Curation Team
BENGALURU: Long delays and disputes in issuing sale deeds by the Karnataka Industrial Areas Development Board (KIADB) are causing serious financial distress to entrepreneurs, many of whom say they are stuck despite paying in full for plots years ago.
TOI spoke to several allottees who say their industrial dreams are on hold, with land entangled in litigation or sale deeds pending because of bureaucratic bottlenecks.
A 72-year-old man from Isro Layout, who applied for a plot in Harohalli III Phase in 2004, said he was called for an interview only in 2016. After paying more than Rs 1.7 crore, he was allotted an acre in Jan 2023 — only to learn that the land was under litigation.
“Despite paying extra for a corner plot, I don’t have a possession certificate or sale deed. I continue working from a rented shed, paying more than Rs 1.5 lakh a month and servicing loans. I’ve knocked on KIADB’s door many times but haven’t received a clear answer,” he said.
Another entrepreneur, from Kanakapura Road, said he paid in full 14 years ago for half an acre in Harohalli Phase 2, but the sale deed has still not been executed. “Now, the board wants me to pay an additional Rs 12.5 lakh based on the present land value, along with penalties and interest. Why should I pay for delays caused by KIADB? After all this, the land still isn’t legally mine,” he said.
Entrepreneurs from Dasarahalli and Bommasandra also admitted to facing similar issues but declined to go on record. Industry bodies say these cases point to a wider systemic problem, particularly frustrating because entrepreneurs prefer KIADB over private developers, trusting it as a govt agency.
“We’ve been getting complaints from across Karnataka. We’ve met senior officials and are now planning to approach the minister. But the response from KIADB remains slow. Only 6% of industrial land in Karnataka is under the board’s control, yet the challenges here are immense,” said MG Rajagopala, former president of Kassia (Karnataka Small-Scale Industries Association).
Hurting business viability
In Peenya, where hundreds of small businesses operate, issues have dragged on for years. “Even decades after applying, many entrepreneurs haven’t received sale deeds. People spend their working lives building these businesses and hope the land will be their retirement asset. Without a sale deed, they are left in limbo,” said Shiva Kumar R, past president of Peenya Industries’ Association.
He added that these delays directly hurt business viability. “The govt talks about ease of doing business, but if officials don’t act with urgency, the ground reality will never change.”
The problem also affects access to finance. CR Janardhana, chairman of Printech Park Cluster in Harohalli Phase 1, said: “Banks treat leasehold land as non-owned property. Entrepreneurs can’t raise funds easily without sale deeds. While officials focus on glitzy events like Invest Karnataka, these fundamental issues go unresolved.”
No backlog from our side: KIADB
A senior KIADB official said the board issues sale deeds only when certain conditions are met. “A total of 50% of the allotted land must be used, there should be no lease violations, and the factory must have operated for at least two years. Once verified through a spot inspection, the sale deed process begins. If all these are met, we issue the deeds. There is no backlog from our side.”
However, allottees and associations maintain that compliance is often complete, yet deeds are withheld — leaving businesses mired in delays.
