The Bengaluru Palace Grounds, an iconic landmark in the heart of Karnataka’s capital, has long been a symbol of the state’s royal heritage and cultural pride. Spanning over 450 acres, this sprawling estate, once the residence of the Mysuru royal family, has become the focal point of a decades-long legal battle between the Karnataka government and the heirs of the erstwhile royal family. The latest chapter in this saga unfolded on May 26, 2025, when the state government filed a plea in the Supreme Court, challenging an order to release Transferable Development Rights (TDR) certificates worth approximately ₹3,400 crore for 15 acres and 17.5 guntas of land acquired for road-widening projects. This blog explores the historical context, legal intricacies, and broader implications of this high-stakes dispute.
A Historical Backdrop: The Palace and Its Legacy
The Bengaluru Palace, constructed in 1878 by the Wadiyar dynasty, stands as a testament to the grandeur of the Mysuru royal family. Modeled after Windsor Castle, the palace and its sprawling grounds have been a cultural and historical cornerstone of Bengaluru. However, the estate’s ownership has been contentious since the 1970s, when the Karnataka government initiated efforts to acquire portions of the land under the Bangalore Palace (Acquisition and Transfer) Act, 1996. This legislation aimed to vest the 472-acre property with the state for public purposes, offering ₹11 crore as compensation—a sum the royal family deemed inadequate.
The 1996 Act sparked immediate legal challenges. The Mysuru royal family, led by the late Srikantadatta Narasimharaja Wadiyar, contested its constitutional validity, arguing that the compensation was grossly undervalued and that the acquisition violated their property rights. The dispute has since wound its way through the Karnataka High Court and the Supreme Court, with multiple rounds of litigation spanning nearly three decades. The current conflict centers on a smaller but significant parcel—15 acres and 17.5 guntas—acquired by the Bruhat Bengaluru Mahanagara Palike (BBMP) for widening Ballari and Jayamahal roads, critical arteries leading to the Kempegowda International Airport.
The TDR Controversy: A Modern Twist
Transferable Development Rights (TDR) certificates are a mechanism used by governments to compensate landowners for land acquired for public projects. Instead of cash, landowners receive TDR certificates, which grant them development rights to build additional floor area on other properties, transferable to third parties. In the Bengaluru Palace Grounds case, the Supreme Court, in a December 10, 2024, ruling, directed the Karnataka government to issue fresh TDR certificates based on the current market value of the acquired land, as per the Karnataka Stamps Act, 1957. This valuation, pegged at ₹2.83 lakh per square meter for Ballari Road and ₹2.04 lakh per square meter for Jayamahal Road, resulted in TDR certificates worth over ₹3,011 crore, a staggering increase from the initial ₹1 crore offered by the BBMP.
The state government, however, has resisted this directive. On May 22, 2025, the Supreme Court, in a contempt proceeding, ordered the immediate release of TDR certificates worth ₹3,400 crore to the legal heirs of the Mysuru royal family. The Karnataka government complied, handing over the certificates on May 23, but promptly filed a plea challenging the order, arguing that it was legally and financially untenable. The state contends that the 1996 Act, which fixed compensation at ₹11 crore for the entire 472 acres, should govern the acquisition, not the 2004 amendment to the Karnataka Town and Country Planning Act, which introduced TDR provisions. Senior advocate Kapil Sibal, representing the state, argued that applying TDR retroactively to a 1996 acquisition was invalid, as the concept did not exist at the time, and that the valuation based on 2024 market rates was disproportionate.
The Legal Battle: A Game of Contempt and Compliance
The Bengaluru Palace Grounds case has been marked by accusations of delays and non-compliance. The Supreme Court has repeatedly criticized the Karnataka government for “dragging its feet” on issuing TDR certificates. In December 2024, the court initiated contempt proceedings against state authorities, including the Karnataka Chief Secretary and the Special Land Acquisition Officer, for failing to adhere to earlier orders. The BBMP’s initial attempt to compensate the royal family with TDR worth ₹1 crore was deemed inadequate, as it was based on an outdated valuation that treated the land as agricultural, despite its prime urban location.
On February 27, 2025, the Supreme Court, led by Justices M.M. Sundresh and Aravind Kumar, ordered the state to deposit the TDR within a week, expressing frustration at the government’s inconsistent stance. The court rejected the state’s argument that the land’s agricultural classification justified a lower valuation, noting that the Palace Grounds had served as the private residence of the Maharaja of Mysore and was situated in the heart of Bengaluru. The state’s subsequent ordinance on January 29, 2025—the Bangalore Palace (Utilization and Regulation of Land) Ordinance—sought to assert control over the land and avoid acquisition, but the Supreme Court deemed it non-negotiable unless challenged or struck down.
