BENGALURU: Prolonged delays and disputes in the issuance of sale deeds by the Karnataka Industrial Areas Development Board (KIADB) are severely impacting entrepreneurs. Many have reported being stuck despite having fully paid for their plots years ago.
According to interviews conducted by TOI, numerous allottees find their industrial aspirations hindered due to land embroiled in legal disputes or pending sale deeds caused by bureaucratic obstructions.
A 72-year-old resident of Isro Layout, who applied for a plot in Harohalli III Phase in 2004, mentioned that he was only called for an interview in 2016. After investing over Rs 1.7 crore, he was allocated an acre in January 2023, only to discover it was under litigation. “Despite paying extra for a corner plot, I have neither a possession certificate nor a sale deed. I’m still working from a rented space, paying over Rs 1.5 lakh monthly and managing loan repayments. I’ve approached KIADB multiple times without receiving any clear answers,” he shared.
Another entrepreneur residing near Kanakapura Road expressed frustration over having paid in full for half an acre in Harohalli Phase 2 fourteen years ago, yet still awaits the execution of his sale deed. “Now, the board wants an additional payment of Rs 12.5 lakh based on current land value, in addition to penalties and interest. Why should I bear the cost for delays caused by KIADB? After all this, the land still isn’t legally mine,” he stated.
Others from Dasarahalli and Bommasandra also reported similar challenges, choosing to remain anonymous. Industry representatives highlight that these incidents reflect broader systemic issues, especially since many entrepreneurs trust KIADB over private developers due to its government affiliation.
“We’re receiving complaints from all over Karnataka. After meeting with senior officials, we’re planning to escalate the matter to the minister, but KIADB’s responses have been sluggish. Alarmingly, only 6% of industrial land in Karnataka falls under the board’s management, yet the issues it faces are substantial,” remarked MG Rajagopala, former president of Kassia (Karnataka Small-Scale Industries Association).
Impact on Business Viability
In Peenya, where numerous small enterprises thrive, these issues have persisted for years. “Even after decades of applying, many entrepreneurs still haven’t received their sale deeds. Individuals invest their entire careers building these businesses, hoping the land will serve as a retirement asset. Without a sale deed, they’re left in uncertainty,” commented Shiva Kumar R, past president of the Peenya Industries’ Association.
He added that these delays are detrimental to business viability. “The government promotes ease of doing business; however, without prompt action from officials, the reality on the ground won’t change.”
This problem also hampers access to financing. CR Janardhana, chairman of Printech Park Cluster in Harohalli Phase 1, stated, “Banks regard leasehold land as non-owned property. Entrepreneurs struggle to secure funding without sale deeds. Meanwhile, officials focus on high-profile events like Invest Karnataka while these fundamental problems remain unaddressed.”
KIADB’s Stance: No Backlog
A senior KIADB official stated that the board grants sale deeds only when specific criteria are fulfilled. “At least 50% of the allotted land must be utilized, with no lease violations, and the factory should have operated for a minimum of two years. Once verified through an inspection, the sale deed process commences. If all conditions are satisfied, we issue the deeds. We do not have any backlog,” they claimed.
However, allottees and industry associations argue that compliance is often completed, yet deeds continue to be delayed, leaving businesses stuck in limbo.
