New Delhi: In a landmark ruling with far-reaching political and legal consequences, the Supreme Court on May 22 ordered the Karnataka government to immediately hand over Rs 3,400 crore worth of Transferable Development Rights (TDR) to the Mysore royal family as compensation for over 15 acres of land acquired from the iconic Palace Grounds for road expansion in Bengaluru.
The verdict marks a decisive victory for the legal heirs of the erstwhile Wodeyar dynasty after decades of dispute and simultaneously delivers a stinging rebuke to the state government’s recent legislative maneuvers that critics claim was aimed at denying the royal family its lawful dues.
The ruling was passed by a bench of Justices MM Sundaresh and Arvind Kumar, who had earlier instructed the Karnataka government to deposit the TDR with the court. The state complied, placing TDR certificates valued at Rs 3,400 crore in the Supreme Court’s custody, but had filed an interim plea urging the court not to release them to the royal family.
That request was emphatically dismissed, with the court making it clear that legal obligations under the Karnataka Stamp Act and past judgments must be honoured. The land in question—15.36 acres—was taken for the widening of Bellary Road and Jayamahal Road, both arterial routes that pass through the historically significant Palace Grounds.
The court, in its December order, had explicitly stated that compensation must be calculated using the guideline value of surrounding areas, as per Section 45B of the Karnataka Stamp Act. This effectively nullified the government’s argument that the earlier Rs 11 crore compensation paid in 1996 sufficed.
Government’s Ordinance Tactics Backfire
In a controversial move, the Karnataka government had recently introduced the Bengaluru Palace (Land Acquisition and Control) Amendment Bill, 2025, which was swiftly approved by Governor Thawar Chand Gehlot. The bill aimed to retain government control over Palace Grounds and retroactively validate its 1996 compensation payout—essentially limiting further financial liability.
Legal experts, however, pointed out that the move appeared tailor-made to undermine the Supreme Court’s directions and deny the royal family their rightful TDR entitlement. “This bill is not only a legislative overreach but a direct assault on the spirit of judicial independence,” a senior legal analyst told this publication.
The amendment stated that if compensation had already been paid in accordance with any prior order or judgment, it need not be paid again—a provision that clearly aimed to cap the compensation at the original Rs 11 crore, despite the current market valuation running into thousands of crores.
The Supreme Court, while reserving its final verdict on the legality of the bill, made it clear that existing judicial orders would prevail until overturned by a constitutional bench or future review.
Palace Grounds: A Contentious Legacy
Covering over 472 acres and 16 guntas, the Palace Grounds have long been a source of legal friction between the state and the descendants of the Wodeyar family. While the area remains an iconic cultural landmark, successive governments have eyed it for infrastructural expansion and public events, often sidelining the property’s original custodians.
In this instance, more than 15 acres were acquired for infrastructure development without due and fair compensation, prompting the royal family to move contempt petitions in the Supreme Court. The court sided with the petitioners, acknowledging both the legality of their claim and the state’s attempt to circumvent it.
“This is a classic case of trying to rewrite history to escape responsibility,” said R. Ashoka, Leader of the Opposition. “The government has not only disrespected a historic institution like the Wodeyar family, but has also undermined the Supreme Court’s authority.”
Even within legal circles, the government’s defence is being viewed with scepticism. “You cannot use legislation to erase financial obligations arising from court judgments,” said a senior advocate.
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