation payable as against acquisition of their

    properties in Hunchur Village for which a demand note was

    given. However, there are several disputes with respect to

    ownership and title of the lands that the allotment of the

    appellant is claiming title over in Hunchur Village. In

    respect of certain properties, compensation has been

    dispersed to the landowners, which is admitted by the

    appellant in its letter dated 03.01.2017. Insofar as Survey

    No.115 of Hunchur Village measuring 1 acre 29 guntas

    which was surrendered in lieu of alternate land, the

    erstwhile owner obtained an order under the PTCL Act

    cancelling the sale deed in favour of the appellant.

    Pursuant to the direction of the Assistant Commissioner,

    compensation was issued to the erstwhile land owner.

    Thus, the compensation in respect of 4 acres 30 guntas of

    land (1 acre 1 gunta in Survey No.6/6, 1 acre 17 guntas in

    Survey No.7/7B, 1 acre 33 guntas in Survey No.7/5A and

    19 guntas in Survey No.4/2) was disbursed to original

    – 39 –

    WA No. 273 of 2023

    landowners in 2008 itself. The appellant is actively

    litigating to assert title over certain acquired properties.

    The trial Court in Original Suit No.818/2008 c/w Original

    Suit No.126/2007 has already passed a decree against the

    appellant and held title in favour of some other

    landowners. Therefore, the appellant is contesting the

    same in Regular First Appeal No.2461 of 2023.

    36. It is also learnt that pursuant to the order of the

    learned Single Judge in impugned writ petition, the KIADB

    has passed a general award and deposited the

    compensation amount of Rs.4,22,36,484/- with the

    reference Court for adjudication of title with respect to

    properties in Hunchur Village. Therefore, the appellant

    lacks the locus standi for filing the instant appeal. Since

    the appellant failed to pay the development charges in

    time, i.e. even after a decade, the KIADB allotted 10 acres

    of land in Plot No.1 at Phase-1 of Hi-Tech, Defence and

    Aerospace Park(IT) Sector, Industrial Area in favour of

    respondent No.3 and Plot No.1-P at Phase-1 of Hi-Tech

    Defence and Aerospace Park(IT) Sector Industrial Area in

    – 40 –

    WA No. 273 of 2023

    favour of respondent No.4. Pursuant to the decision taken

    at the 138th State Level Single Window Clearance

    Committee (SLSWCC) Meeting held on 07.03.2023,

    in-principle approval was given through the Government

    Order dated 18.03.2023, after which the allotment letters

    were given by respondent KIADB in favour of respondent

    Nos.3 and 4 on 23.03.2023. A confirmatory letter of

    allotment was issued on 05.02.2024 and the possession of

    land was handed over to respondent No.3 on 06.02.2024

    vide Annexure-R3. The record further reveals that

    respondent No.3 has paid a sum of Rs.2,80,50,000/- on

    18.03.2023 to KIADB towards 10% of the cost of the land

    as premium and EMD. Further, the balance 90% of the

    cost of the land amounting to Rs.25,83,00,000/- was paid

    to KIADB on 14.09.2023 and Rs.7,00,000/- was paid on

    09.11.2023. In total, respondent No.3 has paid a total

    consideration of Rs.28,70,08,995/-, against which, the

    KIADB has registered a lease deed on 08.02.2024.

    Respondent No.3, in addition, has also paid a stamp duty

    of Rs.1,43,60,950/- on the registered deed vide

    – 41 –

    WA No. 273 of 2023

    Annexure-R3-E. The khata also reflects that Plot No.1 has

    been encumbered on lease to respondent No.3 vide

    Annexure-R3-J. Respondent No.3 has also received

    demand of Rs.1,10,402/- towards land tax on 11.07.2024.

    In light of the same, respondent No.3 has better right in

    law.

    37. It is pertinent to note that neither in the

    SWLCC’s order or the order of this Court, there is a

    mention of the exact land proposed to be allotted to get

    the land allotted to the appellant.

    38. Insofar as respondent No.4 is concerned, on

    18.03.2023, respondent No.4-M/s.Venus Technologies Ltd.

    approached the State Government for allotment of land

    through KIADB for setting up integrated IT/ITES park and

    residential retail mixed use project with an investment of

    Rs.249.70 crores generating an employment of about 700

    persons vide Annexure-A1. Therefore, on 23.03.2023, the

    KIADB allotted 10 acres of land in Plot No.1P in Phase 1 of

    Hi-Tech Defense Aerospace Park, IT Sector Industrial Area,

    Bengaluru. Respondent No.4 was directed to pay premium

    – 42 –

    WA No. 273 of 2023

    of Rs.2,80,000/- per acre plus 5% extra cost for plot

    facing more than 45 feet road width. Therefore,

    respondent No.4 has paid amount of advance of

    Rs.2,80,50,000/- on the date of allotment and amount of

    Rs.13,00,00,000/- was deposited on 19.11.2025 as

    directed by the KIADB.

