Karnataka HC Quashes KIADB Compensation Award, Lets Landowner Seek Developed Land At 10,781 Sq Ft Per Acre

The petitioner claimed ownership of 36 guntas in Sy. No. 251 (old Sy. No. 113), Rampur Village, which was acquired under notifications issued pursuant to Section 28(1) of the Karnataka Industrial Areas Development Act, 1966 (“KIAD Act”).

After a dispute concerning the land arose, the Special Land Acquisition Officer passed a general award dated 12 July 2021 and deposited the compensation before the competent court; the petitioner contended that the award did not account for the option of developed land in lieu of monetary compensation.

He sought to have the award quashed and to be considered for a consent award under Section 29(2) of the KIAD Act, relying on a Government Order dated 23 February 2021 providing for allotment of 10,781 sq. ft. of developed land per acre.

The KIADB’s counsel did not dispute the Government Order and stated that an appropriate representation would be considered in accordance with law.

Section 28(1) of the KIAD Act provides the statutory basis for notification of land for acquisition, while Section 29(2) was invoked in relation to a consent award.

The Government Order dated 23 February 2021 provided for allotment of 10,781 sq. ft. of developed industrial land per acre in lieu of monetary compensation; the respondents did not dispute that order.

The Court also noted the petitioner’s reliance on a coordinate Bench’s order in W.P. No. 3655 of 2026, which had considered a request for developed land in lieu of compensation.

The Court considered the petitioner’s claim that the general award had been made after a dispute arose over the acquired land, notwithstanding his request to be considered for a consent award and the applicable Government Order.

Since the KIADB did not dispute the Government Order and stated that it would consider an appropriate representation, the Court quashed the general award and allowed the petitioner to seek consideration through a fresh representation.

The Court left the ultimate decision to the KIADB, subject to consideration in accordance with law and notice to the petitioner if consensus could not be reached or objections remained unresolved.

The petitioner was granted 30 days from receipt of the certified order to submit a representation consenting to an award and agreeing to receive 10,781 sq. ft. of developed land per acre in lieu of monetary compensation; the KIADB must consider it within eight weeks of submission.

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

If no consensus is reached or objections remain unresolved, the respondents must take appropriate action in accordance with law, after notifying the petitioner.