The Supreme Court has issued interim orders regarding the Transferable Development Rights (TDR) certificates for the acquisition of 15 acres of the Bangalore Palace Grounds. The Court directed that all TDR certificates remain with its Registry and cannot be used if they have already been released.
A bench of Justices Surya Kant, Dipankar Datta, and N Kotiswar Singh passed this order while hearing a batch of contempt petitions. This action comes after the Karnataka government had applied in a connected appeal challenging an earlier order to release the TDR certificates to the legal heirs of the Mysuru royal family.
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In detail, the Court’s directions are:
- All TDR certificates issued through interim or contempt orders will remain with the Supreme Court Registry.
- If TDRs have already been handed to non-applicants, they must not be used or sold until further orders.
- No third-party interest or personal benefit is allowed from the TDRs released by the Registry.
- All matters will be referred to a three-judge bench for a final hearing starting the week of August 18.
- A review petition filed by the Karnataka government will be heard in the week starting July 21.
The Court also clarified that the interim directions are subject to the outcome of the review petition. If the review is denied, the interim orders will continue for four more weeks or until the three-judge bench hears the matter.
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To prevent further complications, the Court has put on hold the effect of its earlier orders passed in 2014 and on dates 10.12.2024, 17.05.2022, 19.03.2024, and 22.05.2025.
Quoting Justice Surya Kant:
“There was some bonafide error in the 2014 order due to lack of proper assistance... When there is a likelihood of an order causing an irreversible impact on public interest, extraordinary jurisdiction needs to be invoked.”
The dispute traces back to 1996, when the Karnataka government passed the Bangalore Palace (Acquisition and Transfer) Act to acquire the palace grounds. The High Court upheld the Act, prompting an appeal by the royal family in 1997. The case has been pending before the Supreme Court since then.
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Recently, Senior Advocate Kapil Sibal argued that TDRs, allowed only after a 2004 amendment, should not be applied retrospectively. The Court had earlier ordered the release of TDRs worth over ₹3,000 crores for the acquired land. However, the claimants’ counsel argued that the TDRs had already been granted.
The matter was mentioned on May 26 before a bench led by CJI BR Gavai and was later listed before the current bench for hearing. The Court acknowledged the procedural issues and stated that appropriate directions might be needed from the Chief Justice, including the formation of a larger bench to hear the appeal.
The case has now been posted before a three-judge bench for further hearing.
Case Title: SRI SRIKANTA D N WADIYAR (D) BY LR. Versus STATE OF KARNATAKA AND ORS., C.A. No. 3303/1997
