Supreme Court: Land acquisition for cooperative housing scheme declared void, possession restored

A two‑judge bench of the Supreme Court, comprising Justice J.B. Pardiwala and Justice K. Vinod Chandran, delivered its judgment on 26 October 2026 in N. Arasappa v. State of Karnataka. The Court set aside the land‑acquisition notifications issued under the Land Acquisition Act for the Karnataka Gruha Nirmana Sahakara Sangha and restored possession of the disputed land to the four petitioners, dismissing the State’s and the Society’s appeals.

The petitioners contended that the State had acquired their land in Nelakadiranahalli without a duly approved cooperative housing scheme, alleging that the acquisition was executed through a middle‑man, Bhagya Enterprises, and based on a report of the G.V.K. Rao Committee that was allegedly manipulated. They argued that the absence of genuine public purpose under Section 3(f)(vi) of the Land Acquisition Act rendered the acquisition void, and that any defenses of res judicata or procedural delay should be barred by the alleged fraud.

The Court examined the evidentiary record and found no government sanction for the cooperative housing project, concluding that the purported public purpose was colourable. It held that the involvement of Bhagya Enterprises and reliance on the G.V.K. Rao Committee report demonstrated fraud that vitiated the acquisition process. Applying the principle that fraud defeats the operation of res judicata and defeats any claim of undue delay, the Court declared the acquisition notifications void, restored possession to the petitioners, dismissed the appeals and awarded costs.

Read the judgment and its head note on DLJ: N.ARASAPPA vs STATE OF KARNATAKA . (2026 INSC 1151).