The appellants (N. Arasappa and others) challenged the compulsory acquisition of approximately 59 acres of land in Nelakadiranahalli, Karnataka, initiated by a Section 4 notification dated 22.11.1988 and a Section 6 declaration dated 04.12.1989, for the housing scheme of the 4th respondent Cooperative Society. The Single Judge had found the acquisition vitiated by fraud, involvement of middlemen/agents (Bhagya Enterprises), irregularities documented in the GVK Rao Committee Report, absence of an approved housing scheme, and private payments to landowners in violation of the Land Acquisition Act; however, the Division Bench reversed this, dismissing the challenge on grounds of delay and res judicata. The Supreme Court found that fraud vitiates all solemn acts and cannot be defeated by res judicata, that the prior agreement (Annexure P1) between the Society and a third party to facilitate acquisition in exchange for commission was opposed to public policy, that there was no valid prior government approval of a housing scheme under Section 3(f)(vi) of the Land Acquisition Act, and that the acquisition was tainted by colourable exercise of power, bribery of officials, deficient membership verification, and non-compliance with statutory timelines under Section 11A. The Supreme Court accordingly set aside the Division Bench's order and restored the Single Judge's finding that the acquisition was invalid.