Palace Land row: Karnataka issues ordinance to avoid paying over Rs 3,000 crore for road widening
The ordinance comes in the wake of a Supreme Court order in December last year to provide transferable development rights (TDR) to the erstwhile Mysuru royal family for 15 acres and 17 guntas of land sought to widen Ballari and Jayamahal Roads.

The Karnataka government on Wednesday notified the Bangalore Palace (Utilization and Regulation of Land) Ordinance 2025, reserving the right to not acquire portions of the disputed Palace land located in the heart of the city. The ordinance is expected to jeopardise proposals to widen two major roads—Ballari Road and Jayamahal Road.
The ordinance came in the wake of a Supreme Court decision in December last year ordering the government to provide the erstwhile Mysuru royal family with transferable development rights (TDR) for 15 acres and 17 guntas of land sought to widen the two roads to reduce traffic congestion. The judgment estimated TDR for the land to be worth Rs 3,011 crore, as per the prevailing guidance value.
The ordinance said the “financial effect of the judgement of the Hon’ble Supreme Court will be grave on the exchequer of the state of Karnataka, and upon the urban planning of the city of Bengaluru”.
The Bangalore Palace (Acquisition and Transfer) Act 1996, which empowered the state government to acquire portions of the palace land for infrastructure development, had valued the entire land of 472 acres and 16 guntas at Rs 11 crore. Though the Act, enacted almost three decades ago, was upheld by the Karnataka High Court, its constitutional validity remains challenged in the Supreme Court.
Following the December 2024 order, the Karnataka cabinet, in meetings held earlier this month, decided to file an application in the apex court seeking an early hearing of the petition over the 1996 Act. After a cabinet meeting on January 24, held specifically to discuss the matter, Law and Parliamentary Affairs Minister H K Patil said the government has dropped plans to issue TDR for Palace Grounds land.
The ordinance also empowers the government to acquire the land if required, but the compensation will be as per the 1996 Act.