Karnataka HC Quashes KIADB Cash Award, Lets Landowners Apply For 10,781 Sq Ft Per Acre In Developed Land In Lieu Of Cash

The petitioners claimed ownership of 1 acre 20 guntas in Sy. No. 42/1 at Pemmanahalli Village, acquired under the Karnataka Industrial Areas Development Act, 1966 (KIAD Act), following notifications under Section 28(1) in 2006 and 2007.

The Special Land Acquisition Officer passed a general award on 21 December 2016 and deposited compensation before the competent court.

The petitioners sought to quash the award and obtain developed land in lieu of monetary compensation, relying on a Government Order dated 23 February 2021 providing for allotment of 10,781 sq. ft. of developed land per acre.

They also referred to a similar order in W.P. No. 3655/2026.

The KIADB did not dispute the Government Order and stated that it would consider an appropriate representation.

Section 28(1) of the KIAD Act provides the statutory basis for notifying land for acquisition for industrial development, while Section 29(2) concerns an award by consent.

The Government Order dated 23 February 2021, as described to the Court, provides for allotment of 10,781 sq. ft. of developed industrial land per acre in lieu of monetary compensation.

The Court did not set out a separate interpretation of these provisions or the Government Order; it directed that the KIADB consider a representation in accordance with law.

The petitioners challenged the general award and sought the developed-land option under the Government Order.

The KIADB did not dispute that the Government Order provided for such an option, but submitted that it would consider an appropriate representation.

On that basis, the Court quashed the existing award and provided a procedure for the petitioners to seek a consent award, rather than directing the KIADB to allot developed land outright.

The Court also preserved the respondents’ ability to act according to law if no consensus was reached or objections remained, subject to prior notice to the petitioners.

The petitioners were given 30 days from receipt of the certified copy to submit a representation consenting to an award in exchange for 10,781 sq. ft. of developed land per acre.

The KIADB must consider the representation within eight weeks of its submission.

The KIADB may withdraw any amount deposited before the Civil Court pursuant to the quashed award.

If no agreement is reached or objections remain unresolved, the respondents may take action in accordance with law, but only after notifying the petitioners.