Writ Petition No. 52333 of 2018 · The High Court
Case Details
- 1 - NC: 2025:KHC:21543 WP No. 52333 of 2018 HC-KAR IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 20TH DAY OF JUNE, 2025 BEFORE THE HON'BLE MR JUSTICE SACHIN SHANKAR MAGADUM WRIT PETITION NO. 52333 OF 2018 (LB-BMP) BETWEEN: 1. M/S SAVYASACHI PROJECTS A PARTNERSHIP FIRM HAVING ITS OFFICE AT NO.501, B WING, MITTAL TOWER M.G.ROAD, BENGALURU-560 001 AND REPRESENTED BY ITS PARTNER, MR VIJAYANATH HEGDE 2. PARAG MANIAR S/O LATE G.A.MANIAR, R/AT NO.19/1 1ST MAIN ROAD, JAYAMAHAL EXTENSION, BENGALURU AND REPRESENTED BY HIS GPA HOLDER MR. VIJAYANATH HEGDE, PARTNER OF M/S SAVYASACHI PROJECTS (BY SRI. PRAKASH B N.,ADVOCATE) AND: 1. THE STATE OF KARNATAKA REP BY ITS PRINCIPAL SECRETARY, DEPARTMENT OF URBAN DEVELOPMENT, 4TH FLOOR, VIKAS SOUDHA, AMBEDKAR VEEDHI, BENGALURU-560 001 Digitally signed by GAVRIBIDANUR SUBRAMANYA GUPTA SREENATH Location: HIGH COURT OF KARNATAKA … PETITIONERS 2. BRUHATH BENGALURU MAHANAGARA PALIKE N.R.SQUARE, - 2 - NC: 2025:KHC:21543 WP No. 52333 of 2018 HC-KAR BENGALURU-560 002 REP BY ITS COMMISSIONER 3. JOINT DIRECTOR TOWN PLANNING (NORTH) BRUHAT BENGALURU MAHANAGARA PALIKE N.R.SQUARE, BENGALURU-560 002
Legal Reasoning
(BY SMT.SPOORTHY V.,HCGP FOR R-1; SRI.ASHWIN S.HALADY.,ADVOCATE FOR R2 & R-3) …RESPONDENTS THIS W.P IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE DEMAND NOTICE DTD 5.11.2018 [ANNEXURE-A] ISSUED BY THE R-2 BBMP, SO FAR IT RELATES TO CLAIM MADE FOR PAYMENT OF GROUND RENT IS CONCERNED ETC., THIS PETITION, COMING ON FOR PRELIMINARY HEARING 'b' GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE SACHIN SHANKAR MAGADUM ORAL ORDER The petitioners are seeking for the following reliefs: i) Issue a writ of Certiorari or any other appropriate writ or order or direction, quashing the Demand Notice dated 05.11.2018 bearing No BBMP/Addl.Dir/JD WNorth/LP/0437/2011-12 (Annexure-A) issued by the Respondent No.2, BBMP, so far as it relates to claim made for payment of Ground Rent is concerned; ii) Issue a writ of Mandamus or any other appropriate writ, order or direction, directing Respondent No.2 - 3 - NC: 2025:KHC:21543 WP No. 52333 of 2018 HC-KAR BBMP and Respondent No.3 to refund the amount of Rs.10,84,008/- (Rupees Ten Lakhs Eighty Four Thousand and Eight) which was demanded from the Petitioner towards Ground Rent as a pre-requisite condition for issuance of Sanctioned plan and Licence bearing No.BBMP/Addl.Dir/JD North/0437/2011-12 dated 21.09.2017 in Annexures-K, and collected from the Petitioners in relation to building constructed on the schedule property, or to adjust the said amount towards other lawful claims, charges taxes, fees, etc., legally payable by the Petitioners in respect of schedule property and/or the projects to be undertaken in it, in future; Pass such other order/s as this Hon'ble Court deems fit to grant, in the interest of justice and equity. Issue a writ of Certiorari or any other appropriate writ or order direction, quashing the Revised Demand Notice dated 08.01.2019 beari No. BBMP/Addl.Dir.JD NORTH/LP/0437/2011-12 at Annexure-L issued by the Respondent No.3, in so far as it relates to claim made for payment of Ground Rent is concerned. iii) iv) 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.36017/2018 and connected matters. The Co-ordinate Bench, while deciding the issue, has held that the bye-laws under which - 4 - NC: 2025:KHC:21543 WP No. 52333 of 2018 HC-KAR Ground Rent, License Fee, Building License fee, Scrutiny fee are levied are ultra vires the Act. The Co-ordinate Bench also quashed the circular dated 04.09.2015 and Government circulars dated 27.01.2017 and 30.03.2017. Therefore, this Court deems it fit to cull out the operative portion of the order, which reads as under; "O R D E R
Decision
