KIADB blamed for land misuse

Absolute sale deed was issued instead of a conditional one

The district administration inspected the land and building by Prestige at Pattandur Agrahara in Bengaluru in May this year.— file photo

The inquiry by the Revenue Secretary into the sale of a land parcel in Pattandur Agrahara has blamed the action of Karnataka Industrial Area Development Board (KIADB) as having resulted in the misuse of the plot.

Holding the KIADB responsible, the report pointed out that the Board should not have executed an absolute sale deed, and should instead have executed a conditional sale deed. The State government had granted this land under Rule 20 (1) C of the Karnataka Land Grant Rules, 1969, for allotment to Joy Ice Cream for development of software park and serviced apartment, and not under Rule 20 (1) D.

“It is unfortunate that the KIADB ventured upon to execute an absolute sale deed,” the report said, adding that execution of absolute sale deed was also in violation of land grant rules and conditions.

Inquiry

The inquiry also raised issues on how the development plan for taking up the housing project had been sanctioned.

Even after the Bangalore Development Authority (BDA) informed the Prestige Estates Projects that a No Objection Certificate (NOC) is required from KIADB, Joy Ice Cream, which had already sold the land, approached the KIADB for an NOC.

The KIADB, despite knowing that the land in question was allotted to the entrepreneur (Joy Ice Cream) for a software park and it had to be returned if it was not required for the purpose, told Joy Ice Cream to approach the BDA for change in land use and other allied matters. The report noted that though the KIADB had not issued an NOC, the BDA issued work order to Prestige in 2010.

While the KIADB executed the absolute sale deed on July 21, 2006 in favour of Joy Ice Cream, the land was sold to Prestige Estates Projects on August 30, 2006. The report said that even before Joy got the land, it had entered into agreement of sale with Wildflowers Estates and Projects, and later jointly sold the plot to Prestige Estates Projects. This revealed that Joy Ice Cream had no intention of establishing a software park and serviced apartment on its own, and had got land grants by misrepresentation of facts.

Meanwhile, Prestige Estates Projects has claimed before the High Court that it has invested nearly Rs. 300 crore into the project and has also taken loans to a tune of Rs. 150 crore from financial institutions. The company has also entered into sales agreements with about 25 persons, who have all availed financial assistance from banks.