Bengaluru: Karnataka Chief Minister D K Shivakumar has strongly objected to public sector undertakings (PSUs) auctioning land allotted to them by the state government, describing the practice as a misuse of public resources.
Shivakumar raised the issue at the Southern Zonal Council meeting chaired by Union Home Minister Amit Shah. During the discussion on the utilisation of defence lands, the Chief Minister highlighted concerns over state-owned land being sold or auctioned by PSUs after they become non-functional or cease operations.
He argued that land given by the government for public or nation-building purposes should be returned to the government if the recipient institution no longer requires it.
ITI land auction triggers concern
Shivakumar referred to Indian Telephone Industries (ITI), a Bengaluru-based public sector undertaking, while raising the issue at the meeting.
He said he had received information from state officials that ITI, which he described as having become non-functional, was auctioning land in Bengaluru.
The Chief Minister questioned the practice of allowing PSUs to auction government-allotted land after their operations decline or cease.
According to Shivakumar, the state government provides land to PSUs with the expectation that it will be used for specific public and developmental purposes. If the organisation subsequently shuts down or becomes commercially unviable, the land should not automatically become an asset that can be disposed of without the state’s consent.
State may approach court
Shivakumar said the Karnataka government would take steps to prevent the development of land that it believes is being disposed of improperly.
He said the state government was prepared to approach the courts to stop such transactions and would not grant permission for development of the disputed properties.
The statement signals a potential legal and administrative challenge over the disposal of land that was originally allotted by the state government.
The issue could also have implications for other public institutions that received government land at concessional rates or without payment for public purposes.
Wider concern over government land
According to a statement from the Chief Minister’s Office, Shivakumar raised a broader concern regarding land allotted by state governments to PSUs and other institutions free of cost as part of the nation’s development process.
He pointed out that there were instances where beneficiaries subsequently attempted to sell or auction the land without obtaining the consent of the appropriate state authorities.
The Chief Minister argued that such properties should not be treated in the same manner as privately acquired land because the original allotment was made by the government for a specific purpose.
The concern is particularly relevant in major urban centres such as Bengaluru, where government-owned land has significant economic value because of rising land prices and development pressure.
Policy issue raised with Centre
The matter was raised in the presence of Union Home Minister Amit Shah during the Southern Zonal Council meeting.
The council provides a platform for states in the southern region to discuss matters involving inter-state coordination and broader policy issues with the Union government.
Responding to Shivakumar’s concern, Shah said the matter was a policy issue and should be raised with the Union government.
The response indicates that resolving the issue may require consideration at the central level, particularly in cases involving PSUs and institutions under the administrative control of the Union government.
Debate over public assets
The dispute highlights a larger question over the management of government land allotted to public sector organisations.
Governments frequently allocate land to institutions for industrial, infrastructure, administrative and other public purposes. Such allotments can facilitate economic development and employment generation.
However, when the original purpose of an allotment disappears because an institution shuts down, becomes inactive or restructures its operations, questions can arise over ownership and the future use of the property.
Shivakumar’s position is that the state should retain a say in the disposal of such land, particularly where the property was originally granted by the government without charge.
Bengaluru land values add significance
The issue assumes particular significance in Bengaluru, where land values have risen sharply over the years and large parcels of government-allotted land can represent substantial public assets.
Any auction or transfer of such property can therefore have financial and developmental implications beyond the immediate transaction.
The Karnataka government is seeking to ensure that land originally allocated for public purposes is not disposed of without appropriate government approval.
The Chief Minister’s comments also suggest that the state intends to examine similar instances rather than limiting the issue to the ITI property mentioned at the meeting.
Need for clear guidelines
The controversy could lead to discussions on clearer rules governing the disposal of land allotted to PSUs and other public institutions.
A defined policy could specify the circumstances under which an institution can transfer, sell or auction government-allotted land and when the property must instead revert to the government.
Such guidelines could also establish procedures for determining the future use of land when a PSU becomes non-functional or undergoes closure.
For state governments, retaining control over such assets could help ensure that valuable land continues to serve public interests rather than being disposed of without their participation.
The issue raised by Shivakumar before the Southern Zonal Council has therefore opened a wider discussion on the ownership, utilisation and disposal of government-allotted land. Further action is likely to depend on discussions with the Union government and the legal status of individual land allotments.