Karnataka High Court Issues Notices to BBMP and State Government Over EWS Quarters Case
The Karnataka High Court has issued notices to the state government, the Bruhat Bengaluru Mahanagara Palike (BBMP), and several other parties following a petition by the Karnataka EWS Residential Welfare Association. The petitioners have called for an investigation by the Lokayukta into alleged irregularities involving the BBMP, the project developer Maverick Holdings and Investments Private Limited (MHIPL), and other related parties. The case pertains to the construction of residential quarters for the Economically Weaker Section (EWS) in Koramangala, Bengaluru, and the events that followed.
The Dispute Over the EWS Quarters
The origins of the dispute trace back to the construction of EWS quarters by the BBMP in Koramangala. Due to what the petitioners claim to be poor construction quality, several blocks of these quarters collapsed, forcing residents to evacuate. Representing 1,512 allottees, the petitioners argue that they were unjustly deprived of their land and housing through questionable means. They allege that the BBMP and MHIPL collaborated in carrying out activities that violated their rights.
According to the petitioners, the 1,512 families are entitled to a proportional share in the undivided land as per a 2012 Karnataka High Court ruling. This ruling also included a settlement agreement, which was meant to benefit the families. Under the terms of this agreement, MHIPL was responsible for constructing apartments on 7.2 acres of land for the EWS allottees. However, despite the passage of several years, no such apartments were constructed, leaving the families without adequate housing.
The Controversial Mortgage Deed
The situation escalated when, on April 1, 2019, MHIPL, with BBMP's consent, executed a mortgage deed transferring 50% of the EWS land to a third party, Sammaan Capital Limited. The petitioners contend that this transaction was carried out without their knowledge or approval, and that it undermines the 2012 agreement meant to protect their rights. The land in question was part of the property designated for new housing for the EWS families.
The petitioners further claim that the transfer of their land to Sammaan Capital Limited compromised their rightful interests in the property. They believe that this transaction was done without any consultation with the affected families, in direct contradiction to the High Court’s previous order.
Public Notice and Financial Demands
In August 2024, Sammaan Capital Limited issued a public notice under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI Act). The notice claimed a substantial financial demand of Rs 560.46 crore from several entities, including Garuda Maverick Infrastructure Private Limited, Embassy Garuda Realty Ventures LLP, and Maverick Holdings. The notice identified 3.82 acres of land, approximately 15,459 square meters, as part of this financial claim.
The petitioners have highlighted that the 3.82 acres in question are part of the larger 22-acre property in which they hold undivided interest. This further complicates the situation, as the petitioners assert that their land is being involved in financial dealings without their consent. They argue that the BBMP should not have approved the mortgage deal, especially involving third parties like Embassy Garuda Realty Ventures LLP, and have expressed concerns about the legal implications of these actions.
Petitioners Call for Lokayukta Investigation
Due to the complexities surrounding the case, the petitioners are seeking an in-depth investigation by the Lokayukta. They have urged the Karnataka High Court to direct the Lokayukta to file a complaint against all parties involved, including the BBMP, MHIPL, and Sammaan Capital. The petitioners argue that there has been a concerted effort to deprive them of their property and rights, and they seek appropriate legal action.
The case, heard by Justice Hemant Chandanagoudar, resulted in notices being issued to the parties involved, including MHIPL, Garuda Maverick Infrastructure Project Private Limited, Embassy Garuda Realty Ventures LLP, Sammaan Capital Limited, and the Lokayukta police. The court has adjourned the matter to September 30, 2024, for further hearings.
The Road Ahead
This case represents a crucial legal battle for the 1,512 EWS families, who have been seeking justice after years of displacement and uncertainty. The outcome could have significant implications for not only the families but also the broader issue of affordable housing and the treatment of economically weaker sections in urban development projects. As allegations of mismanagement and improper transactions come into focus, the Karnataka High Court's decision will be closely observed in the months ahead.
As the case proceeds, the petitioners are hopeful that the court will take corrective measures and restore their rights to land and housing. The upcoming hearing on September 30 is expected to play a pivotal role in determining the future course of this ongoing legal struggle.
Image source-olkarnataka.kar.nic.
