- 1 - HC-KAR NC: 2025:KHC:20940 WP No. 607 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 18TH DAY OF JUNE, 2025 BEFORE THE HON'BLE MR JUSTICE SACHIN SHANKAR MAGADUM WRIT PETITION NO.607 OF 2025 (LB-BMP) BETWEEN: 1. SEGU ENTERPRISES IT IS REGISTERED PARTNERSHIP FIRM OFFICE AT NO.31, SHRAVANEE KRISHNA MANSION, 2ND BLOCK, JAYANAGARA, BENGALURU-560011. REP BY ITS MANAGING PARTNER, SRI.SHASHIDHAR SEGU KRISHNA PRASAD S/O SEGU RADHA KRISHNA PRASAD, AGED ABOUT 50 YEARS, OFFICE AT NO.31, SHRAVANEE KRISHNA MANSION, 2ND BLOCK, JAYANAGARA, BENGALURU-560011. …PETITIONER (BY SRI. JNANESH KUMAR K., ADVOCATE) AND: 1. THE STATE OF KARNATAKA DEPARTMENT OF URBAN DEVELOPMENT, AMBEDKAR VEEDHI, VIKASA SOUDHA, BENGALURU-560001, REP BY ITS PRINCIPAL SECRETARY, Digitally signed by NAGARAJA B M Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:20940 WP No. 607 of 2025 2. THE STATE OF KARNATAKA, LABOUR DEPARTMENT, AMBEDKAR VEEDHI, VIKASA SOUDHA, BENGALURU-560001, REP BY ITS UNDER SECRETARY TO GOVERNMENT. 3. BRUHAT BENGALURU MAHANAGARA PALIKE, HUDSON CIRCLE, N.R.SQUARE, BENGALURU-560002, REP BY ITS COMMISSIONER. 4. THE ASSISTANT DIRECTOR OF TOWN PLANNING, BRUHAT BENGALURU MAHANAGARA PALIKE(WEST), MALLESHWARAM, BENGALURU-560003. …RESPONDENTS (BY SRI.BOPANNA B., AGA FOR R1 & R2 SRI. K.B.MONESH KUMAR., ADVOCATE FOR R3 & R4) THIS WP IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE AN ORDER, DIRECTION OR WRIT IN THE NATURE OF CERTIORARI QUASHING THE NOTIFICATION ISSUED BY THE RESPONDENT NO.1 BEARING NO. UDD 3 TTP 2015 DATED 25/02/2020 (ANNEXURE-D) INSOFAR AS THE INSERTED RULES 37-A AND 37-C ARE CONCERNED AND ETC. THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN B GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: - 3 - HC-KAR NC: 2025:KHC:20940 WP No. 607 of 2025 CORAM: HON'BLE MR JUSTICE SACHIN SHANKAR MAGADUM ORAL ORDER The captioned petition is filed seeking the following reliefs: a) Issue an order, direction or writ in the nature of certiorari quashing the notification issued by the respondent No.1 bearing No.UDD 3 TTP 2015 dated 25/02/2020 (Annexure-D) insofar as the inserted Rules 37-a and 37-c are concerned b) Grant an order, direction or writ in the nature of certiorari quashing the Government order bearing No.LD/300/LET/2006, issued by the Rspondent No.2 dated 18/01/2007 (Annexure-E) and the corrigendum order bearing No.LD/300/LET/2006, issued by the respondent No.2, dated 28/02/2007 (Annexure-F) mandating upfront collection of labour welfare cess in so far the petitioner. c) Issue a writ, order or direction in nature of a certiorari as regards the levy sought to be imposed by the impugned Demand Notice at Annexure-A bearing LP No.BBMP/Ad.Com./WST/0202/24-25 - 4 - HC-KAR NC: 2025:KHC:20940 WP No. 607 of 2025 dated 07/01/2025 issued by Respondent No.3 in so far as Labour Cess for a sum of Rs.1,52,000/-. d) Issue a writ, order or direction in nature of a Certiorari as regards the levy sought to be imposed by the Impugned Demand Notice at Annexure-A bearing LP No.BBMP/Ad.Com./WST/0202/24-25 dated 07/01/2025 issued by Respondent No.3 in so far levy of ground rent for a sum of Rs.7,81,541/-. e) Issue a writ, order or direction in nature of a certiorari as regards the levy sought to be imposed by the Impugned Demand Notice at Annexure-A bearing LP No.BBMP/Ad.Com./WST/0202/24-25 dated 07/01/2025 issued by Respondent No.3 in so far as Betterment fee of a sum of Rs.84,000/-, for building, Scrutiny Fee for a sum of Rs.41,148/- and License Fee a sum of Rs.8,42,957/-: f) Declare that the respondent Nos.3 and 4 (BBMP) have no authority to collect the taxes under the guise of collection of license fee cess and other fees under various heads based on arbitrary rates and values: g) Issue a writ in the nature of mandamus directing the respondent Nos.3 and 4 to collect fees as specified in - 5 - HC-KAR NC: 2025:KHC:20940 WP No. 607 of 2025 the Bengaluru Mahanagara Palike Building Bye Laws, 2003 only: h) And grant such other reliefs as this Hon'ble Court may deem fit to grant, based on the facts and circumstances of the case, in the interest of justice and equity. 2. 2. The Co-ordinate Benches of this Court, in W.P.No.23086/2022 and connected matters(herein referred to as “M/s Sapthagiri Shelters”) as well as W.P.No.36017/2018 and connected matters(herein referred to as “Sunderam Shetty”), have comprehensively adjudicated the issue involved and settled the controversy. 3. In Sunderam Shetty and connected cases, the Co-ordinate Bench declared the levies of Ground Rent, License Fee, Building License Fee, and Scrutiny Fee under the relevant bye-laws as ultra vires the Act and quashed the Government Circulars dated 04.09.2015, 27.01.2017, and 30.03.2017 and similarly, in M/s Sapthagiri Shelters and connected matters, the Co-ordinate Bench struck - 6 - HC-KAR NC: 2025:KHC:20940 WP No. 607 of 2025 down the Karnataka Act No.01 of 2022 and Karnataka Act No.37 of 2024, holding that linking fees under Rule 37-A of the Karnataka Planning Authority Rules, 1965 to market/guidance value under Section 45-B of the Karnataka Stamp Act, 1957 is illegal. It further quashed all related Circulars and declared Clause 3.8 of the BBMP Building Bye-laws, 2003, pertaining to Ground Rent, as invalid. 4. The issues raised in the present writ petition are squarely covered by the above binding decisions, wherein the relevant bye-laws and government circulars have been set aside. 5. In light of the authoritative pronouncements, the present petition does not warrant separate adjudication and is liable to be allowed in terms of the operative directions issued in the aforesaid writ petitions. Accordingly, this Court proceeds to pass the following: ORDER (i) The writ petition is allowed. - 7 - HC-KAR NC: 2025:KHC:20940 WP No. 607 of 2025 (ii) The impugned demand notice dated 07.01.2025 issued by respondent No.3 as per Annexure-A is hereby set-aside. Pending applications, if any, are also disposed off. Sd/- (SACHIN SHANKAR MAGADUM) JUDGE KLY