- 1 - HC-KAR NC: 2026:KHC:29758 WP No. 40934 of 2019 C/W WP No. 9119 of 2018 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 16TH DAY OF JUNE, 2026 BEFORE THE HON'BLE MR. JUSTICE M.G.S. KAMAL WRIT PETITION NO. 40934 OF 2019 (GM-KIADB) C/W WRIT PETITION NO. 9119 OF 2018 (GM-KIADB) IN WP No. 40934/2019 BETWEEN: M/S IN-COM NO.31, VIDYANAGAR, 1ST MAIN, T. DASARAHALLI, BENGALURU-560 057. REP BY ITS PROPRIETOR: SRI GURUSHANTHAPPA AGED ABOUT 64 YEARS, S/O. LATE VENKATAPPA, NO.269, MEI LAYOUT, BAGALAKUNTE, BENGALURU-560 073. …PETITIONER (BY SRI. SEETHA RAMA RAO B C & .,ADVOCATE) AND: 1. THE CHAIRMAN KARNATAKA INDUSTRIAL AREAS DEVELOPMENT BOARD, 4TH FLOOR, KHANIJABHAVAN, Digitally signed by SUMA B N Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:29758 WP No. 40934 of 2019 C/W WP No. 9119 of 2018 RACE COURSE ROAD, BENGALURU-560 001. 2. THE CHIEF EXECUTIVE OFFICER & EXECUTIVE MEMBER KARNATAKA INDUSTRIAL AREAS DEVELOPMENT BOARD, 4TH FLOOR, KHANIJA BHAVAN, RACE COURSE ROAD, BENGALURU-560 001. 3. THE SECRETARY-2 KARNATAKA INDUSTRIAL AREAS DEVELOPMENT BOARD, 4TH FLOOR, KHANIJA BHAVAN, RACE COURSE ROAD, BENGALURU-560 001. 4. THE PRINCIPAL SECRETARY URBAN DEVELOPMENT DEPARTMENT, GOVERNMENT OF KARNATAKA, VIDHANA SOUDHA, BENGALURU-560 001. …RESPONDENTS (BY SRI. K.B. MONESH KUMAR., ADVOCATE FOR R1 AND R2 SRI. SRINIVAS KUMAR, HCGP FOR R3 AND R4) THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE IMPUGNED ORDER DATED 17/21.11.2017 ISSUED BY R-2 PRODUCED AS ANNEXURE-J AND LETTER DATED 22/23.11.2017 AS PER ANNEXURE-H ISSUED BY R-3; LETTER DATED 23.05.2014 AS PER ANENXURE-C ISSUED BY R-3; NOTICE DATED 01.06.2017 AS PER ANNEXURE-F ISSUED BY R-3;QUASH TEH LETTER DATED 30.05.2018 PRODUCED AS PER ANNEXURE- ISSUED BY R-3 AND ETC. - 3 - HC-KAR NC: 2026:KHC:29758 WP No. 40934 of 2019 C/W WP No. 9119 of 2018 IN WP NO. 9119/2018 BETWEEN: M/S IN-COM NO.31, VIDYANAGAR 1ST MAIN, T DASARAHALLI BENGALURU-560 057. REPRESENTED BY ITS PROPRIETOR SRI. V. GURUSHANTHAPPA S/O LATE SRI VENKATAPPA AGED ABOUT 62 YEARS. ...PETITIONER (BY SRI. B C SEETHARAMA RAO (NOC).,ADVOCATE) AND: 1. THE PRINCPLE SECRETARY URBAN DEVELOPMENT DEPARTMENT, GOVERNMENT OF KARNATAKA VIDHANA SOUDHA BENGALURU-560 001. 2. THE CHAIRMAN KARNATAKA INDUSTRIAL AREAS DEVELOPMENT BOARD KHANIJA BHAVANA, 4TH FLOOR, RACE COURSE ROAD, BENGALURU-560 001. - 4 - HC-KAR NC: 2026:KHC:29758 WP No. 40934 of 2019 C/W WP No. 9119 of 2018 3. THE CHIEF EXECUTIVE OFFICER & EXECUTIVE MEMBER KARNATAKA INDUSTRIAL AREAS DEVELOPMENT BOARD KHANIJA BHAVANA 4TH FLOOR RACE COURSE ROAD BENGALURU-560 001. 4. THE SECRETARY-2 KARNATAKA INDUSTRIAL AREAS DEVELOPMENT BOARD HEAD OFFICE, KHANIJA BHAVANA 4TH FLOOR, RACE COURSE ROAD BENGALURU-560 001. ...RESPONDENTS (BY SRI. SRINIVAS KUMAR, HCGP FOR R1; SRI. K.B. MONESH KUMAR., ADVOCATE FOR R2 TO R4) THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA, PRAYING TO CALL FOR LCR AND ALLOW THE PETITION;QUASH THE IMPUGNED ORDER PASSED BY THE R-3 ON DATED 17.11.2017 VIDE ANNEX-L, IN RESPECT OF PAYMENT IS CONCERN;MODIFY THE IMPUGNED ORDER PASSED BY THE R-3 ON DATED 17.11.2017 VIDE ANNEX-L, IN RESPECT OF PAYMENT IS CONCERN AND ETC. THESE PETITIONS, COMING ON FOR FURTHER HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: - 5 - HC-KAR NC: 2026:KHC:29758 WP No. 40934 of 2019 C/W WP No. 9119 of 2018 ORAL ORDER 1. Petitioner was allotted an industrial plot bearing No.75 in Sompura I Stage Industrial Area, near Nelamangala during the year 2008. Possession was delivered during the year 2010. Lease-cum-sale agreement was executed in the year 2011. Petitioner has paid the tentative cost of the plot at Rs.56,95,958/-. 2. The respondent-KIADB issued a Communication dated 22.11.2017, in terms of which, the respondent-authorities have sought to revise the price of the plot at Rs.150 Lakhs per acre and have also initiated proceedings under Section 34B of the Karnataka Industrial Areas Development Act, 1966 demanding the petitioner to deposit a sum of Rs.76,12,597/- and Rs.16,76,765/- towards difference in the cost of land along with applicable interest. Being aggrieved petitioner is before this Court. 