Archive · 5 Jun 2025
Karnataka High Court: Land Allotment Price Can't Be Reduced
Imagine you bought land at a certain price.
Later, you found out that other companies in the same area got the land cheaper.
You asked the court to lower your price too.
The court said, no, you can't get a discount just because the price changed later.
The court explained that the government decides the land prices, and they can't change your price just because you are losing money.
The court also pointed out that the other companies were involved in business logistics and were on a different footing.
It's like saying prices can change, but you still have to pay the original agreed price.
The Karnataka High Court ruled that land allottees cannot seek reduced rates after the allotment.
Hadee Forging Private Limited sought a price reduction after learning of lower rates given to other companies.
The company was allotted land at Rs 1.4 crore per acre by KIADB.
Two other companies in the same area received land at a lower price of Rs 88 lakh per acre.
The court stated suffering losses can't be a ground for rate reduction.
- Who
- Justice Suraj Govindaraj made the observation while dismissing a petition filed by Hadee Forging Private Limited.
- What
- The court dismissed a petition from Hadee Forging Private Limited, which sought a reduction in land allotment price.
- When
- The initial land allotment was based on a meeting held on March 30, 2016. The other companies received allotment based on April 5, 2016 meeting.
- Where
- The case concerns land in the Jakkasandra Industrial Area, Malur taluk of Kolar district.
- Why
- The court stated that the fixation of land prices is a policy decision and cannot be intervened.
Hadee Forging's Position
Court's Stance
Land Allotment Price
Hadee Forging's Position
The company contended they deserved the same treatment and sought a reduction in the allotment price, citing losses.
Court's Stance
The court cannot interfere with the fixed prices.
- Court
- Karnataka High Court
- Petitioner
- Hadee Forging Private Limited, Bengaluru
- Land Allotment Size
- 2 acres
- Original Allotment Price
- Rs 1.4 crore per acre
- Later Allotment Price (for other companies)
- Rs 88 lakh per acre
- Location
- Jakkasandra Industrial Area, Malur taluk, Kolar district