Writ Petition No. 1115 of 2021 · The High Court
Case Details
- 1 - NC: 2025:KHC:21777 WP No. 1115 of 2021 HC-KAR IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 23RD DAY OF JUNE, 2025 BEFORE THE HON'BLE MR JUSTICE SACHIN SHANKAR MAGADUM WRIT PETITION NO.1115 OF 2021 (LB-BMP) BETWEEN: 1. M/S. PRESTIGE STERLING URBAN INFRA PROJECTS PVT. LTD. (FORMERLY M/S. STERLING URBAN INFRA PROJECTS PVT. LTD.) A COMPANY INCORPORATED UNDER THE COMPANIES ACT, 1956 PRESENTLY HAVING ITS REGISTRED OFFICE AT PRESTIGE FALCON TOWER NO.19, BRUNTON ROAD BENGALURU-560001 REPRESENTED BY ITS AUTHORISED SIGNATORY MR. T. ARVIND PAI. …PETITIONER (BY SRI. HEGDE GANAPATI NARAYAN DUA ASSOCIATES., ADVOCATE) AND: 1. THE STATE OF KARNATAKA URBAN DEVELOPMENT DEPARTMENT 4TH FLOOR, VIKAS SOUDHA DR. AMBEDKAR VEEDHI BENGALURU-560001 Digitally signed by H K HEMA Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC:21777 WP No. 1115 of 2021 HC-KAR REPRESENTED BY ITS SECRETARY. 2. BRUHAT BENGALURU MAHANAGARA PALIKE N R SQUARE, BENGALURU-560002 REPRESENTED BY THE COMMISSIONER. 3. JOINT DIRECTOR TOWN PLANNING-NORTH BRUHAT BENGALURU MAHANAGAR PALIKE N R SQUARE, BENGALURU-560002 REPRESENTED BY ITS COMMISSIONER.
Legal Reasoning
(BY SRI. H.K. KENCHEGOWDA, AGA) …RESPONDENTS THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE IMPUGNED LETTER DATED 22.12.2020 BEARING NO. BBMP/ADDL.DIR/JDNORTH/LP/0062/2018-19 (ANNEXURE-A) ISSUED BY THE 2ND RESPONDENT AS REGARDS THE LEVIES DETAILED IN PARA NO.II ABOVE; ETC. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE SACHIN SHANKAR MAGADUM - 3 - NC: 2025:KHC:21777 WP No. 1115 of 2021 HC-KAR ORAL ORDER The captioned petition is filed seeking for the following reliefs: "WHEREFORE, it is most respectfully prayed that this Hon'ble Court be pleased to: (i) Issue a writ of certiorari or any other writ or order of the like nature quashing the Impugned Letter dated 22.12.2020 bearing No. BBMP/Addl. Dir/JD NORTH/LP /0062/2018-1 (Annexure-A) issued by the 2nd Respondent as regards the levies detailed in Para No.II above; (ii) Declare the Impugned Rules 37-A and 37-C inserted vide the Karnataka Planning Authorities (Amendment) Rules, 2019 in terms of a Notification dated 25.02.2020 bearing No. UDD 3 TTP 2015 (Annexure-B) as being unconstitutional and ultra-vires the Karnataka Town and Country Planning Act, 1961 and consequently strike down the said Impugned Rules as being illegal and arbitrary; - 4 - NC: 2025:KHC:21777 WP No. 1115 of 2021 HC-KAR (iii) Pass any other order as this Hon'ble Court may deem fit to grant in the circumstances of the case, in the interests of justice and equity." 2. It is brought to the notice of this Court that across the Bar, the issue is dealt by the Co-ordinate Bench in the reported judgment in W.P.No.23086/2022 and connected matters. The Co-ordinate Bench, while deciding the issue, has set-aside the Karnataka Municipal Corporations and Certain Other Law (Amendment) Act, 2021 (Karnataka Act No.01 of 2022) and the Karnataka Municipal Corporations and Certain Other Law (Amendment) Act, 2023, (Karnataka Act No.37 of 2024). Therefore, this Court deems it fit to cull out the operative portion of the order, which reads as under; "ORDER
Decision
(i) The writ petitions are partly allowed. (ii) The Karnataka Municipal Corporations and Certain Other Law (Amendment) Act, 2021 - 5 - NC: 2025:KHC:21777 WP No. 1115 of 2021 HC-KAR (Karnataka Act No.01 of 2022), is hereby quashed and set aside. (iii) The Karnataka Municipal Corporations and Certain Other Law (Amendment) Act, 2023, (Karnataka Act No.37 of 2024), is hereby quashed and set aside. (iv) It is hereby declared that the provisions contained in Section 18-A of the Karnataka Town and Country Planning Act, 1961, read with Rules 37-A and 37-C of the Karnataka Planning Authority Rules, 1965, are applicable only in respect of ‘Development Plan’ containing the proposal for construction on plots measuring more than 20,000 square meters in extent and not in respect of plots measuring less than 20,000 square meters. (v) It is hereby declared that if fee has been earlier collected for change of land use or while approving a layout plan, fee shall not be collected for subsequent ‘Development Plan’ in terms of the - 6 - NC: 2025:KHC:21777 WP No. 1115 of 2021 HC-KAR ‘Note’ found below