Absence of guidance value puts spotlight on Rs 1,400-crore TDR compensation

Bengaluru: Even though the state government approved the utilisation of palace land by granting transferable development rights (TDR) to the erstwhile royal family of Mysore, determining the extent of compensation is going to be a sticking point in the absence of guidance value for the 15 acres and 39 guntas of land. The proposal of granting TDR worth Rs 1,400 crore is likely to come under the scanner. 

In an order issued on March 15, the Siddaramaiah-led government states that it has decided to utilise the palace land to widen the roads “subject to the grant of TDR as per the rules.” The Supreme Court orders dated November 2014 and May 2022 had also specified compensation based on TDR rules. 

As per the Karnataka Town and Country Planning (Benefits of Development Rights) Rules 2016, guidance value is a key component for determining the extent of TDR compensation. What can be noted is that the value for Bangalore Palace property (known as CTS 417) is not mentioned in the Gazette published by the Department of Stamps. What’s more, the palace land has been notified as park and open space in the Revised Master Plan 2015. 

According to sources, the BBMP has now approached the Central Valuation Committee headed by the Inspector General of Registration and Commissioner of Stamps, requesting them to fix the guidance value for the property. 

Rs 1,400 crore value

In a letter dated February 2021, the BBMP had requested the state government to reconsider its decision to grant TDR for the utilization of palace land, stating it is worth nearly Rs 1,400 crore. The civic body arrived at the extent of compensation by considering a rough guidance value of Rs 10,037 per square feet for 13.91 lakh sq ft of palace land. “This huge amount of TDRs in the market will see rampant mushrooming of concrete buildings in the City,” the BBMP’s letter stated, while pointing out the state government enacted a special act for the acquisition and transfer of 472 acres of Bengaluru Palace land by providing compensation of Rs 11 crore. 

The Supreme Court had ordered ‘status-quo’ on the 1996 Act, which had received the ascent of the President. The BBMP feared that it would not be able to take back the TDR if the apex court verdict comes in favour of the government. 

In two earlier cases, the BBMP had obtained a piece of palace land for the purpose of widening Palace Cross Road near Vasanthnagar and constructing an underpass near Mekhri circle. On both occasions, the compensation amount was paid proportionately to the land value based on the original award determined under the 1996 Act, that is Rs 11 crore.

Five years after the BBMP sought utilisation of about 15 acres land, the Supreme Court ordered TDR compensation to the petitioners as per the rules. Considering the compensation formula followed in two earlier cases (Vasanthnagar and Mekhri circle), the TDR value for the 15 acres of land comes to about Rs 35 lakh, it is learnt. 

Sources in the government also told DH that the ownership of 472 acres of land including 15 acres lies with the Department of Personal and Administrative Reforms (DPAR).

“Other than fixing the guidance value, the concerned departments is also required to transfer khata to the royal family. That is likely to weaken the Supreme Court battle where the state government may lose custody of the entire 472 acre of palace land,” the officer said.