Explained | The row over Bengaluru land allotment to Kharge family trust

Mallikarjuna Kharge's family trust Siddhartha Vihara Trust acquired five-acres of a civil use (CA) site in Bengaluru's Hi-Tech Defense and Aerospace Park.

Even as a political row broke out in the state over it, the Kharge family's Siddhartha Vihara Educational Trust returned the disputed plot to the Karnataka Industrial Area Development Board (KIADB).

Also read | BJP is 'party of terrorists': Congress chief Mallikarjun Kharge

What is this KIADB site controversy that has caused embarrassment to AICC president Kharge and his sons Priyank and Rahul Kharge? What is the Opposition's charge? What is the government's justification? What is behind the Kharge family's decision to return the plot of land?

Here's what you need to know about the entire row.

What is the dispute about?

Rahul Kharge, CEO of Siddhartha Vihara Trust, had submitted a proposal to KIADB seeking 5 acres of land for setting up a multi-skill development centre at the aerospace park. The KIADB sanctioned a five-acre Civil Use site (CA site) on May 30, 2024, through the State Level Monitoring Committee.

On that occasion, 193 organisations had applied to KIADB for CA land in the aerospace park. Of them, 43 institutions were selected. Finally, the Siddhartha Vihara Educational Trust was given the CA site. But, a controversy arose after a social activist named Dinesh Kallahalli poked holes in the land allotment process.

The trust, which has no experience in the automobile industry, has been allotted the plot to set up a training centre in automobile production skills, by misusing the authority and violating the rules, he alleged. Kallahalli claimed that the land allocation was not fair.

How did this issue come to the fore?

As Dinesh Kallahalli's complaint came to light, BJP Rajya Sabha MP Lahar Singh Siroya and legislative council Opposition leader Chalawadi Narayanaswamy officially took up the matter with the Karnataka Governor, demanding a comprehensive investigation into the land allotment process.

They raised objections against the Trust being allotted the land in what they called an opaque process.

Also read | MUDA | Topple or not? Karnataka Opposition divided on Siddaramaiah

Based on Lahar Singh's complaint, Governor Thawarchand Gehlot wrote to Chief Secretary Shalini Rajneesh, seeking clarification on the issue.

Why did the Kharge family trust acquire the land?

The Siddhartha Vihara Trust sought land to set up a multi-skill development centre at the aerospace park.

The Trust intended to provide automobile production and software skill training. It was to invest ₹10 crore from promoters, ₹10 crore as bank loan and ₹5 crore as fixed capital to set up a skill development centre with a total cost of ₹25 crore.

The skill development centre was to become operational on December 30, 2027 and the trust had promised to provide employment to 150 people.

What is the government's justification for the land allotment?

When the issue came to a boil, Karnataka Industries Minister MB Patil gave a clarification, saying the site was allotted to Rahul Kharge “at a prescribed price, with no discounts given”.

He said the aerospace park CA site was given to Rahul Kharge at the KIADB fixed price without any concession. Rahul is an IIT graduate. He had asked for the site with the intention of setting up an R&D unit, Patil said.

Kharge's family has been involved in educational activities for many years, he said, adding that the previous BJP government had allotted 116 acres to Chanakya University for just ₹50 crore in the industrial area. "This had resulted in a loss of ₹137 crore to the government's exchequer," pointed out Patil.

Siddhartha Vihara Trust allotted land again?

In the past decade, 24 acres of land have been allotted to the Siddhartha Vihara Trust owned by the Kharge family.

A total of 19 acres was allotted in Kalaburugi in 2014 and 2017 for the establishment of an International Institute for Pali, Culture and Comparative Philosophy. The remaining 5 acres were for an R&D establishment at the Bangalore Aerospace Park in 2024.

Also read | Parvathi Siddaramaiah's return of MUDA sites — a political masterstroke?

A Comptroller and Auditor General (CAG) report criticised the allotment, saying it appeared to have been made for private interest rather than for public purpose.

Who are the members of the Siddhartha Trust?

Currently, the Siddhartha Vihara Trust consists of AICC president Mallikarjuna Kharge, his wife Radhabai Kharge, son-in-law and Kalaburagi MP Radhakrishna Doddamani, and sons Priyank and Rahul.

Rahul Kharge, the elder son, is the chairman of the trust.

Which are other organisations have acquired space in the aerospace park?

A total of 45.94 acres of space in the aerospace park has been acquired by 11 companies with a total investment of ₹1,208 crore. KIADB allotted 5 acres of land under the Scheduled Caste quota to Siddhartha Vihara Trustee in the same place.

Around 2.41 acres of land were allotted to ARM Square Company under the SC/ST quota. It is developing hotels, resorts, cottages at a cost of ₹17.50 crore in this space.

Advik Gateway has given 2.17 acres to the company. The organisation is investing ₹47.92 crore for construction of residential houses.

Kharge family returns the land

After the BJP and JD(S) Opposition alliance stepped up their attack, Rahul Kharge wrote a letter to KIADB on September 20 to return the disputed land.

He has withdrawn the trust's request for a civic amenities site at the Hi-Tech Defence and Aerospace Park near Bengaluru.

Priyank Kharge told a news conference on Sunday that legitimate ventures of the Kharge family members were being thwarted due to the “Manusmriti mentality of the BJP”, which did not want backward communities to develop.

Further, he said, “If there were any substance in the allegation, would Prime Minister Narendra Modi or Union Home Minister Amit Shah let it go? Would (Leader of Opposition) R Ashok or (BJP state president) B Y Vijayendra sit silently over the issue? They would have carried out a padayatra till Kalaburagi!”

(This article was originally published in The Federal Karnataka.)