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Karnataka's Land Lease Labyrinth: Government Grapples with Controversial JSW Steel Deal

  • Nishadil
  • January 01, 2026
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  • 4 minutes read
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Karnataka's Land Lease Labyrinth: Government Grapples with Controversial JSW Steel Deal

Karnataka Government Caught in a Bind Over Legally Dubious Land Lease to JSW Steel

The Karnataka government faces a tough choice: cancel a massive, potentially illegal land lease to JSW Steel, risking legal battles, or uphold it, inviting political backlash and ethical questions.

The corridors of power in Karnataka are currently buzzing with a familiar, yet intensely complicated, dilemma. It’s a classic political hot potato, one that sees the state government, now led by the Congress, caught between a rock and a hard place over a massive land lease order to JSW Steel. And let me tell you, the stakes are incredibly high, both legally and politically.

At the heart of this predicament is a contentious order issued by the previous BJP government in September 2022. This order sanctioned the lease of a colossal 3,546.10 acres of government land in Ballari district – a region synonymous with mining – to JSW Steel for its ongoing operations. Now, on the surface, that might sound like standard procedure. But here’s the kicker, the detail that has everyone in a tizzy: this significant decision reportedly bypassed the state Cabinet. Yes, you heard that right – the Cabinet, which by all accounts, should have had the final say on such a substantial land transfer.

You see, this isn't just any parcel of land. According to the Land Grant Rules of 1969, any government land exceeding a mere 10 acres that's slated for grant or lease absolutely must receive approval from the state Cabinet. It's a safeguard, a crucial check and balance designed to prevent arbitrary decisions. So, when the previous administration's order came through without this vital step, it immediately raised a forest of red flags, particularly among senior leaders in the current Congress government, including Chief Minister Siddaramaiah and Deputy Chief Minister D.K. Shivakumar.

It’s almost a sense of déjà vu, isn’t it? The very same Chief Minister Siddaramaiah, during his previous tenure, had vehemently opposed such land allocations to JSW Steel, even taking the matter all the way to the Supreme Court. Back then, his government had strongly argued against privatizing these valuable lands. So, imagine the awkwardness now, facing a decision to either endorse or overturn an order that flies in the face of their historical stance. Talk about a full circle moment!

The Revenue Department, having delved into the specifics, apparently saw the writing on the wall. They sought a legal opinion and subsequently recommended the cancellation of the 2022 order, deeming it illegal precisely because of that missing Cabinet nod. Their reasoning was straightforward: the procedure wasn't followed, plain and simple. However, the Law Department, perhaps foreseeing a long and arduous legal battle, has advised a more cautious approach, hinting at potential litigation if the government moves to scrap the deal. And therein lies the rub – the classic Catch-22.

So, what’s a government to do? They're truly caught between a rock and a hard place. On one hand, cancelling the order, while seemingly the principled move given the procedural irregularities, could plunge them into a complex legal quagmire. JSW Steel, naturally, would likely fight back, citing potential economic losses and perhaps even accusing the government of political vendetta. On the other hand, if they choose to uphold the order, despite its questionable legality, they risk being seen as condoning an illegal act. This would not only invite severe criticism from the opposition and the public but also raise ethical questions about transparency and accountability in land governance. It’s a tightrope walk, to say the least, with no easy answers in sight.

The previous BJP government, for its part, had justified the 2022 order by arguing that the land had already been earmarked for mining activities way back in 2004, and the 2022 order was merely about executing the long-pending lease deed. But even that explanation, it seems, hasn't quite smoothed over the concerns about the bypassed Cabinet approval. As things stand, the current government is under immense pressure to make a decision, and whatever path they choose, it's bound to have significant repercussions for Karnataka's political landscape and its future land policies.

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