IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 18^TH DAY OF NOVEMBER, 2025

BEFORE

THE HON'BLE MRS. JUSTICE K.S. HEMALEKHA

WRIT PETITION NO.5761 OF 2025 (APMC)

BETWEEN:

M/S. KEERTHAN ENTERPRISES,

(A PARTNERSHIP FIRM),

NO.16/46, ONION POTATO COMPLEX,

A.P.M.C., YESHWANTHPUR,

REPRESENTED BY ITS PARTNER,

SRI SRIRAMULU

S/O VENKATASWAMY,

AGED ABOUT 64 YEARS.

…PETITIONER

(BY SMT. SHILPA RANI, ADVOCATE)

AND:

1. STATE OF KARNATAKA,

REPRESENTED BY ITS PRL. SECRETARY,

DEPARTMENT OF COOPERATION,

Digitally signed by

M.S. BUILDING, BENGALURU-560 001.

MAHALAKSHMI B M

Location: HIGH

COURT OF 2. THE DIRECTOR OF AGRICULTURAL MARKETING,

KARNATAKA NO.16, 2^ND RAJABHAVANA ROAD,

BENGALURU-560 001.

3. THE AGRICULTURAL PRODUCE MARKET COMMITTEE,

MAHATMA GANDHI COMPLEX,

A.P.M.C. MARKET YARD,

YESHWANTHPUR,

BENGALURU-560 022

REPRESENTED BY ITS SECRETARY.

…RESPONDENTS

(BY SMT. RASHMI M. RAO, HCGP FOR R-1 & R-2;

SRI NANDAKISHORE, ADVOCATE FOR R-3)

THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO DIRECT THE RESPONDENTS TO CONSIDER THE REPRESENTATIONS OF THE PETITIONER DATED 14.02.2025 PER ANNEXURE-K AND TO ACCEPT THE BALANCE LEASE CUM SALE CONSIDERATION AS PER OFFER LETTER DATED 11.01.2023 BEARING NO.KRU HU MA SA(BEM)MALIGE/3648/2022-23 ISSUED BY THE RESPONDENT NO.3 IN RESPECT OF SUBJECT SHOP NO.16/46 AS PER ANNEXURE-E AND REGISTER THE SUBJECT SHOP IN THE NAME OF THE PETITIONER FORTHWITH AND ETC.

THIS PETITION COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

CORAM: HON'BLE MRS. JUSTICE K.S. HEMALEKHA

ORAL ORDER

The petitioner has approached this Court seeking a direction to the respondents to consider the petitioner's representation dated 14.02.2025 and to accept the balance lease-cum-sale consideration in terms of the offer letter dated 11.01.2023, issued by the respondent No.3 in respect of Shop No.16/46 situated in Onion and Potato Market Yard, earlier located at Yeshwanthpur. The petitioner, has also challenged, by way of amendment, the communication dated 28.03.2025, whereby respondent No.3 has rejected the request for conversion of lease and licence into lease cum sale and returned the amount earlier deposited.

2. The factual background reveals that the petitioner was initially allotted Shop No.16 on leave and licence basis in the year 2009 in Yeshwanthpur Main Market Yard and continued therein for several years. The petitioner thereafter applied for conversion for allotment into lease cum sale in the year 2022. Pursuant to which, offer letters were issued to the petitioner on 11.01.2023, and the petitioner remitted 25% of the revised value of `5,45,125/-. It is not in dispute that subsequent to the said process, the State Government issued a notification dated 17.01.2023 shifting the regulated trade of onion and potato to Dasanapura Sub-market Yard, and the Director of Agriculture Marketing issued a further notification dated 24.02.2023 de-notifying such trade from Yeshwanthpur yard. The validity of these notifications had been challenged by the certain trade holders which came to be upheld by this Court in the case of Athithi Trading Company and Others Vs. State of Karnataka and Others, W.P.No.3011/2025 and connected matters D.D18.07.2025 (Athithi Trading Company)

3. Respondent No.3 rejected the request for lease-

cum-sale, stating that after shifting of the entire regulated trade from Yeshwanthpura to Dasanapura, the earlier premises ceased to operate as allotment units and the shifting is to be treated as afresh allotment, making the petitioner eligible only for allotment on leave and licence basis in accordance with the policy applicable to Dasanapura. The amount deposited by the petitioner has been returned through cheque, which the petitioner admits having received.

4. The principle issue concerns the applicability of Rule 12(2) of the Karnataka Agricultural Produce Marketing (Regulation of Allotment of Property In Market Yards) Rules 2004 (‘Rule, 2004’ for short), wherein it is provided that on comp