3. Learned counsel for the petitioner submits that the demand for payment of differential cost of the plot with interest thereon by the respondent-KIADB is arbitrary and illegal as the said fixation of cost of the plot at Rs.150 lakhs per acre is not - 6 - HC-KAR NC: 2026:KHC:29758 WP No. 40934 of 2019 C/W WP No. 9119 of 2018 applicable to the petitioner. Hence, seeks for allowing of the petition. 4. In response, learned counsel appearing for the respondent-KIADB furnishing a copy of the proceedings of the 324th KIAD Board meeting held on 27.06.2013 as well as the official memorandum dated 10.07.2020, submits that the tentative cost of the land was revised and fixed at Rs.150 lakhs per acre, which the petitioner is required to pay. He submits even the recital in the lease-cum-sale agreement would indicate payment of Rs.56,95,958/- was only tentative rate which was to be revised and fixed taking into consideration of several factors. Thus the said tentative rate has been revised in terms of the 324th KIADB Board Meeting. 5. Heard and perused the records. 6. There is no dispute of the fact that the petitioner was indeed allotted with the plot and he had paid tentative cost of Rs.56,95,958/-. The controversy seemed to have arose on account of purported fixation of revised rate. Perusal of extracts of the 324th KIAD Board Meeting held on 27.06.2013 indicate the following: - 7 - HC-KAR NC: 2026:KHC:29758 WP No. 40934 of 2019 C/W WP No. 9119 of 2018 ''EXTRACT OF THE PROCEEDINGS OF 324th KIAD BOARD MEETING HELD ΟΝ 27-06-2013 SUBJECT NO.22 324th meeting dt. 27-6-2013 File No. COF Sec. Revision of tentative allotment rates of land in Sompura 1st & 2nd Stage Indl. Areas, Nelamangala Taluk, Bangalore Rural District. -oOo- The matter was considered in detail. After detailed deliberations, it was resolved that: 1. Approval be accorded for reducing the tentative allotment rates in respect of allotments made at Sompura I Stage Indl. Area and also for the units shifted to Sompura II Stage Indl. Area as detailed below: (Rs.in lakhs) SL.No Tentative allotment rate fixed per acre Revised allotment rate fixed per acre communi- cated Reduced allotment rate fixed per acre I 57.00 80.00 73.82 (including pro-rate cost of water supply scheme @ Rs.8.60 lakhs per acre) II 70.00 85.00 78.82 (including pro-rate cost of water supply scheme @ Rs.8.60 lakhs per acre) 2. Approval be accorded for fixing the tentative allotment rate at Rs.150 lakhs per acre in respect of the balance allotable land in Sompura I & II Stage Industrial Areas, which includes pro- - 8 - HC-KAR NC: 2026:KHC:29758 WP No. 40934 of 2019 C/W WP No. 9119 of 2018 rata cost of water supply scheme @ Rs.8.60 lakhs per acre and that the said tentative allotment rate be made applicable for all fresh allotments, restoration of allotments due to cancellation and also for transfer of lease hold rights cases. It was further resolved that the allottees of Sompura I Stage and the units shifted to Sompura II Stage Indl. Area be permitted to implement their projects after executing necessary documents with the Board and that the difference in cost of land be collected in two quarterly equal installments.'' 7. Thus, as seen at Sl.No.I tentative allotment rate which was fixed at Rs.57.00 lakhs per acre was revised to Rs.80.00 lakhs was further reduced to Rs.73.82 lakhs including pro-rata cost of water supply scheme at Rs.8.60 lakhs per acre. Similarly, as seen at Sl.No.II, tentative allotment rate at Rs.70.00 lakhs per acre was revised to Rs.85.00 lakhs and thereafter reduced to Rs.78.82 lakhs. Paragraph No.2 of the aforesaid proceedings further indicate that approval was accorded in the meeting to fix tentative allotment rate at Rs.150 lakhs per acre in respect of ''balance allotable land in Sompura I and II Stage Industrial Areas''. 