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2025 DAILYLAW 56229 (KAR)

M/S BILIGIRI GRANITES v. STATE OF KARNATAKA

WP/29535/2017 · 2025-12-16

K S Hemalekha

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Judgment text

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- 1 - HC-KAR NC: 2025:KHC:53814 WP No. 29535 of 2017 C/W WP No. 29533 of 2017 WP No. 29534 of 2017 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 16TH DAY OF DECEMBER, 2025 BEFORE THE HON'BLE MRS. JUSTICE K.S. HEMALEKHA WRIT PETITION NO.29535 OF 2017 (LA-KIADB) C/W WRIT PETITION NO.29533 OF 2017 (LA-KIADB) WRIT PETITION NO.29534 OF 2017 (LA-KIADB) IN WP No.29535/2017 BETWEEN: M/S BILIGIRI GRANITES REP. BY ITS PARTNER SRI. ANANTH KUMAR AGED ABOUT 70 YEARS, RESIDING AT BADANAKUPPE VILLAGE, CHAMARAJANAGAR DIST – 571 313. …PETITIONER (BY SMT. LATHASHREE D L., ADVOCATE FOR SRI. D. C. DEEPAK, ADVOCATE) AND: 1. STATE OF KARNATAKA REP. BY ITS PRINCIPAL SECRETARY DEPARTMENT OF COMMERCE & INDUSTRIES, VIKASA SOUDHA, AMBEDKAR VEEDHI, BANGALORE – 560 001. 2. KARNATAKA INDUSTRIAL AREA DEVELOPMENT BOARD, REP. BY ITS CEO, KHANIJA BHAVAN, RACE COURSE ROAD, BANGALORE - 560 001. 3. THE DEVELOPMENT OFFICER KIADB ZONAL OFFICE, Digitally signed by MAHALAKSHMI B M Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:53814 WP No. 29535 of 2017 C/W WP No. 29533 of 2017 WP No. 29534 of 2017 MYSORE ZONE, K.R.S. ROAD, METAGALLI MYSORE – 570 016. …RESPONDENTS (BY SRI. RAJKUMAR M, AGA FOR R1., SRI. B. B. PATIL, ADVOCATE FOR R2 & R3) THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT IN THE NATURE OF CERTIORARI THEREBY QUASHING THE NOTICES BEARING NO.KEKAIPRAAMA / MAI / 4253 / 1097 / 2017-18 DATED 30.06.2017 ISSUED BY THE OFFICE OF 3RD RESPONDENT, VIDE ANNEXURE-A AND ETC, IN WP NO.29533/2017 BETWEEN: M/S B G GRANITES REP. BY ITS PARTNER, SMT. REVATHI, AGED ABOUT 59 YEARS, SY.NO.433/3, NANJANGUD-MYSORE ROAD, BADANAGUPPE VILLAGE, CHAMARAJANAGARA DIST-571 313 ...PETITIONER (BY SMT. LATHASHREE D L., ADVOCATE FOR SRI. D. C. DEEPAK, ADVOCATE) AND: 1. STATE OF KARNATAKA REP. BY ITS PRINCIPAL SECRETARY, DEPARTMENT OF COMMERCE & INDUSTRIES, VIKASA SOUDHA, AMBEDKAR VEEDHI, BANGALORE - 560 001. 2. KARNATAKA INDUSTRIAL AREA DEVELOPMENT BOARD, - 3 - HC-KAR NC: 2025:KHC:53814 WP No. 29535 of 2017 C/W WP No. 29533 of 2017 WP No. 29534 of 2017 REP BY ITS CEO, KHANIJA BHAVAN, RACE COURSE ROAD, BANGALORE - 560 001. 3. THE DEVELOPMENT OFFICER KIADB ZONAL OFFICE, MYSORE ZONE, K.R.S. ROAD, METAGALLI, MYSORE - 570 016. ...RESPONDENTS (BY SRI. RAJKUMAR M, AGA FOR R1., SRI. B. B. PATIL, ADVOCATE FOR R2 & R3) THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT IN THE NATURE OF CERTIORARI THEREBY QUASHING THE NOTICES BEARING NO.KEKAIPRAAMA / MAI / 4254 / 1098 / 2017-18 DATED 30.06.2017 ISSUED BY THE OFFICE OF 3RD RESPONDENT, VIDE ANNEXURE-A AND ETC., IN WP NO. 29534/2017 BETWEEN: M/S SHILPA GRANITES REP. BY ITS PROPRIETOR A. GIRI, S/O ANANTH KUMAR, AGED ABOUT 39 YEARS, SY.NO.435/3, NANJANGUD-MYSORE ROAD, BADANAKUPPE VILLAGE, CHAMARAJANAGAR DIST – 571 313. ...PETITIONER (BY SMT. LATHASHREE D L., ADVOCATE FOR SRI. D. C. DEEPAK, ADVOCATE) AND: 1. STATE OF KARNATAKA REP. BY ITS PRINCIPAL SECRETARY, DEPARTMENT OF COMMERCE & INDUSTRIES, VIKASA SOUDHA, - 4 - HC-KAR NC: 2025:KHC:53814 WP No. 29535 of 2017 C/W WP No. 29533 of 2017 WP No. 29534 of 2017 AMBEDKAR VEEDHI, BANGALORE – 560 001. 2. KARNATAKA INDUSTRIAL AREA DEVELOPMENT BOARD, REP. BY ITS CEO, KHANIJA BHAVAN, RACE COURSE ROAD, BANGALORE – 560 001. 3. THE DEVELOPMENT OFFICER KIADB ZONAL OFFICE, MYSORE ZONE, K.R.S. ROAD, METAGALLI, MYSORE – 570 016. ...RESPONDENTS (BY SRI. RAJKUMAR M, AGA FOR R1., SRI. B. B. PATIL, ADVOCATE FOR R2 & R3) THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT IN THE NATURE OF CERTIORARI THEREBY QUASHING THE NOTICES BEARING NO.KEKAIPRAAMA / MAI / 4251 / 1096 / 2017-18 DATED 30.06.2017 ISSUED BY THE OFFICE OF 3RD RESPONDENT, VIDE ANNEXURE-A AND ETC THESE PETITIONS COMING ON FOR ORDERS THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MRS. JUSTICE K.S. HEMALEKHA ORAL ORDER These writ petitions are filed by similarly placed petitioner questioning the notices/orders dated 30.06.2017 issued by the respondent No. 3 –Karnataka Industrial Area Development Board (‘KIADB’ for short), whereby the - 5 - HC-KAR NC: 2025:KHC:53814 WP No. 29535 of 2017 C/W WP No. 