    39. In the present case, admittedly, the lease-cum-

    sale agreement was neither executed in favour of the

    appellant nor has the appellant commenced the production

    in compliance with the terms and conditions of the letter of

    allotment. More importantly, the appellant has not paid

    the development charges to the KIADB. It is pertinent to

    note that the KIAD Act has been enacted to promote the

    establishment and orderly development of industries. The

    allotment of industrial land in industrial areas is for the

    purpose of industrial development of the State. Further, in

    terms of the conditions of allotment, the appellant was

    also required to commence production within 24 weeks

    from the date of taking possession of the land. Although,

    – 43 –

    WA No. 273 of 2023

    the appellant was put in possession of the property, the

    appellant has not commenced the production till date.

    40. The aspect of allotment of land is stipulated in

    Regulation 10 of the Karnataka Industrial Area

    Development Board Regulations, 1969 (for short,

    ‘Regulations’) which has been made in exercise of the

    powers conferred under Section 41(2)(B) of the KIAD Act,

    which reads as under:

    “41. Power to make regulations.-

    (1) The Board, may, with the previous approval of
    the State Government, by notification make
    regulations consistent with this Act and the rules
    made thereunder, to carry out the purposes of this
    Act.

    (2) In particular and without prejudice to the
    generality of the foregoing power, such regulations
    may provide for,-

    (a) xxx xxx xxx

    (b) the terms and conditions under
    which the Board may dispose of land;”

    41. Regulation 10 of the Karnataka Industrial Area

    Development Board Regulations, 1969, reads as under:

    “10. Allotment.- (a) The Board, on being satisfied that
    the person, firm or company who has made an
    application is likely to start production within a

    – 44 –

    WA No. 273 of 2023

    reasonable period, and is not one which is declared
    obnoxious under Regulation 14 may make an allotment
    in his/their favour;

    (b) The Board may constitute subcommittees for
    considering allotment of plots and also delegate its
    power to the Executive Member, if necessary;

    (c) The Executive Member shall notify such applicant to
    whom an allotment is made to execute the agreement
    in Form 3 or 4 or 5 as the case may be with such
    modification as may be necessary in each case on such
    date, time and place as may be fixed by the Executive
    Member and to pay the consideration for the occupancy
    of the land as fixed by the Board within time fixed by
    the Board;

    (d) Failure to execute the agreement or to pay the sums
    demanded by the Executive Member as per notice given
    under Regulation 10(c) will render the allottee to have
    deemed to have declined the allotment;

    (e) The Board or with the authority of the Board, the
    Executive Member will have the discretion to grant
    extension of time for complying with the terms of the
    notice issued under Regulation 10(c) with or without
    payment of interest at 9% on the sums payable in
    terms of the said notice for the extended period.”

    42. It is clear from a plain reading of Regulation

    10(d), that failure to execute the agreement will render

    the allottee to have deemed to have declined the

    allotment. It is also relevant to note Regulation 15 of the

    Karnataka Industrial Area Development Board Regulations,

    1969, which reads as under:

    “15. Allottee as a Licensee.-Till the agreement for
    lease, sale or lease-cum-sale is executed, the allottee
    will be considered as a mere licensee who shall have

    – 45 –

    WA No. 273 of 2023

    licence and authority only to enter upon the land
    allotted to him and to start construction of buildings or
    works and will have no power to legally alienate his
    interest except to the extent allowed by the Board for
    raising loans. No sub-division of the plot will be allowed
    without the permission of the Board given in writing.”

    43. Further, a plain reading of Regulation 15 would

    indicate that prior to the execution of the agreement, the

    allottee will be considered as a mere licensee and it is

    entitled to enter upon the land allotted to start

    construction.

    44. In the present case, the appellant has been put

    in possession of the subject land as a licensee only for the

    limited purpose of commencing construction. Further,

    default of the licensee in executing the agreement is to be

    constituted as the allottee having declined the allotment,

    even more than ten years, the appellant has not paid the

    development charges as directed by the KIADB.

