EWS quarters case: Karnataka High Court issues notices to BBMP, state govt

Bengaluru: The Karnataka High Court on Wednesday issued notices to the state government, the Bruhat Bengaluru Mahanagara Palike (BBMP), and others in response to a petition filed by the Karnataka EWS Residential Welfare Association, seeking a Lokayukta probe into alleged fraudulent actions.

The petitioners claimed that the BBMP, in collusion with project developer Maverick Holdings and Investments Private Limited (MHIPL) and others, deprived them of their land and shelter through deceptive means.

The BBMP had constructed quarters for the Economically Weaker Section (EWS) in Koramangala, but due to faulty construction, several blocks collapsed, forcing the evacuation of families.

The petitioners, representing an association of 1,512 allottees, argued that they have a proportional share in the undivided land as per a 2012 High Court order. This order also included a compromise agreement, wherein MHIPL was supposed to construct apartments on 7.2 acres of land. However, no such apartments were built.

On April 1, 2019, MHIPL, with the BBMP’s consent, executed a mortgage deed that transferred 50% of the land belonging to the 1,512 EWS families to Sammaan Capital Limited. The petitioners
argued that this deed was
carried out without their consent and is illegal and fraudulent.

Subsequently, in August 2024, Sammaan Capital Limited issued a public notice under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Act, claiming Rs 560.46 crore from Garuda Maverick Infrastructure Private Limited, Embassy Garuda Realty Ventures LLP, and Maverick Holdings, among others.

The notice identified 3.82 acres (15,459 sqm) of land as part of the claim, which the petitioners contend is within the 22 acres of land in which they have an undivided interest.

The petitioners further stated that the BBMP should not have consented to MHIPL’s mortgage deal with any third party, including Embassy Garuda Realty Ventures LLP, and labelled this conduct as fraudulent. They urged the court to direct the Lokayukta police to register a complaint against all parties involved in what they describe as a conspiracy.

Justice Hemant Chandanagoudar also issued notices to MHIPL, Garuda Maverick Infrastructure Project Private Limited, Embassy Garuda Realty Ventures LLP, Sammaan Capital Limited and the Lokayukta police.

The case has been adjourned to September 30 for further consideration.