TABLE I of Rule 37-A of the Karnataka Planning Authority Rules, 1965. (vi) It is hereby declared that the linking of the fee leviable under Rule 37-A of the Karnataka Planning Authority Rules, 1965, to the ‘market value’ or ‘guidance value’ as determined under Section 45-B of the Karnataka Stamp Act, 1957, is illegal. However, liberty is reserved to the respondent-State Government and the BBMP to re- fix a standard after collecting empherical data. (vii) Consequently, all the impugned Circulars which seek to give effect to the Rules 37-A and 37- C of the Karnataka Planning Authority Rules, 1965, are hereby quashed and set aside. (viii) It is hereby declared that Clause 3.8 of the Bengaluru Mahanagara Palike Building Bye- laws, 2003, providing for ‘Ground Rent’, is illegal and are accordingly quashed and set aside. - 7 - NC: 2025:KHC:21777 WP No. 1115 of 2021 HC-KAR (ix) Consequently, all the impugned Demand Notices raised by the respondent-BBMP, in respect of the writ petitioners herein are also quashed and set aside. It would be advisable that the BBMP may come out with a scheme for ‘One Time Settlement’ and settle the levy and collect the fee generally acceptable to the citizens of Bengaluru. This would also augment the present situation." 3. In the present writ petition, the core issue raised stands substantially covered and decided by the authoritative pronouncement of the coordinate bench, wherein the writ petitions were partly allowed and several consequential reliefs were granted. The Hon’ble Court, in unequivocal terms, quashed and set aside the Karnataka Municipal Corporations and Certain Other Law (Amendment) Acts of 2021 and 2023 (Karnataka Act Nos.01 of 2022 and 37 of 2024 respectively). 4. The Court further declared that the provisions under Section 18-A of the Karnataka Town and Country Planning - 8 - NC: 2025:KHC:21777 WP No. 1115 of 2021 HC-KAR Act, 1961, read with Rules 37-A and 37-C of the Karnataka Planning Authority Rules, 1965, are applicable only to development proposals concerning plots exceeding 20,000 square meters, and not to smaller plots. Importantly, it was also held that if a fee has been previously collected for change of land use or approval of layout plan, no further fee shall be levied for subsequent development plans, in view of the explanatory 'Note' to Table I of Rule 37-A. 5. The Court declared illegal the linkage of such levies to market or guidance value under Section 45-B of the Karnataka Stamp Act, and consequently, quashed all Circulars and demand notices issued to give effect to such unlawful interpretations. Clause 3.8 of the BBMP Building Bye-laws, 2003, imposing 'Ground Rent', was also struck down. 6. In view of these comprehensive declarations and findings, it is submitted that the controversy raised in the - 9 - NC: 2025:KHC:21777 WP No. 1115 of 2021 HC-KAR present writ petition no longer survives for adjudication independently, as it is squarely covered by the binding judgment of the coordinate bench. In the light of the law laid down in the reported judgment substantially covering the issue, which is raised in the captioned writ petition, the writ petition is liable to be allowed strictly aligning to the operative portion of the said writ petition. 7. In view of the above, this Court proceeds to pass the following; ORDER (i) The writ petition is allowed. (ii) The impugned demand notice dated 22.12.2020 issued by respondent No.2 as per Annexure-A is hereby set-aside. (iii) Respondent Nos.2 and 3 are hereby directed to issue fresh/modified plan as the case may be. (iv) Respondent Nos.2 and3 are hereby directed to forthwith process the petitioner's - 10 - NC: 2025:KHC:21777 WP No. 1115 of 2021 HC-KAR application seeking building license and sanction of the building plan, strictly in accordance with law. (v) It is made clear that the issuance of the building license and approval plan shall not be withheld merely on the ground that the BBMP is contemplating to filing a writ appeal against the reported judgment. (vi) If the building license and sanction plan are issued, the same shall be subjected to the outcome of any appeal that may be filed by the BBMP against the judgment. Pending applications, if any, are also disposed off. Sd/- (SACHIN SHANKAR MAGADUM) JUDGE VMB List No.: 2 Sl No.: 45