Bengaluru, August 22: Congress leader Ramesh Babu has written to both the central and Karnataka governments, demanding an immediate cancellation or suspension of the proposed e-auction for 44.03 acres of land belonging to ITI Limited in Krishnarajapuram, Bengaluru. This e-auction is being conducted through the National Land Monetization Corporation (NLMC), with a reserve price set at ₹1,685.40 crores.
In his letter, Ramesh Babu addressed Union Finance Minister Nirmala Sitharaman, Union Heavy Industries Minister H.D. Kumaraswamy, and Karnataka Chief Minister D.K. Shivakumar. He emphasized that ITI Limited was established in 1948 as a public sector undertaking (PSU) in the then Mysore state. At that time, the Mysore government allocated nearly 400 acres of land at concessional rates or free of charge to promote employment and public interest in this strategic industry.
Over the years, due to encroachments, transfers, and administrative issues, ITI Limited has lost control over a significant portion of its original land area. According to the letter, under the central government’s asset monetization scheme, ITI Limited recently sold 21 acres of land in Krishnarajapuram to the Central Goods and Services Tax Department for approximately ₹914.31 crores, with the sale registration occurring around July 2, 2026.
Now, the company has initiated the e-auction process for an additional 44.03 acres of land through NLMC. Ramesh Babu claims that some portions of the land proposed for auction are registered in the name of the state government, including allegedly government land that cannot be legally sold by ITI Limited or the central government.
He argued that handing over this land to private companies or developers solely for revenue generation contradicts the original public purpose for which the land was allocated. The letter warns that the outright sale of such valuable government land in a crucial area of Bengaluru could permanently eliminate opportunities for public projects, industrial development, job creation, and national asset building.
Ramesh Babu contended that selling public land for short-term financial gain is against the broader public interest, especially when ITI Limited is currently operating at a loss. He has called on both the central and state governments to immediately halt the e-auction process and conduct a joint review regarding the land.
He suggested that the land should remain with the government and be utilized for joint central-state industrial projects, skill development centers, manufacturing hubs, or other public infrastructure projects that would create jobs and further the original purpose of the land allocation made in 1948.
With the deadline for submitting technical bids for the e-auction set for September 16, 2026, Ramesh Babu stressed the urgent need for intervention in this matter.
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