Reserved on : 24.09.2025 Pronounced on : 25.10.2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 25TH DAY OF OCTOBER, 2025 BEFORE THE HON'BLE MR. JUSTICE M. NAGAPRASANNA WRIT PETITION No.25036 OF 2015 (GM - KIADB)
BETWEEN:
M/S. R.S. KALYANI HOTELS PVT. LTD., A COMPANY INCORPORATED UNDER THE COMPANIES ACT, REPRESENTED BY ITS DIRECTOR R.RAVICHANDRA AND HAVING ITS REGISTERED OFFICE AT NO.7,100 FEET ROAD, 4TH B BLOCK, KORAMANGALA, BENGALURU – 560 034.
... PETITIONER (BY SRI ASHOK HARANAHALLI, SR.ADVOCATE A/W SRI ABHINAY Y.T., ADVOCATE)
AND:
1 . THE STATE OF KARNATAKA BY ITS PRINCIPAL SECRETARY, AND ADDITIONAL CHIEF SECRETARY COMMERCE AND INDUSTRIES DEPARTMENT, VIKAS SOUDHA, BENGALURU – 560 001.
2 . THE KARNATAKA INDUSTRIAL AREAS DEVELOPMENT BOARD
4TH AND 5TH FLOOR, EAST WING, KHANIJA BHAVAN, RACE COURSE ROAD, BENGALURU – 560 001 REPRESENTED BY ITS CHIEF EXECUTIVE OFFICER.
3 . THE JOINT DIRECTOR THE KARNATAKA INDUSTRIAL AREAS DEVELOPMENT BOARD, 4TH AND 5TH FLOOR, EAST WING, KHANIJA BHAVAN, RACE COURSE ROAD, BENGALURU – 560 001.
... RESPONDENTS (BY SRI SPOORTHY HEGDE N., HCGP FOR R-1;
SRI K.SHASHIKIRAN SHETTY, ADVOCATE GENERAL A/W SRI B.B.PATIL, ADVOCATE FOR R-2 AND R-3)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND
227 OF THE CONSTITUTION OF INDIA PRAYING TO DECLARE THAT THE RESPONDENTS HAVE NO RIGHT TO CHANGE THE MODE OF ALLOTMENT FROM LEASE-CUM - SALE FOR A PERIOD OF 10 YEARS TO A LEASE FOR A PERIOD OF 99 YEARS AFTER THE ALLOTMENT WAS MADE; QUASH THE GOVERNMENT ORDER BEARING NO.CI 511 SPQ 2013, DATED 7.8.2014 VIDE ANN-D; QUASH THE COMMUNICATION BEARING NO.IADB/HO/ALLOT/JD/BIT- 19172/2444/2015-16 DATED 22.5.2015 / 23.5.2015 ISSUED BY THE R-3 VIDE ANN-G, BY WHICH THE ALLOTMENT HAS BEEN CANCELLED; DIRECT THE RESPONDENTS TO ABIDE BY THE TERMS OF THE ALLOTMENT LETTER DATED 15.2.2013 IN SO FAR AS IT RELATES TO THE ALLOTMENT BY LEASE CUM SALE BASIS FOR A PERIOD OF 10 YEARS; RESTRAIN THE RESPONDENTS FROM DEMANDING OR COLLECTING THE BALANCE SUMS FROM THE PETITIONER UNTIL ALL THE AMENITIES THAT IS REQUIRED TO ESTABLISH AN AREA AS AN INDUSTRIAL AREA ARE PROVIDED.
THIS WRIT PETITION HAVING BEEN HEARD AND RESERVED FOR ORDERS ON 24.09.2025, COMING ON FOR PRONOUNCEMENT THIS DAY, THE COURT MADE THE FOLLOWING:-
CORAM: THE HON'BLE MR JUSTICE M.NAGAPRASANNA
CAV ORDER
The petitioner is before this Court seeking the following reliefs:
(a) “Declare that the respondents have no right to change the mode of allotment from lease-cum-sale for a period of 10 years to a lease for a period of 99 years after the allotment was made and
(b) Consequently, quash the Government order bearing No.CI 511 SPQ 2013 dated 7-08-2014 (annexure-D) and
(c) Quash the communication bearing No. IADB/HO/Allot/JD/BIT-19172/2444/2015-16 dated 22-05-2015/ 23.5.2015 issued by the 3rd respondent (Annexure-G) by which the allotment has been cancelled.
(d) Direct the respondents to abide by the terms of the allotment letter dated 15-02-2013 insofar as it relates to the allotment by lease cum-sale basis for a period of 10 years.
(e) Restrain the respondents from demanding or collecting the balance sums from the petitioner until all the amenities that is required to establish an area as an Industrial Area are provided.
(f) Pass such other orders as this Hon’ble Court deems fit.”
2. Heard Sri Ashok Haranahalli, learned senior counsel appearing for the petitioner, Sri Spoorthy Hegde N, learned High Court Government Pleader for respondent No.1 and Sri K Shashikiran Shetty, learned Advocate General appearing for respondents 2 and 3.
3. Facts in brief, germane, are as follows: -
3.1. The petitioner who is in the business of food industry in the name and style of R.S.Kalyani Hotels Private Limited and desirous of setting up of an establishment in Bangalore International Tech Park for establishing a hotel and convention centre, applies for allotment of land to the 2nd respondent/Karnataka Industrial Areas Development Board through the Single Window Clearance Committee. Pursuant to the clearance by the Single Window Clearance Committee, the petitioner deposits a sum of ₹1.08 crores for allotment of 3 acres of land in the Bangalore IT Park. This is said to have happened between July 2010 and May 2011. On 15-02-2013, land measuring 3 acres was allotted on lease-cum-sale basis for a period of 10 years on a tentative cost of ₹1.80 crores per acre with addition of 10% extra for 3 acres. The petitioner then requests time till 13-08-2015 to pay balance amount of 80% as 20% had already been paid. The Board then extends the time by 90 days for payment of balance amount in terms of its communication dated 05-08-2014. Pending completion of payment, it appears that Government of Karnataka changes the policy decision of approving allotment of land by the Board on lease cum-sale basis existing then, only on lease basis, for a period of 99 years. The Government order was also indicative of the fact that the lease would apply to such projects cleared by the Committee constituted under the Industrial Facilitation Act.
3.2. The Board then calls upon the petitioner to pay balance amount along with interest from 05-11-2014. The petitioner is said to have paid another ₹30/- lakhs and informed that it is approaching the Bank for loan and would pay the balance amount on or before 31-08-2015. The petitioner did not pay the balance amount and as per communication to the petitioner, the allotment of plot was cancelled, as full payment was not made in time and at the same time, the Board is said to have encashed ₹30/- lakhs that was paid by the petitioner. At this juncture, the petitioner approaches this Court in the subject petition. This Court had protected the interest of the petitioner, by grant of an interim order on 23-06-2015. The said order continued till the matter comes to be disposed of, on a memo filed by the petitioner that the petition had become infructuous. The learned counsel for the petitioner, thereafter files an application, seeking recall of the order, on the score that the petition had become infructuous only for the reason that the Board had assured that it would resolve the dispute. When the resolution did not come about, the petitioner preferred two applications seeking recall of the order. This Court, on 29-02-2024, had passed the followi
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