M/S.MURUDESHWARA CERAMICS LTD.&ANR vs STATE OF KARNATAKA

The Supreme Court upheld the High Court's decision that the acquisition of land by the second appellant contravened the Karnataka Land Reforms Act, 1961, specifically Sections 79A, 79B, and 80, which restrict land ownership to certain categories of individuals and prohibit non-agriculturists from holding agricultural land. The Court found that the exemption granted under Section 109 of the Act was ineffective as it was issued post-sale, thus invalidating the transaction. The Court affirmed the High Court's directive for a scientific study on environmental impact and the initiation of proceedings under Sections 82 and 83 of the Act.