The Supreme Court on 26 October 2026 quashed a Karnataka cooperative housing acquisition tainted by fraud, directing restoration of land to its original owners.
Judge / Bench — J.B. Pardiwala and K. Vinod Chandran, JJ.; judgment by K. Vinod Chandran, J.
In N. Arasappa’s connected appeals, the Court held that government approval must cover an actual housing scheme with a layout and blueprint. It found improper intermediary arrangements, defective membership verification and colourable exercise of acquisition powers. Earlier litigation and delay could not shield the established fraud.
Landowners recovering possession must refund government compensation without interest. Private payments are excluded. Unrestored plots must be auctioned under judicial supervision for victim compensation. Costs were increased to ₹50,000 per original petitioner or group of legal representatives; contempt directions were removed because of elapsed time.
Advocates appearing — Appellants: Kiran Suri and Basava Prabhu S. Patil, Senior Counsel. Respondent 4/society: Vikas Singh, Senior Counsel. State: Sanjay R. Hegde, Senior Counsel, assisted by Omar Hoda, Additional Advocate General.