Karnataka Introduces Online System to Combat Land Compensation Fraud

The government of Karnataka is set to launch a new online system aimed at addressing widespread irregularities in land acquisition processes. This initiative is expected to significantly reduce the misappropriation of public funds, which has resulted in a staggering financial burden of approximately Rs 2 lakh crore to compensate landowners affected by the Upper Krishna Project (UKP), a critical irrigation scheme in northern Karnataka.

According to Krishna Byre Gowda, Karnataka’s Revenue Minister, the online system should be operational within three to four months. He explained that the platform will allow for better monitoring of compensation rates, guidance values, and court cases related to land acquisition. “Fixing compensation rates, loading guidance values to prevent their manipulation, tracking of court cases… all this and more can be monitored in the online system,” Gowda stated.

The minister acknowledged that “big mistakes” have persisted in the land acquisition process for too long. While he anticipates that the new system will resolve 50-60 percent of the existing issues, he emphasized the need for a “higher level of involvement” from the government to eliminate fraud entirely.

Gowda highlighted the financial implications of the UKP, noting that the approved land acquisition cost was initially set at Rs 17,000 crore. However, due to decisions made by civil courts to increase compensation rates, costs have escalated dramatically. The court-ordered compensation rates vary significantly, ranging from Rs 74 lakh to Rs 23.5 crore per acre, depending on the type of land. “Had officials filed timely appeals before courts, we would not be facing this burden,” Gowda remarked.

Currently, the government is tasked with compensating Rs 66,000 crore for the acquisition of 29,400 acres that have already been acquired, while an additional 1.04 lakh acres remain to be acquired. If the ongoing litigation leads to more court-ordered compensation, the total financial obligation could exceed Rs 2.01 lakh crore. Gowda questioned, “Which government can afford this?”

In a previous statement, DK Shivakumar, the Deputy Chief Minister and Minister for Water Resources, alleged that some government advocates are “colluding” with a “big cartel” to inflate compensation rates related to land acquisition for the UKP. He noted that even the National Highways Authority of India (NHAI) incurred an additional cost of Rs 3,000 crore due to irregularities in the land acquisition process.

Gowda further explained that delays in land acquisition are often exploited by some landowners, who use the time to either purchase additional land or convert agricultural land to non-agricultural use. This tactic is aimed at claiming higher compensation rates. He illustrated this issue with a case from Narsapura in Kolar, where landowners planted crops on dry land just before acquisition to qualify for better compensation. “All that the officials had to do before fixing compensation was to check satellite imagery to ascertain the truth of the land,” he pointed out.

While only a portion of a converted piece of land is eligible for compensation, many landowners have been able to claim compensation for the entirety of their land. “In several cases, 100 percent of the land got compensation,” Gowda added.

The introduction of the online system marks a significant step towards enhancing transparency and efficiency in land acquisition in Karnataka. As the government strives to curb fraud and streamline processes, the success of this initiative could serve as a model for other states grappling with similar issues.