The Congress government in Karnataka which introduced an ordinance on January 29 to overcome the prospect of paying compensation to the tune of Rs 3,000 crore to the erstwhile royal family of Mysore – for the acquisition of 15.35 acre of land at the Bangalore Palace – is weighing new legal options after the Supreme Court indicated on February 13 that its December 10, 2024, order to pay Transferable Development Rights (TDR) at market value is not negotiable.“We have discussed this subject and it was an elaborate discussion. We will have discussions with some legal luminaries also and we will be taking a decision after we discuss with Delhi lawyers and the advocate general,” Law Minister H K Patil said on February 20 after the Palace issue featured at the state cabinet meeting chaired by Chief Minister Siddaramaiah.“There is no setback here because we have our own position. We are trying to safeguard the interest of the state and the property of the state and we have already stated in great detail that the cost under discussion of somewhere around Rs 3,000 crore is not acceptable and we have now introduced the ordinance keeping all this in view,” the law minister said.The Karnataka government is likely to file an appeal against the SC order of December 10, 2024, to pay the compensation, and imposition of a fine, in the course of contempt of court petitions filed by the members of the erstwhile Mysore royal family.The Karnataka government was directed by the Supreme Court on December 10, 2024, to pay compensation in the form of Transferable Development Rights at the prevailing market value to the royal family as agreed by the state and ordered by the SC in November 2014 for the acquisition of a 15.36-acre portion – out of the 472 acres of the disputed Bangalore Palace property – for a road-widening project.The Supreme Court order came in the wake of contempt of court petitions filed by the erstwhile Maharaja of Mysore, the now deceased Srikantadatta Wadiyar, his wife Pramoda Devi Wadiyar, and others, over the delay in the payment of compensation by the state.With the market value of the land sought to be acquired for road work assessed to be in the range of Rs 3,014 crore at present, the Congress government in Karnataka introduced an ordinance on January 29 to withdraw the TDR offer for the Bangalore Palace land.Story continues below this adThe Supreme Court, however, rejected the Karnataka government’s effort to counter the compensation payment with the ordinance and indicated on February 13 that the December 10, 2024, order by a three-judge bench in the contempt pleas is not negotiable.“The physical presence of the alleged contemnors is required. Therefore, they are directed to be physically present before this Court on the next date of hearing,” the SC stated in an order on February 13 when the matter came up for assessing compliance by the Karnataka government.Earlier on December 10, 2024, the Supreme Court had directed the state authorities “to issue the TDR as per the value” agreed upon earlier “within six weeks”.“The directions issued under orders dated: 21.11.2014 and 17.05.2022 shall be complied by the competent authority of BBMP keeping in mind the observations made hereinabove within six weeks from today and compliance affidavit shall be filed within the said period failing which the Commissioner, BBMP and the competent authority for issuance of TDR shall appear in person before this Court for having failed to comply with the orders of this Court, to enable this Court to pass further orders,” the SC said in its December 2024 order.Story continues below this adFaced with the prospect of having to pay a compensation of Rs 3,014 crore in the form of TDR to the erstwhile royals, the Congress government introduced an ordinance on January 29, 2024, to withdraw the TDR offer for the acquisition of the Palace land.The ordinance states that 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 grounds spread over 472 acres of land was acquired by the Karnataka government through the passage of the Mysore Palace Transfer and Acquisition Act of 1996 which received the assent of the President and came into force on November 18, 1996. The state was to pay Rs 11 crore as compensation for the entire land at the rate of Rs 2.30 lakh per acre.However, the acquisition by the state has remained in limbo since the royal family challenged the validity of the acquisition law in the Supreme Court after the Karnataka HC upheld the law on March 31, 1997.Story continues below this adSubsequently, the Karnataka government acquired 15.36 acres of the palace land for widening of the Jayamahal Road and the Palace Road over a stretch of two km and a TDR compensation provision was provided.The TDR that has to be paid to the royal family for the acquisition of 15.36 acres of land or 13,91,742 sq ft of land at the prevailing guidance value of Rs 2.70 lakh per sq metre would amount to Rs 200 crore for every acre and a total of Rs 3,014 crore, the law minister said last month.“Once TDR is paid it cannot be regained. It would affect the state’s economy. We have decided not to pay the TDR. Since it is under litigation there are a lot of complications. The ordinance will empower us to keep control over the land. The appropriate decision on compensation will be taken at the right time,” the law minister said last month.While the Bangalore Palace (Acquisition and Transfer) Act 1996, empowered the state government to acquire portions of the palace land for infrastructure development, the new Ordinance reserves the right of the state to not acquire portions of the Palace land for any project. The value of the land in the Ordinance is based on estimates made in the 1996 Act.