    45. Therefore, the payments not having been paid in

    terms of the letter of allotment, cancellation of the

    allotment is automatic and issuance of notice under

    Section 34B of the KIAD Act does not arise. A similar view

    – 46 –

    WA No. 273 of 2023

    is observed by the Co-ordinate Bench of this Court in Writ

    Appeal No.533 of 2021 disposed of on 19.08.2021.

    46. With regard to the contention put forth on behalf

    of the appellant that the procedure under Section 34B of

    KIAD Act was required to be followed and the appellant

    was required to be given notice before the allotment was

    cancelled, it is pertinent to note that the learned Single

    Judge of this Court in Writ Petition No.279 of 2024 decided

    on 12.01.2024 held that Section 34B of KIAD Act is to be

    followed only after execution of the lease-cum-sale

    agreement.

    47. Section 34B of KIAD Act reads as under:

    34B. Resumption of the possession of premises
    including the residential tenements on breach of
    terms and conditions of lease or holding without
    authority.-

    (1) Where the Board is of the opinion that an allottee
    of any premises or part thereof or residential
    tenement in an industrial area or industrial estate has
    violated any of the terms or conditions of allotment or
    holds it without any authority it may, without
    prejudice to Section 25 give notice to such allottee and
    Banks or Financial Institutions, in whose favour the
    Board has permitted the mortgage or leasehold rights
    of the premises, or residential tenement specifying the
    breaches of the terms and conditions of the allotment
    calling upon the allottee to remedy such breaches
    within a time stipulated in the notice.

    – 47 –

    WA No. 273 of 2023

    (2) If the allottee fails to remedy the breaches within
    the time so stipulated, the Board shall serve a notice
    upon the allottee under intimation to such Bank or
    Financial Institutions to show cause within thirty days
    from the date of service of notice, why the possession
    of the premises or part thereof or residential tenement
    should not be resumed.

    (3) After considering the cause, if any, shown by the
    allottee and after giving him an opportunity of being
    heard, the Board may pass such orders, as it deems
    fit.

    (4) Where the Board passes an order under sub-
    section (3), for resuming possession of the premises
    or part thereof or residential tenement in the industrial
    area it may, by notice in writing, order any allottee to
    surrender and deliver possession thereof to the Board
    or any person duly authorised in this behalf within the
    date specified in the notice.

    (5) If any allottee refuses to surrender or deliver the
    possession of the premises or part thereof or
    residential tenement within the time specified in the
    notice, the Board or any officer authorised by it in this
    behalf may resume the possession of the premises or
    part thereof or residential tenement free from all
    encumbrances and for that purpose may use force as
    may be necessary. [Section 34B inserted by Act No.19
    of 2000 w.e.f. 25-5-2000].”

    48. Therefore, Section 34B of the KIAD Act clearly

    indicates that the section is applicable for resumption of

    possession for breach in the terms and conditions of lease

    or holding without authority. The said provision indicates a

    situation, where the allottee has been put in possession of

    the property and an agreement of lease has been

    executed in favour of the allottee. However, in the present

    – 48 –

    WA No. 273 of 2023

    case, no such agreement or lease has been executed. The

    said provision also contemplates a situation of holding

    possession without authority, which is not so in the

    present case as the allottee has been put in possession

    pursuant to the letter of allotment and is bound by the

    terms and conditions of the said letter of allotment.

    Further, as noted above, the failure of the appellant to

    have got the lease-cum-sale agreement executed is to be

    understood as the appellant having deemed to have

    declined the allotment.

    49. As the appellant failed to deposit the

    development charges to the KIADB, the SWLCC allotted 10

    acres of land each in favour of respondent Nos.3 and 4,

    respectively. On the other hand, now, by virtue of lease

    deed and possession being given, respondent Nos.3 and 4

    have a right in respect of the property allotted to them,

    respectively.

    50. On the other hand, the appellant is not able to

    seek alternative land as it has not complied with condition

    for more than ten years under which the proposed

    – 49 –

    WA No. 273 of 2023

    allotment was sought to be made. The appellant has no

    right in respect of these lands and it can be allotted any

    other land, if he makes an application to the KIADB.

    51. Further, there is no exchange of lands as the

    KIADB is required to handover industrial plots which have

    electricity and water connections, road and drainage apart

    from other amenities which entails additional cost, which is

    claimed as development charges.

    52. The contention of the appellant is that it is ready

    to pay developmental charges of the year 2010 and not of

    the year 2013, as the same has no merit consideration.

    The order of KIADB was clear that terms and conditions of

    allotment including development charges will be informed

    in due course i.e. as and when they are liable to be paid.