29533 of 2017 WP No. 29534 of 2017 allotments of industrial land made in favour of the petitioners were cancelled, and seeking a consequential direction to consider their representation for allotment in accordance with law. 2. Since the facts, issues and reliefs sought are common, the impugned action arises out of the same industrial area and allotment process, the writ petitions are heard together and disposed of by this common order. Brief facts 3. The petitioners are running existing granite units at Badanakuppe Village for several decades. For the formation of Badanaguppe-Kellamballi Industrial Area, the acquisition proceedings were issued under the Karnataka Industrial Areas Development Act, 1966 (‘KIAD Act’ for short). The petitioners' existing factory lands were initially included but later dropped from acquisition considering the running industries. After formation of the industrial layout, uneven shaped excess land abutting the petitioners - 6 - HC-KAR NC: 2025:KHC:53814 WP No. 29535 of 2017 C/W WP No. 29533 of 2017 WP No. 29534 of 2017 existing factories were allotted to them by allotment letters dated 23.06.2015. The petitioners deposited 20% of the tentative costs and made representations seeking waiver of development charges, relying upon the internal recommendations/office notes. Thereafter, demands were raised calling upon the petitioners to pay additional amounts towards the development charges, and eventually by notices dated 30.06.2017, the allotments were cancelled. 4. Learned counsel for the petitioners submits that the impugned cancellation orders are arbitrary, unilateral and non speaking orders. The authorities failed to consider the representations submitted by the petitioners, particularly Annexures D and G. The land allotted being uneven excess land abutting existing factories, no development was required and therefore levy of development charges is unjustified. The cancellation has been effected without application of mind and in violation of principles of natural justice. - 7 - HC-KAR NC: 2025:KHC:53814 WP No. 29535 of 2017 C/W WP No. 29533 of 2017 WP No. 29534 of 2017 5. Learned counsel for the respondents 2 and 3- KIADB contends that the writ petitions are not maintainable and are devoid of merits. The allotments were subject to payment of pro-rata acquisition and development costs, uniformly applicable to all allottees. The internal recommendation or office notes do not confer any enforceable right. Since the petitioners failed to comply with the payment demands despite extension of time, the cancellation is strictly in accordance with the Rules and grant of waiver. 6. This Court has considered the rival contentions and perused the material on record. 7. The controversy essentially revolves around the consideration of the petitioners representation seeking waiver/modification of the development charges. The impugned orders dated 30.06.2017 do not disclose that the representation of the petitioners have been examined in detail, nor do they indicate consideration of the circumstances under which the original allotments were - 8 - HC-KAR NC: 2025:KHC:53814 WP No. 29535 of 2017 C/W WP No. 29533 of 2017 WP No. 29534 of 2017 made. At the same time this Court without expressing any opinion on the merits of the rival claims, including entitlement to waive of development charges or otherwise deems it fit that ends of justice would be met if the competent authority is directed to reconsider the representation in accordance with law, keeping in view the treatment accorded to similarly placed persons. Accordingly, this Court pass the following : ORDER (i) The Writ Petitions are allowed in part. (ii) The impugned notices dated 30.06.2017 issued by the respondent no. 3 are hereby quashed. (iii) The respondents 2 and 3-KIADB shall consider the petitioners representation at Annexures- D and G in accordance with law keeping in view the objections raised, the - 9 - HC-KAR NC: 2025:KHC:53814 WP No. 29535 of 2017 C/W WP No. 29533 of 2017 WP No. 29534 of 2017 statutory scheme and the case of similarly placed persons and connected matters. (iv) All the contentions of both the parties are kept open. (v) No opinion is expressed on the merits or demerits of the claim for waiver of development charges. Sd/- ___________________ JUSTICE K.S. HEMALEKHA CKL List No.: 1 Sl No.: 75