Observing that “acquiring onshore for a profitable backstage entity nether the guise of nationalist intent amounts to a fraud connected statute and the Constitution”, the High Court of Karnataka has quashed the State government’s 2012 notifications acquiring backstage lands for the payment of the Indian Machine Tool Manufacturers Association (IMTMA) for constructing multi-level car parking facilities for its Bangalore International Exhibition Centre (BIEC) connected Tumkuru Road.
A part seat comprising Justice D.K. Singh and Justice T.M. Nadaf allowed a batch of appeals filed by Mukesh Kumar and different landowners from Madanayakanahalli village, portion mounting speech a 2013 single-judge bid that had partially upheld the acquisition notifications of 2012.
The Karnataka Industrial Area Development Board (KIADB) had acquired the lands nether the provisions of the KIAD Act and the landowners had challenged the acquisition by arguing that it was not for a genuine nationalist purpose.
‘Profit making entity’
“The authorities cannot get onshore for an idiosyncratic entity of its prime astatine the disbursal and outgo of mediocre landowners,” the Bench observed portion noting that that IMTMA, a charitable institution managing BIEC, is simply a financially robust entity with important profits, afloat susceptible of purchasing onshore done backstage negotiations — arsenic it had already purchased lands done backstage transaction for enlargement of the activities of the BIEC.
“...it is thing but a fraud committed connected statute by the authorities to divest the landowners from their onshore holdings for a pittance successful favour of a backstage entity for enlargement of its concern and making much and much profit. This benignant of workout of powerfulness is simply a statutory and law fraud by the State authorities,” the Bench remarked connected KIADB enactment of acquiring onshore successful favour of IMTMA.
Pointing retired that contempt the last notification being issued successful 2012, nary compensation grant was ever passed, and not a azygous rupee was deposited oregon paid to the landowners by the KIADB, the Bench held that this inordinate hold rendered the acquisition proceedings lapsed, violating the landowners’ close to an businesslike and expeditious process arsenic mandated by Article 300A of the Constitution.
Orderly development
The Bench said that the KIAD Act’s nonsubjective is to found concern areas for orderly development, and allot lands for backstage companies arsenic per the process for constitution their industrial/business unit, and not to get onshore for a azygous backstage entity, an enactment the Bench termed a “colourable workout of power.”

6 days ago
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