8. The aforesaid proceedings leaves no doubt, that the proposal for fixation of the tentative allotment rate at Rs.150 lakhs per acre was applicable only in respect of allotment to be made on and after 324th meeting held on 27.06.2013 and not - 9 - HC-KAR NC: 2026:KHC:29758 WP No. 40934 of 2019 C/W WP No. 9119 of 2018 prior to that. This stands further clarified by the contents of Official Memorandum dated 10.07.2020 which reads as under: ''Official Memorandum Sub: Determination of final price of Sompura 1st and 2nd Phase Industrial Area, Bengaluru Rural District. Ref: 1. Approval from Govt. in C&I Department on 13.05.2020. 2. 365th KIAD Board Meeting held on 19.06.2020. 1. KIADB Board in its 365th Meeting held on 19.06.2020 decided to determine the final price in respect of allotments made in Sompura 1st and 2nd Phase Industrial Area, Bengaluru Rural District as detailed below: Sl.No. Tentative Cost of Allotment per acre (Rs. in lakhs) Final Price Fixed per Acre including prorata cost of water supply @Rs.14.50 lakhs per acre (Rs. in lakhs) 1. Land Sharing Scheme NIL 2. 31.73 (Reconveyed land) 54.00 3. 73.80 110.00 4. 78.82 120.00 5. 150.00 185.00 2. The actual cost of land applicable for transfer of lease hold rights of land in respect of units taken over under Sec.29 of the SFC's Act at Sompura 1st & 2nd Phase Industrial Area, Bengaluru Rural District is fixed at Rs.128.50 lakhs per acre including prorata cost of water supply. 3. The tentative allotment rate of Sompura 1st & 2nd Phase Industrial Area, Bengaluru Rural District is revised from Rs.150 lakhs per acre to Rs.185 lakhs per acre which will be applicable in respect of fresh allotments of plots, transfer of lease hold rights and re-allotment of plots on account of surrender/cancellation of allotment. All the concerned officers shall give effect to the revised allotment rate w.e.f. 13.05.2020 and to intimate to all the allottees for payment of final price fixed by the Board.'' - 10 - HC-KAR NC: 2026:KHC:29758 WP No. 40934 of 2019 C/W WP No. 9119 of 2018 9. Perusal of the aforesaid Official Memorandum indicate that the rates were revised and fixed at Rs.128.50 lakhs per acre in respect of the units which were taken over under Section 29 of the State Financial Corporations Act, 1951 at Sompura I and II Stages Industrial Area, which is not the case at hand. Therefore said fixation of rate is not applicable. Similarly, revised rate of Rs.150 lakhs per acre to Rs.185 lakhs per acre is proposed to be made applicable in respect of fresh allotment of plots. 10. In view of the aforesaid documents furnished by the respondent-KIADB, there is considerable force in the submission being made by learned counsel for the petitioner, in that, what is applicable to the petitioner is the revised rates that were fixed and were prevalent prior to the 324th meeting dated 27.06.2013. In other words, it is only reduced rate of Rs.73.82 lakhs per acre including pro-rata cost of water supply scheme at Rs.8.60 lakhs per acre in respect of the plots which were fixed at Rs.57.00 lakhs and at Rs.78.82 lakhs including pro-rata cost of water supply at Rs.8.60 lakhs per acre in respect of the tentative allotment of rate which are fixed is Rs.70.00 lakhs. - 11 - HC-KAR NC: 2026:KHC:29758 WP No. 40934 of 2019 C/W WP No. 9119 of 2018 11. The question raised above in this petition, thus stands answered. Accordingly, following: ORDER (i). Petition is disposed of. (ii). Consequently, Order dated 22.11.2017 at Annexure-H and order dated 17/21.11.2017 at Annexure-J stands quashed. (iii). Respondent-KIADB shall raise the invoice as per the tentative rate fixed vide 324th meeting as noted above, within 15 days from the date of receipt of certified copy of this order, petitioner shall comply with the same within two months thereafter. (iv). It is made clear if the amounts as directed above are not paid, respondent-Authority is at liberty to take such action as permitted under law. (v). In view of the relief granted in W.P.No.40934/2019, W.P.No.9119/2018 does not survive for consideration. SD/- (M.G.S. KAMAL) JUDGE RL List No.: 1 Sl No.: 19