a) All the Writ Petitions are allowed. b) The bye-laws under which Ground Rent, Licence Fee, Building Licence Fee, Scrutiny Fee, Security Deposit are all held ultravires the Act and are resultantly rendered unenforceable. c) The Circular bearing No.ºÉ¤£ÀAiÉÆÃ/eÉ.r(G)/rJªÀiï3/¦Dgï/320/2015- 16 dated 04.09.2015 stands quashed. d) The Circular bearing No.£ÀCE 36 ¨ÉªÀÄ¥Áæ 2016 (¨sÁUÀ) dated 27.01.2017 and the Circular bearing No. ºÉ¤£ÀAiÉÆÃ/¦Dgï/1533/2016-17 dated 30.03.2017 demanding Lake Rejuvenation Fee are quashed. - 5 - NC: 2025:KHC:21543 WP No. 52333 of 2018 HC-KAR e) Imposition of labour cess under the Welfare Cess Act is upheld, but its demand for payment upfront in terms of Government Orders dated 18.01.2007 and 28.02.2007 stands quashed. f) The State or the BBMP is not precluded from bringing in the impugned levies under the provisions of the Act or the Rules by making suitable amendments to the Act and the Rules. 368. g) Petitioners in all these petitions who have deposited certain amounts in terms of the interim order passed by this Court before this Court are entitled to refund of the amounts so deposited. h) Insofar as refund in other cases who have paid to the Corporation under protest, they shall be entitled to such refund only if the same is not collected from the consumers of the apartments, businesses as the case would be. i) Insofar as all other payments made, they would all be at liberty to give representation to the BBMP and the BBMP would consider the refund of the amounts, in accordance with law and the findings of this Court. j) If representations are made by the petitioners for refund, the BBMP shall pass appropriate - 6 - NC: 2025:KHC:21543 WP No. 52333 of 2018 HC-KAR orders within 12 weeks from the date of such representations. In view of disposal of the petitions, all pending Interlocutory Applications also stand disposed." 3. In the considered view of this Court, the issues raised in the present writ petition stand squarely covered by the authoritative pronouncement rendered by the Co- ordinate Bench of this Court in W.P.No.36017/2018 and connected matters. The Co-ordinate Bench, after examining the statutory framework and the impugned levy mechanisms adopted by the BBMP, categorically held that the imposition of Ground Rent, Licence Fee, Building Licence Fee, Scrutiny Fee, and Security Deposit lacked statutory sanction and were ultra vires the Karnataka Municipal Corporations Act, 1976. The Co-ordinate Bench further held that Clause 3.8 of the BBMP Building Bye- laws, 2003, which provided for imposition of Ground Rent, was also devoid of legal authority and consequently struck it down. The Court also quashed the impugned Circular dated 04.09.2015 issued by respondent No.4, as well as - 7 - NC: 2025:KHC:21543 WP No. 52333 of 2018 HC-KAR the Government Orders dated 27.01.2017 and 30.03.2017, which had directed collection of such fees without statutory backing. With specific reference to labour welfare cess, the Co-ordinate Bench upheld the competence of the State to levy the cess under the Building and Other Construction Workers’ Welfare Cess Act, 1996, but set aside the directive mandating its upfront collection through Government Orders dated 18.01.2007 and 28.02.2007, thereby rendering the demand raised in anticipation of sanction of building plans unlawful. The Co-ordinate Bench also clarified that the only charging provision available under the Act was sub- section (20-b) of Section 423, which merely enabled collection of fees for services relating to burial grounds and crematoria, and could not be relied upon for the imposition of unrelated charges such as ground rent or scrutiny fee. In light of these clear and binding findings, the controversy raised in the present writ petition does not survive for independent adjudication, as the grievance of - 8 - NC: 2025:KHC:21543 WP No. 52333 of 2018 HC-KAR the petitioner is directly addressed and resolved by the said judgment. Therefore, this Court is of the considered opinion that the present writ petition deserves to be allowed by applying the ratio and operative portion of the judgment rendered in W.P.No.36017/2018 and connected matters. 4. In view of the above, this Court proceeds to pass the following; ORDER i) ii) The writ petition is allowed. The impugned demand notice dated 05.11.2018 issued by respondent No.2 as per Annexure-A and revised demand notice dated 08.01.2019 issued by respondent No.3 as per Annexure- L are hereby set-aside. iii) Petitioner shall submit a representation seeking refund of excess fee paid. Respondent- BBMP shall consider the same and pass - 9 - NC: 2025:KHC:21543 WP No. 52333 of 2018 HC-KAR appropriate orders in accordance with law. Respondent- BBMP shall accomplish this exercise within 8 weeks of the representation being submitted, Pending applications, if any, are also disposed off. Sd/- (SACHIN SHANKAR MAGADUM) JUDGE GSS List No.: 2 Sl No.: 1