Can an industrial plot owner legally build a residential house and lease part of the land? (KIADB, Karnataka)

#Discussion

I'm trying to understand whether this is actually allowed or if I'm misunderstanding the rules.

The property is Plot No. 1113, Kanabargi Industrial Area, Auto Nagar, Belagavi, Karnataka.

From the KIADB sale deed, one clause says the purchaser shall carry out only industrial activity on the property and that any additional construction requires approval from KIADB. Another clause says prior approval of the Board is required for utilizing the balance land.

However, the property appears to have:

A large residential house (roughly 2,000 sq. ft.)

The remaining land being used by a third party ( has been leased as per Encumbrance certificate )

I have:

Photos of the property: \[ https://drive.google.com/drive/folders/1zMF1SKIr9fPYCtIPKsKJ4DOOf7uOyTT- \]

Copy of the registered KIADB sale deed: \[ https://drive.google.com/file/d/1dRcqZbsXsm24UyhqVjacl263r1uoqLSq/view?usp=drivesdk\\ ]

Google Maps location: \[ https://maps.app.goo.gl/61ipMfZjMRHrvo558?g\\\_st=ac\\ ]

I'm not looking to accuse anyone without basis. I just want to know:

  1. Is a full-fledged residential house allowed on a KIADB industrial plot?

  2. Can the owner legally lease part of the industrial plot to a third party?

  3. Would KIADB have to issue specific written permission for either of these?

  4. If this is a violation, what is the proper authority to approach?

I'd appreciate any advice from people familiar with KIADB allotment conditions or Karnataka property law.

Posted Jul 10, 2026, 5:51 PM UTC

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