Writ Petition No. 28796 of 2024 · The High Court
Case Details
- 1 - NC: 2025:KHC:22845 WP No. 28796 of 2024 HC-KAR IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 27TH DAY OF JUNE, 2025 BEFORE THE HON'BLE MR JUSTICE SACHIN SHANKAR MAGADUM WRIT PETITION NO. 28796 OF 2024 (LB-BMP) BETWEEN: RAINBOWS INFRA REGISTERED UNDER COMPANIES ACT, 1956, OFFICE AT NO.69, AMMAN NILAYAM, PWD MAIN ROAD, B. NARAYANAPURA, BENGALURU-560 016. REPRESENTED BY ITS AUTHORIZED PERSON MR.S.DAMODARAM, S/O.SRI.S.CHINNASWAMY NAIDU, AGED ABOUT 50 YEARS. …PETITIONER (BY SRI. VISHWANATH H.M., ADVOCATE) AND: Digitally signed by AL BHAGYA Location: HIGH COURT OF KARNATAKA 1. STATE OF KARNATAKA REPRESENTED BY ITS SECRETARY, URBAN DEVELOPMENT DEPARTMENT, 4TH FLOOR, VIKAS SOUDHA, DR. AMBEDKAR VEEDHI, BENGALURU-560 001. 2. STATE OF KARNATAKA REPRESENTED BY ITS SECRETARY, DEPARTMENT OF PARLIAMENTARY AFFAIRS AND LEGISLATION, VIDHANA SOUDHA, DR. AMBEDKAR VEEDHI, BENGALURU-560 001. - 2 - NC: 2025:KHC:22845 WP No. 28796 of 2024 HC-KAR 3. THE COMMISSIONER, BRUHAT BENGALURU MAHANAGARA PALIKE, N.R. SQUARE, BENGALURU-560 002. 4. THE ASSISTANT DIRECTOR TOWN PLANNING – MAHADEVAPURA, BRUHAT BENGALURU MAHANAGARA PALIKE, RHB COLONY, WHITEFIELD MAIN ROAD, BENGALURU-560 048.
Legal Reasoning
(BY SRI. BOPANNA B., AGA FOR R1 & R2; SRI. K.B. MONESH KUMAR, ADVOCATE FOR R3 & R4) …RESPONDENTS THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA, PRAYING TO a. QUASH THE IMPUGNED DEMAND NOTICE DATED 24.09.2024, BEARING ISSUED BY 4TH NO.LPNO.BBMP/AD.COM/MDP/0648/24-25 RESPONDENT IN SO FAR IT RELATES DEMAND OF RS.19,389/ TOWARDS SCRUTINY FEE, RS.3,88,239/- TOWARDS LICENCE FEE, RS.65,347/- TOWARDS FEE U/S 18(1) OF KTCP ACT (BETTERMENT LEVY) FOR BUILDING, RS.1,80,444/- TOWARDS FEE U/S 18(1) OF KTCP ACT (BETTERMENT LEVY) FOR SITE, RS.3,26,736/- TOWARDS SECURITY DEPOSIT, RS.34,164/- TOWARDS LAKE REJUVENATION FEE, RS.10,158/- TOWARDS 1% OF LABOUR CESS AMOUNT TO BBMP, RS.2,29,061/- TOWARDS GROUND RENT (INCLUDING 9% CGST AND 9% SGST), RS.1,684/- TOWARDS COMPOUND WALL CHARGES, RS.23,352/- TOWARDS WATER SUPPLY CESS RS.23,352/- TOWARDS RING ROAD SURCHARGE, RS.11,676/- TOWARDS CESS FOR IMPROVEMENT OF SLUMS, RS.1,16,757/- TOWARDS MRTS 5% OF RS.9,218/- ADMINISTRATIVE CHARGES TO BBMP ON CESS AND SURCHARGE, MISCELLANEOUS CHARGES AND RS.5,98,044/- TOWARDS LABOUR CESS AMOUNT, PRODUCED AT ANNEXURE-A IN SO FAR AS PETITIONER CONCERNED AND ETC. SURCHARGE, RS.5,000/- TOWARDS TOWARDS - 3 - NC: 2025:KHC:22845 WP No. 28796 of 2024 HC-KAR THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN B-GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE SACHIN SHANKAR MAGADUM ORAL ORDER This petition is filed seeking the following reliefs:- “a. Quash the impugned demand notice dated 24.09.2024, bearing No.LPNo.BBMP/Ad.Com./ MDP/0648/24-25 issued by 4th respondent in so far it relates demand of Rs.19,389/- towards Scrutiny Fee, Rs.3,88,239/- towards Licence Fee, Rs.65,347/- towards Fee U/s 18(1) of KTCP act (Betterment Levy) for Building, Rs.1,80,444/- towards Fee U/s 18(1) of KTCP act (Betterment Levy) for Site, Rs.3,26,736/ towards Security Deposit, Rs.34,164/ towards Lake Rejuvenation Fee, Rs.10,158/- towards 1% of Labour cess amount to BBMP, Rs.2,29,061/- towards Ground Rent (including 9% CGST and 9% SGST), Rs.1,684/- towards Compound wall