Karnataka govt’s land lease to private hotel firm raises questions over ₹600-crore revenue loss
Bengaluru: The Karnataka government has come under scrutiny for renewing a land lease in Bengaluru in violation of legal provisions. According to documents accessed under the Right to Information Act and sources familiar with the matter, this could potentially deprive the state exchequer of an estimated ₹600 crore over the next three decades.
According to a report published by Deccan Herald, the controversy centres on a 2-acre and 19-gunta parcel of land (1,07,593 sq ft) adjacent to the Karnataka Golf Association in Domlur, where Hotel Royal Orchid currently operates. The land was originally leased to Royal Orchid Hotels Ltd in 1992 through the Karnataka State Tourism Development Corporation (KSTDC). The lease was agreed upon for a 30-year term at ₹1.11 lakh per acre annually. The lease expired on January 1, 2022, after which the company sought renewal.
KSTDC records show that the firm had breached the original lease terms by sub-letting 25 guntas (27,000 sq ft) to another private entity, Golf View Homes, for ₹23.5 lakh without prior government approval. The KSTDC managing director, citing the violation, had recommended that the renewal request be rejected and the property instead be put up for auction. The 1992 government order prohibited transfer of the leased land by way of sublease, mortgage, or any other arrangement without official consent.
Ignoring this, a March 2023 meeting chaired by the then additional chief secretary of the tourism department decided in favour of renewing the lease for Royal Orchid Hotels. The decision also included cancellation of the portion of land that had been sub-let, but no punitive action was taken for the breach.
Officials pointed out that the lease renewal bypassed the Karnataka Transparency in Public Procurement (KTPP) Act, which requires public properties to be leased only through open auction. “If auctioned, the land along with existing hotel infrastructure could have fetched the government ₹20–25 crore annually. Instead, the revised lease terms are set to yield less than ₹2 crore per year, amounting to a loss of at least ₹600 crore over 30 years,” a senior source said.
The renewed lease was fixed “on the lines of” the Karnataka Golf Association agreement, although officials noted the comparison was flawed. While the KGA is a not-for-profit body promoting sports, Royal Orchid Hotels is a purely commercial enterprise.
In earlier communications, the KSTDC had estimated the market value of the Domlur land at ₹16,000 per sq ft. “Given the importance of mobilising resources for welfare schemes, the decision to renew the lease is a setback. The land should have been auctioned in the interest of public revenue,” an official remarked.
For comparison, Royal Orchid pays significantly higher lease rentals for properties in Mysuru, including ₹3.23 crore for the Metropole and ₹1.72 crore for Brindavan Garden Palace. Both these are linked to a revenue-sharing arrangement of 24 per cent of gross income.
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India, Ethiopia elevate ties to strategic partnership as PM Modi holds talks with his counterpart
Addis Ababa (PTI): India and Ethiopia on Tuesday elevated their historical ties to a strategic partnership, as Prime Minister Narendra Modi held wide-ranging talks with his Ethiopian counterpart Abiy Ahmed Ali during which they discussed issues of bilateral and mutual interest.
Modi, who arrived here from Jordan on his maiden bilateral visit, was accorded a ceremonial welcome at the National Palace ahead of the bilateral talks, reflecting the vibrant India-Ethiopia relations rooted in shared history and a promising future.
"We are elevating India and Ethiopia relations to a strategic partnership. This step will provide new energy, new momentum and new depth to our ties," Prime Minister Modi said during the delegation-level talks.
He thanked PM Ali for his support in India's fight against terrorism. "The support of friendly countries in this struggle against terrorism holds great significance," Modi said.
"Today, we got the opportunity to deliberate on the key aspects of our cooperation, such as economy, innovation, technology, defence, health, capacity-building and multilateral cooperation. I am pleased that today, we have decided to double the student scholarship for Ethiopia in India," Modi said.
Modi said that India and Ethiopia have shared contact, dialogue, and exchange for thousands of years. The two countries, which are rich in languages and traditions, are symbols of unity in diversity, he added.
"Both countries are democratic powers committed to peace and the welfare of humanity. We are co-travellers and partners of the Global South. On international platforms, we have stood shoulder-to-shoulder," he said.
