A massive land misuse controversy has erupted in Karnataka after it came to light that government-allotted land sanctioned to Kirloskar Electrical Company in Hubballi for industrial purposes was allegedly converted to residential use—without securing mandatory approvals from the Hubballi-Dharwad Urban Development Authority (HDUDA) or the state government. The revelations raise questions about official complicity, regulatory inaction, and potential high-level corruption.
Documents show that the land, originally granted in 1965 to promote industrial activity and generate employment, has now been used for real estate development. Of the 89 acres and 23 guntas allotted in Raynal village of Hubballi taluk, at least 31 acres and 24 guntas were converted to residential purposes. Moreover, around 29 acres and 20 guntas have reportedly been sold to private developers—Marvel Properties and Asmacom Infra Projects Pvt Ltd—allegedly violating original lease terms and state regulations.
In a November 20, 2024 letter, the HDUDA Commissioner explicitly informed the Urban Development Department that the company submitted no documents to justify or legalize the land use change. The commissioner’s report categorically stated that the authority had not permitted this shift from industrial to residential use.
The government’s inaction has raised further concerns, even as multiple departments—Urban Development, Revenue, and the Dharwad district administration—have flagged the violation. In a separate report submitted in July 2022, the Dharwad deputy commissioner concluded that the company violated lease conditions and recommended that the government reclaim the land.
Despite these findings, no concrete action has been taken yet, prompting criticism that the state government is dragging its feet. A recent letter by the Principal Secretary of the Revenue Department to the Law Department, dated March 19, 2025, also points to the seriousness of the allegations and the need for legal clarity. This was in response to a complaint filed by former BJP minister Shankar Patil Munenakoppa, who accused the company and HDUDA officials of aiding illegal transactions and violating public trust.
The land in question was originally part of a 1965 grant when the government acquired agricultural land from 11 farmers to provide Kirloskar Electrical Company with land to establish an industrial unit. The grant included a strict condition: the land could not be alienated for 15 years, and any future change required payment and fresh permissions. However, even after 15 years, the company has not completed the payment process or followed the due legal procedure for land-use change.
Interestingly, the company approached the HDUDA in 2015 requesting a land-use change of 20 out of 80+ acres. While initial approval was granted, the company converted and sold larger portions without submitting development plans or obtaining further permissions. Later, when the government issued a notice citing lease violations, the company challenged the move in the Karnataka High Court (WP No. 106705/2019). The High Court dismissed the petition, clarifying that development permission does not equate to land conversion approval and that proper consent from the competent authority is mandatory for the sale or change of land use.
Further complicating the matter, the deputy commissioner had written to the government in 2017, urging it to issue orders in light of multiple violations. The state responded by directing HDUDA and the district administration to investigate. The Revenue Department has since noted in its internal comments that the matter appears “serious.”
While the developers claim no conditions were violated, district officials have rejected their defence. The Dharwad Collector specifically noted that the sale and proposed layout plans violated conditions under the Land Reforms Act and Urban Land Ceiling norms.
The issue has sparked political outrage. Critics allege that the ruling Congress government is deliberately stalling enforcement to protect vested interests. “This is nothing but loot of public land under the garb of development,” opposition leaders have said.
Given the scale of the land misappropriation, concerns are mounting that the rest of the property—nearly 50 acres—is also at risk. The Regional Commissioner has recommended that all land in Survey Nos. The state immediately repossesses 88/B and 89.
