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Infosys’ recent sale of a 53.5-acre land parcel in Anekal Taluk near Bengaluru for Rs 250 crore has sparked a political controversy, with questions raised over whether the land was originally allotted by the Karnataka government at concessional rates.
However, Infosys has clarified that the 53.5-acre land parcel it sold in Anekal Taluk near Bengaluru for Rs 250 crore was privately purchased from the open market and not allotted by the government at concessional rates.
What is the deal?
Infosys sold the 53.5-acre parcel, located in Attibele Hobli of Anekal Taluk, to Bengaluru-based real estate developer Puravankara in a transaction valued at Rs 250 crore, according to a report by The Times of India. The land has a saleable area of 6.4 million square feet and a potential gross development value (GDV) of over Rs 4,800 crore.
In a stock exchange filing, Puravankara said the acquisition supports its strategy of adding quality developable land across strategic Bengaluru micro-markets. Managing director Ashish Puravankara said the deal reflects a disciplined approach to growth and confidence in the fundamentals of these locations to develop large, sustainable communities.
Why did the controversy arise?
The deal drew political attention after Congress MP Karti Chidambaram questioned the sale, suggesting that land given at concessional rates for a specific purpose cannot be sold commercially if that purpose is not fulfilled. “If the land was given at a concession for a specific purpose & the land wasn’t utilised for that purpose @Infosys has no right to sell it for a commercial rate today. Return the land & proceeds to the Government of Karnataka,” Chidambaram said in a post on X.
https://x.com/KartiPC/status/2004769144416469117?s=20
The remarks triggered a wider debate on social media, with journalists and commentators questioning the origin of the land and whether Infosys had benefited from any government subsidy.
What did Infosys say?
Infosys denied the allegation, stating that the land was not allotted by the government. In a statement, the IT services major said the sale was part of its asset divestment programme aimed at optimising asset utilisation. “The sale was executed in adherence with Infosys’ policies, external approvals and compliance with regulatory requirements,” the company said.
Infosys added that the land was purchased as non-commercial and non-industrial land at market value and not allotted by the government.
Former Infosys chief financial officer Mohandas Pai also addressed the issue on X, calling the claims misleading. “This is not govt land so please stop this fake narrative. It was purchased from the market for a campus and now there is no need,” Pai wrote, asserting that the transaction was legitimate.
https://x.com/TVMohandasPai/status/2005114142144036913?s=20
What does this mean for Puravankara?
Puravankara CEO, South Mallanna Salasu said that in the first half of FY-26, the company added 6.3 million sq ft of developable area across Bengaluru and Mumbai, with a GDV of Rs 9,100 crore. With the Attibele acquisition, total developable area for the year so far has risen to 12.7 million sq ft, taking the potential gross development value (GDV) to Rs 13,900 crore.
Salasu also pointed to earlier acquisitions, including a partnership with KVN Property Holdings LLP for a 24.5-acre parcel at KIADB Hardware Park in North Bengaluru and a joint development for a 5.5-acre parcel in Balegere, East Bengaluru.