The two sides signed eight MoUs/agreements, including upgrading ties to 'Strategic Partnership', customs cooperation, establishing data center at the Ethiopian Foreign Ministry, UN Peacekeeping training cooperation, debt restructuring under G20, more ICCR scholarships and AI short courses for Ethiopians, and support for maternal and neonatal healthcare.
Modi said the African Union's headquarters in Ethiopia makes the country a meeting point of African diplomacy. "Inspired by the common vision of an inclusive world, in 2023, India ensured that the African Union became a G20 member," he said.
In 2023, during India’s G20 Presidency, the African Union was admitted as a permanent member of the G20.
Modi said that though this is his first visit, he felt a deep sense of belonging and warmth, reflecting the thousands of years of connection between the two countries.
On his part, Prime Minister Ali said the two countries share over thousands of years of connection through trade, diplomacy, education, culture and even in our food and traditions. "These ties continue to shape a deep friendship, collaboration and mutual respect between our people," he said.
"We also appreciate your consistent message that Africa's priorities must lead the partnership. These kinds of dignified, respectful messages for Africa are very important. Mr Prime Minister, keep pushing. That is the type of message we are expecting from all our trusted friends," Ali said.
He said this aligned fully with Ethiopia's development plan - African-owned, African-led, and African-defined.
"Today, we meet with a clear focus to shape a modern partnership, grounded in sovereignty, self-reliance and practical cooperation. Our cooperation is rooted in equality and South-South solidarity," he said.
"Our economy is performing strongly. Last year, we grew 9.2% and this year we are expecting 10.3% GDP growth. Besides GDP growth, our FDI inflow is also rising big time. India is the leading source for our FDI," he said.
"We have more than 615 Indian companies which are investing in Ethiopia. This all gives our cooperation a strong foundation of trust. I think our decision today that we elevate our historic relationship to a strategic relationship is the right decision," he added.
Ethiopia also conferred its highest award - The Great Honour Nishan of Ethiopia - on PM Modi. He is the first global head of state to receive this award.
Prime Minister Modi also went to the Friendship Park and Friendship Square in Addis Ababa with PM Ali.
In a warm and special gesture, PM Modi was earlier received by his Ethiopian counterpart at the airport and accorded a warm and colourful welcome.
"Ethiopia is a nation with great history and vibrant culture," Modi said.
PM Ali informed his Indian counterpart about the varieties of Ethiopian coffee during informal talks.
"At Addis Ababa airport, took part in a traditional Coffee Ceremony with Prime Minister Abiy Ahmed Ali. The ceremony beautifully highlights Ethiopia’s rich heritage," Modi said.
In a unique gesture, the Ethiopian Prime Minister drove Modi to the hotel.
On the way, he took a special initiative of taking PM Modi to the Science Museum and Friendship Park, which was not in the itinerary.
"Gratitude to Prime Minister Abiy Ahmed Ali for showing me glimpses of Ethiopian history and culture at the National Palace Museum in Addis Ababa. It was a powerful reminder of Ethiopia’s rich traditions," Modi said in a post on X.
The Nobel Peace Prize-winning Ethiopian PM’s special gestures show remarkable respect for Modi, sources said.
"Thank you Ethiopia for a welcome that was unforgettable. The Indian community showed remarkable warmth and affection. India-Ethiopia friendship is going to get even more robust in the times to come," Modi said.
When Modi arrived at the hotel, he was warmly welcomed by the members of the Indian community. Local artists performed dances. Some of them danced on the theme of the popular Hindi song 'Aisa Des Hai Mera' to welcome him.
On Wednesday, Modi will address the Joint Session of Parliament and share his thoughts on India's journey as the "Mother of Democracy" and the value that the India-Ethiopia partnership can bring to the Global South.
PM Modi arrived in Ethiopia from Jordan, where he held a one-on-one meeting with King Abdullah II at the Husseiniya Palace on Monday before the delegation-level talks.
India and Jordan also inked MoUs in the fields of culture, renewable energy, water management, digital public infrastructure and twinning arrangement between Petra and Ellora, aimed at giving a major boost to bilateral ties and friendship.
From Ethiopia, Modi will visit Oman on the final leg of this three-nation tour.
