Karnataka HC Declares Land Acquisition for Real Estate Developers as Daylight Dacoity

The Karnataka High Court has issued a strong rebuke against the state authorities, labeling the acquisition of farmers' land for real estate developers as a 'daylight dacoity.' In a recent judgment, the High Court set aside an order passed by a single judge bench in favor of a private firm, Royal Fragrances Private Limited (RFPL).

The division bench, comprising Justice DK Singh and Justice Tara Vitasta Ganju, made these scathing remarks in their order dated February 27, 2023. The bench was hearing an appeal filed in 2013 by the legal heirs of deceased Patel Jetalal Ramaji and another, challenging the single judge's order dated March 3, 2013, which had been favorable to RFPL.

The court highlighted the Karnataka Industrial Area Development Board’s (KIADB) apparent favoritism towards RFPL. Despite the company's initial request for only 12 acres of land, the KIADB allotted 29 acres and seven and a half guntas. The rapidity with which the KIADB and the state machinery acted to acquire the land for RFPL, bypassing the prescribed procedures, was cited as evidence of malafide intentions and illegality.

The division bench noted that RFPL's application dated August 30, 2001, was approved within just 18 days by the committee. This swift action, they observed, appeared to be stage-managed to facilitate the creation of a land bank for private real estate development at the expense of poor farmers and public interest.

The court emphasized that the acquisition of land in favor of RFPL was a clear violation of the mandatory procedures and a colorable exercise of power. 'The speed with which the land was acquired is a complete mala fide exercise of power and such acquisition cannot be upheld,' the bench stated. They further described the acquisition as a 'daylight dacoity on poor farmers by the state authorities in favor of land sharks.'

The High Court also reiterated that no person can be deprived of their property without due process of law, and even then, the property can only be acquired for a public purpose. The bench concluded by setting aside the impugned order passed by the single judge, effectively overturning the decision in favor of RFPL.

RFPL had previously challenged the state government's decision in 2009 to denotify certain land pieces. However, the High Court's ruling now stands as a significant setback for the company and a victory for the farmers who had been fighting to retain their land.

This judgment is a landmark in the ongoing struggle between land rights and commercial interests, highlighting the judiciary's role in protecting the rights of marginalized communities.