A major land transaction in Bengaluru involving tech giant Infosys and real estate developer Puravankara, valued at approximately Rs 250 crore, has been the subject of intense scrutiny and public debate. The core of the controversy revolved around whether the sold land was originally allotted by the Karnataka government with restrictions on its sale.
Government Clarifies Land Ownership
Sources within the state's Industries Department have provided a crucial clarification, stating that the 53.56-acre parcel of land was not allotted to Infosys by the government. "The land sold was private land. Whatever the government allotted, they (Infosys) have used themselves," a department source told The Indian Express. This statement directly addresses the speculation that the company may have sold land given to it at concessional rates for specific industrial purposes.
The specific property, bearing survey numbers 92/3 and 92/6 in Arehalli village near Attibele, was sold on December 20, 2023. The buyer was Purva Blue Home Ventures Private Limited, a venture by the Puravankara Group. Records indicate that Infosys itself had acquired this land five years prior from Sobha Developers and other private entities.
Details of the Transaction and Past Allotments
Transaction details reveal a significant appreciation in the land's value. While the official market value was recorded at Rs 30.93 lakh, the actual consideration amount for the transaction stood at Rs 4.28 crore. The land is situated close to Phase 2 of Electronic City, where Infosys has historically received government-allotted plots.
Between 1998 and 2002, the Karnataka government allotted Infosys four plots in this area for its operations. These allotments included:
- 56,959.9 acres in 1998 (Survey Nos. 4/1,2,3,4 and 26/1,2)
- 32,400 acres in 1999 (Survey Nos. 8-P, 44-P, 92-P, 93-P)
- 8,046 acres (Survey No. 9-Part)
- 16,191 acres in 2002 (Survey No. 7-Part)
According to official records, sale deeds for these government-allotted lands were issued to the allottees on March 14, 2006. The source explained that once a sale deed is executed after project completion, the government no longer retains control over the property. "Even if the government allots the land, it has no control over the property once a sale deed is executed," the source noted.
Political Reaction and Company Statement
The issue ignited a significant debate on social media, particularly after Congress leader Karti P Chidambaram commented on the matter. He stated, "If the land was given at a concession for a specific purpose & the land wasn’t utilised for that purpose, Infosys has no right to sell it for a commercial rate today. Return the land & proceeds to the Government of Karnataka." This post fueled broader discussions about companies selling land allotted by the Karnataka Industrial Area Development Board (KIADB).
In response to the growing controversy, Infosys issued a formal statement asserting that the land in question was acquired by the company on the open market and was not part of any government allotment. This aligns with the clarification provided by the Industries Department sources.
The episode highlights the sensitive nature of land deals in Bengaluru's booming real estate market and the importance of transparency in transactions involving major corporates and government-allotted properties.
