Bengaluru-Mysuru Infrastructure Corridor May Be 'Karnataka's Biggest Scam': HC Orders Independent Probe
Bengaluru-Mysuru Infrastructure Corridor May Be 'Karnataka's Biggest Scam': HC Orders Independent Probe Published By, Last Updated: July 29, 2026, 20:28 IST The Karnataka High Court
Bengaluru-Mysuru Infrastructure Corridor May Be 'Karnataka's Biggest Scam': HC Orders Independent Probe Published By, Last Updated: July 29, 2026, 20:28 IST The Karnataka High Court termed the BMICP "one of the biggest scams" in the State, upheld quashing of land acquisition, and said farmers were denied compensation for over 23 years. Rapid Read A view of the Bangalore-Mysore Infrastructure Corridor peripheral road stretch between Mysore Road and Tumkur road, developed by Nandi Infrastructure Corridor Enterprises Limited (NICE), in Bengaluru. The Karnataka High Court on Wednesday described the Bengaluru-Mysuru Infrastructure Corridor Project (BMICP) as “one of the biggest scams" in Karnataka, while dismissing a batch of appeals filed by Nandi Infrastructure Corridor Enterprise (NICE) and the Karnataka Industrial Areas Development Board (KIADB). A Division Bench of Justices DK Singh and TM Nadaf upheld a single-judge ruling that quashed the acquisition of certain farmers’ lands after authorities failed to determine compensation for more than two decades. “It appears that this BMICP may be one of the biggest scam in the State of Karnataka and it demonstrates how a State, which is the trustee of the natural resources on behalf of the citizens, can allow the private interest to flourish in utter violation of the constitutional mandate," the Bench observed. The court further remarked that there was “nothing nice about the NICE project", saying farmers had been deprived of their land and generations-old livelihoods without receiving compensation guaranteed under Article 300A of the Constitution. “The NICE project has done nothing but to benefit its proponents in an astronomical way at the expense of the landowners and the public interest in general," the Bench added.
What the BMICP project proposed The BMICP was conceived under an agreement signed between the Karnataka government and NICE in April 1997. The project proposed • A 111-km expressway • A 41-km peripheral road • A 9.8-km link road • Five self-sustaining townships Between 1998 and 2009, around 20,193 acres were notified for acquisition under the Karnataka Industrial Areas Development Act, 1966, while final declarations were issued between 2003 and 2009. However, compensation awards for several landowners were never passed, even after 23 years. Why the landowners approached the court A single judge of the High Court had last year quashed the acquisition proceedings only in respect of the petitioners’ lands, holding that authorities could not keep acquisition proceedings pending indefinitely without determining compensation. The court had clarified that the petitioners were not challenging the validity of the BMICP or the acquisition notifications, which had already been upheld by the Supreme Court. Instead, their grievance arose from the authorities’ subsequent failure to determine compensation, giving them a fresh cause of action. Division Bench rejects NICE and KIADB appeals Rejecting the appeals, the Division Bench ruled that once land vests in the State under Section 28 of the KIAD Act, it does not free the government from its obligation to determine and pay compensation within a reasonable period. “Vesting answers the question of title. It does not answer the question whether the State can indefinitely postpone payment of compensation after depriving the citizens of their property," the court said. Although the KIAD Act does not prescribe a fixed time limit for passing compensation awards, the Bench said this could not be interpreted as permission to delay compensation indefinitely.
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