charges, Rs.23,352/- towards Water Supply Cess Rs.23,352/-towards Ring Road Surcharge, Rs.11,676/- towards Cess for Improvement of Slums, Rs.1,16,757/ towards MRTS Surcharge, Rs.9,218/- towards 5% of Administrative charges to BBMP on cess and - 4 - NC: 2025:KHC:22845 WP No. 28796 of 2024 HC-KAR surcharge, Rs.5,000/- towards Miscellaneous Charges and Rs.5,98,044/ towards Labour cess amount, produced at ANNEXURE-A, in so far as petitioner concerned. b. Quash the Karnataka Municipal Corporations and Certain Other Law (Amendment) Act, 2021 Act No.1/2022 dated 13.01.2022 enacted by the second Respondent published through notification bearing No. DPAL 50 SHASANA 2021 gazetted on 13.01.2022 at ANNEXURE-F declaring it to be ultra-vires and unconstitutional, in so far as petitioner concerned. c. Quash the office order bearing No. ADTP/PR/461/2021-22 dated 09.03.2022 issued by the third Respondent at ANNEXURE- G, in so far as petitioner concerned. d. Quash the Circular bearing No.He.Ni.Ka.Pa.Ko/P.R./320/2020-21 dated 14.08.2020 at ANNEXURE-H issued by the 3rd Respondent, in so far as petitioner concerned. e. Quash the provisions of section 18-A of Karnataka Town and Country Planning Act, 1961 brought into effect by Karnataka Act No.23 of 2004 by the 1st Respondent at ANNEXURE-J, in so far as 18-A (i) and (iv) of - 5 - NC: 2025:KHC:22845 WP No. 28796 of 2024 HC-KAR Karnataka Act No.23 of 2004 is concerned, in so far as petitioner concerned. f. Quash the Notification issued by the 1st Respondent bearing No. UDD 3 TPP 2015 dated 25.02.2020 as contained in ANNEXURE- K in so far as the amended Rule 37-A and Rule 37-C are concerned, in so far as petitioner concerned. g. Issue any other appropriate writ or order or direction to the Respondents deemed fit in the circumstances of the case in the interest 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). - 6 - NC: 2025:KHC:22845 WP No. 28796 of 2024 HC-KAR 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 (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 ‘Note’ found below TABLE I of Rule 37-A of the Karnataka Planning Authority Rules, 1965. - 7 - NC: 2025:KHC:22845 WP No. 28796 of 2024 HC-KAR (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. (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, - 8 - NC: 2025:KHC:22845 WP No. 28796 of 2024 HC-KAR 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 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. - 9 - NC: 2025:KHC:22845 WP No. 28796 of 2024 HC-KAR 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 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; - 10 - NC: 2025:KHC:22845 WP No. 28796 of 2024 HC-KAR ORDER (i) The writ petition is allowed. (ii) The impugned demand notice dated 24.09.2024 issued by respondent No.4 as per Annexure-A is hereby set-aside. (iii) Respondent Nos.3 and 4 - BBMP are hereby directed to issue fresh/modified plan as the case may be. (iv) Respondent Nos.3 and 4 - BBMP are hereby directed to forthwith process the petitioner's 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 file an appeal against the reported judgment. (vi) If the building license and sanction plan are issued, the same shall be subjected - 11 - NC: 2025:KHC:22845 WP No. 28796 of 2024 HC-KAR 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 NBM List No.: 2 Sl No.: 32