Unable to sell the land as it could not be alienated under inheritance laws and unable to develop it for lack of resources, four sisters and the legal representative of the fifth, entered into partnerships in 1987 with K. L. Srihari, MD of the Khoday Group and his three brothers. Each of the five sisters was paid an initial amount of Rs 40 lakh for entering into the deal and five partnership firms were formed aimed to develop the 140 acres after obtaining clearances under the Urban Land Ceiling Act (ULCA). Though the value of the land around the Palace Grounds ranges from Rs 3,500 to Rs 4,500 per sq. ft, the Palace Grounds can only be developed as a park or an exhibition ground as it is also protected under the Open Spaces Act which bars any construction. The tie-up, however, turned sour with the partnerships not succeeding in getting clearances under the ULCA. The state government has been trying to acquire the palace but all these moves were stymied through court cases.