    It is to be noted that as alternative land is being given, the

    development charges becomes payable only when the

    plots are ready.

    53. Therefore, the conduct of the appellant disentails

    it from claiming any discretion at the hands of the Court

    – 50 –

    WA No. 273 of 2023

    and there is no violation of law, unreasonableness or

    irrationality to claim interference under Article 226 of the

    Constitution.

    54. Therefore, the law mandates that, the appellant

    was entitled to alternative land, provided it fulfilled the

    conditions, but the appellant failed to comply with the

    conditions. There is no violation of law or irrationality in

    the decision of the Committee to cancel the allotment

    made in favour of the appellant and allot the land to

    respondent Nos.3 and 4, respectively.

    55. The development of the State cannot be kept at

    abeyance till the time appellant’s issues were sorted out.

    The order passed by the learned Single Judge in Writ

    Petition No.16367 of 2007 was conditional upon the

    appellant having title to the properties. There is no

    violation of the order of the learned Single Judge inasmuch

    as the appellant failed to fulfill the underlying basis of the

    consent order.

    – 51 –

    WA No. 273 of 2023

    56. The perusal of the material on record clearly

    demonstrates that there are multiple disputes in relation

    to the entire parcel of land. When the order of cancellation

    of allotment is not challenged before this Court, the order

    of the learned Single Judge dismissing the writ petition

    while protecting the rights of the appellant to seek

    compensation by directing passing of general award

    cannot be altered.

    57. The appellant even after twelve years of disposal

    of Writ Petition No.16367 of 2007 clings upon the said

    order and submits that the development charges that are

    asked for were contrary to the order and therefore, it

    cannot form a part of allotment letter. Such

    representations come about twelve years after disposal of

    the petition and almost close to nine years, after

    impugned communication. However, same has been

    replied to by the Board on 26.04.2022, observing that

    unless development charges were paid, no allotment in

    favour of the appellant could be made as the Court did not

    observe that development charges need not be paid.

    – 52 –

    WA No. 273 of 2023

    Therefore, as a matter of fact, the order of the Court

    recording the memo which reads that the allotment would

    be made in terms of certain terms and conditions that

    would be drawn for such allotment and includes

    development charges payable by the appellant. Thus,

    recording the said memo, the learned Single Judge had

    disposed of the writ petition. Therefore, if the appellant

    wanted allotment or lease-cum-sale agreement to be

    executed, it ought to have complied with communication

    for payment of development charges. In fact, it was

    directed to be paid within thirty days from the

    communication dated 31.12.2013. Now, almost thirteen

    years is elapsed. Even today, the appellant has not paid

    development charges, as was demanded.

    58. Under Article 300A of the Constitution of India,

    no doubt, the land owner has a right over the property

    and that cannot be taken away, is unacceptable

    submission. The land was always available to the

    appellant, subject to certain conditions of KIADB.

    – 53 –

    WA No. 273 of 2023

    59. Sri B.B. Patil, learned counsel for respondent

    No.2-Board, vehemently contended that the appellant has

    defaulted in payment of development charges and

    therefore, the allotment of plot cannot be made in favour

    of the appellant and it is always open to the appellant to

    claim compensation in accordance with law for acquisition

    of its property. Therefore, the submission of learned

    counsel for respondent No.2-Board merits consideration in

    the peculiar facts of the case as the appellant for nearly

    ten years did not come forward to pay development

    charges of Rs.15,75,75,000/- that was demanded.

    Therefore, there is no merit consideration to set aside the

    communication dated 31.12.2013 after thirteen years of

    its issuance.

    60. As the Board allotted 10 acres land each in

    favour of respondent Nos.3 and 4 and they paid entire

    consideration amount as ordered by the KIADB and

    allotment letter, lease-cum-sale agreement, khata also

    stands in the name of respondent Nos.3 and 4,

    respectively in respect of their extent of land and the fact

    – 54 –

    WA No. 273 of 2023

    that the appellant failed to deposit development charges

    since thirteen years, the learned Single Judge has rightly

    dismissed the writ petition filed by the appellant and we

    find no infirmity in the order passed by the learned Single

    Judge in declining to interfere with the impugned

    communication dated 31.12.2013.

    Accordingly, we proceed to pass the following:-

    ORDER

    1. The writ appeal is dismissed.

    2. Pending interlocutory applications, if any,

    shall stand dismissed.

    3. No order as to costs.

    Sd/-

    (ANU SIVARAMAN)
    JUDGE

    Sd/-

    (VENKATESH NAIK T)
    JUDGE

    MN/-



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