- 1 - HC-KAR NC: 2025:KHC:20947 WP No. 2446 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. 2446 OF 2025 (LB-BMP) BETWEEN: SMT. NANJAMMA B C W/O SRI. H. HANUMANTHARAYAPPA AGED ABOUT 74 YEARS R/AT NO.21, MAGADI MAIN RAOD BYADARAHALLI, VISWANEEDAM POST BENGALURU-560091. …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 PRL. SECRETARY. 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. Digitally signed by AL BHAGYA Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:20947 WP No. 2446 of 2025 4. THE ASSISTANT DIRECTOR OF TOWN PLANNING, BRUHAT BENGALURU MAHANAGARA PALIKE, RAJARAJESHWARI NAGAR, BENGALURU-560052 …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 QUASH THE NOTIFICATION ISSUED BY THE RESPONDENT NO.2 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: 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.2 bearing No.UDD 3 TTP 2015 dated 25/02/2020 (Annexure-D) insofar - 3 - HC-KAR NC: 2025:KHC:20947 WP No. 2446 of 2025 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 Respondent 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/EoDB/ CH/41781/24-25 dated 03/01/2025 issued by Respondent No.3 in so far as Labour Cess for a sum of Rs.11,95,619/-. 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/EoDB/CH / 41781/24-25 dated 03/01/2025 issued by - 4 - HC-KAR NC: 2025:KHC:20947 WP No. 2446 of 2025 Respondent No.3 in so far levy of ground rent for a sum of Rs.8,61,313/-. 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/EoDB/CH/ 41781/24-25 dated 03/01/2025 issued by Respondent No.3 in so far as Betterment fee of a sum of Rs.6,63,569/-, for building, Scrutiny Fee for a sum of Rs.46,450/- and License fee a sum of Rs.9,28,997/-: 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 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 equity. - 5 - HC-KAR NC: 2025:KHC:20947 WP No. 2446 of 2025 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 (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 - 6 - HC-KAR NC: 2025:KHC:20947 WP No. 2446 of 2025 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. (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, - 7 - HC-KAR NC: 2025:KHC:20947 WP No. 2446 of 2025 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, 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 - 8 - HC-KAR NC: 2025:KHC:20947 WP No. 2446 of 2025 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 present writ petition no longer survives for adjudication - 9 - HC-KAR NC: 2025:KHC:20947 WP No. 2446 of 2025 independently, as it is squarely covered by the binding judgment of the coordinate bench. In the light of the law laid down in 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 03.01.2025 issued by respondent No.3 as per Annexure-A is hereby set-aside. (iii) Respondent Nos.3 and 4 are hereby directed to issue fresh/modified plan as the case may be. (iv) Respondent Nos.3 and 4 are hereby directed to forthwith process the petitioner's application seeking building - 10 - HC-KAR NC: 2025:KHC:20947 WP No. 2446 of 2025 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 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 KLY