The Karnataka government’s latest plea, filed on May 26, 2025, argues that the acquisition was governed by the 1996 Act, not the 2013 Land Acquisition and Rehabilitation and Resettlement Act, and that the TDR valuation based on 2024 market rates inflates the state’s financial burden. The state estimates that issuing TDR for the 15-acre parcel would allow for an additional 13,91,742 square feet of constructable area in Bengaluru, equivalent to a notional value of ₹1,396 crore after deducting 60% of the guidance value. If extended to the entire 472 acres, the compensation could exceed ₹1 lakh crore, a sum the state claims is unsustainable.
The Royal Family’s Perspective
The legal heirs of the Mysuru royal family, represented by advocates like T. Harish Kumar, have maintained that the state’s actions constitute a violation of their property rights. They argue that the land, acquired in 2006 for road-widening but only taken into possession in July 2024, was undervalued by the BBMP. The royal family’s challenge to the 1996 Act remains pending in the Supreme Court, adding complexity to the dispute. They contend that the state’s attempt to apply a 1996 compensation framework to a 2024 valuation is unjust, especially given Bengaluru’s skyrocketing real estate prices.
The royal family’s position has been bolstered by the Supreme Court’s rulings, which have consistently favored fair compensation based on current market values. The court’s December 2024 order emphasized that the state’s earlier valuation, which treated the land as agricultural, was flawed, given its prime location and historical significance. The royal family’s advocates have also highlighted the state’s delays, noting that possession of the land was taken in 2010, but compensation disputes have persisted for over a decade.
Broader Implications: Urban Development vs. Historical Legacy
The Bengaluru Palace Grounds dispute is more than a legal tussle; it reflects the tension between urban development and the preservation of historical legacy. The land in question, located along Ballari and Jayamahal roads, is critical for easing Bengaluru’s chronic traffic congestion, particularly on routes to the international airport. The BBMP’s road-widening project, initiated in 2006, aimed to decongest these arterial roads, but the state’s decision to drop the acquisition in 2022 and subsequent legal battles have delayed progress. The construction of a new compound wall and the felling of over 50 trees near the Palace Grounds have further complicated the project, drawing criticism from environmentalists and urban planners.
At the same time, the dispute underscores the challenges of compensating historical landowners in a rapidly urbanizing city. Bengaluru’s real estate market has seen exponential growth, with land values in prime areas like the Palace Grounds reaching astronomical figures. The state’s concern about the financial implications of TDR issuance is valid, as it could set a precedent for future acquisitions, straining public resources. However, the royal family’s right to fair compensation cannot be overlooked, especially given the historical and cultural significance of the Palace Grounds.
Political and Social Dimensions
The case has also taken on political overtones. The Karnataka government, led by the Congress party, has faced criticism for its handling of the dispute, with opposition parties accusing it of mismanaging public funds and delaying justice for the royal family. The state’s attempt to assert control through the 2025 ordinance and its subsequent plea in the Supreme Court reflect a broader strategy to balance fiscal responsibility with legal obligations. Meanwhile, the Mysuru royal family, a revered institution in Karnataka, commands significant public sympathy, adding pressure on the government to resolve the issue amicably.
The dispute also highlights Bengaluru’s urban planning challenges. As one of India’s fastest-growing cities, Bengaluru grapples with infrastructure bottlenecks, and the Palace Grounds case exemplifies the complexities of balancing development with heritage preservation. The state’s decision to explore alternative solutions, such as redesigning roads without acquiring additional land, reflects an attempt to address these challenges, but the legal saga continues to cast a shadow over such efforts.
Looking Ahead: A Resolution in Sight?
As the Supreme Court prepares to hear the Karnataka government’s plea on May 27, 2025, the Bengaluru Palace Grounds case remains a pivotal moment in the state’s legal and urban history. The court’s decision will likely clarify whether the 1996 Act or subsequent laws govern the acquisition and whether the TDR valuation based on 2024 market rates is legally sound. For the royal family, the outcome will determine the extent of their compensation and the recognition of their historical rights. For the state, it will shape future land acquisition policies and urban development strategies.
The saga of the Bengaluru Palace Grounds is a reminder of the delicate interplay between history, law, and progress. As Bengaluru continues to evolve into a global metropolis, resolving such disputes will require a nuanced approach that honors the past while addressing the needs of the present. Whether through a landmark judicial ruling or a negotiated settlement, the resolution of this case will leave an indelible mark on Karnataka’s legal and cultural landscape.
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