- 1 - NC: 2025:KHC:7130 WP No. 31599 of 2016 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 18TH DAY OF FEBRUARY, 2025 BEFORE THE HON'BLE MR JUSTICE N S SANJAY GOWDA WRIT PETITION NO. 31599 OF 2016 (LB-RES) BETWEEN: 1. M/S SAI LAKHSMI INDUSTRIES PRIVATE LIMITED # 77, VANI VILAS ROAD, BASAVANAGUDI, BANGALORE 560004 REPRESENTED BY ITS POWER OF ATTORNEY HOLDER AUBERGINE PORJECTS PVT LTD A COMPANY INCORPORATED UNDER THE COMPANIES ACT 1996, HAVING ITS REGISTERED OFFICE AT NO.1, G C ROAD, ULSOOR BANGALORE-560042 REPRESENTED BY ITS AUTHORIZED SIGNATORY, ANTHONY GEORGE KUNNEL 2. AUBERGINE PROPERTIES PVT LTD A COMPANY INCORPORATED UNDER THE COMPANIES ACT, 1996 HAVING ITS REGISTERED OFFICE AT NO.11, G C ROAD, ULSOOR BANGALORE-560042 REPRESENTED BY ITS AUTHORIZED SIGNATORY ANTHONY GEORGE KUNNEL …PETITIONERS (BY SRI. MANJU.M.SUBBAIAH., FOR ANUP.S.SHAH LAW FIRM., ADVOCATE) AND: 1. KANNAMANGALA VILLAGE PANCHAYAT, BIDARAHALLI HOBLI, BANGALORE EAST TALUK, BANGALORE-560067 Digitally signed by KIRAN KUMAR R Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC:7130 WP No. 31599 of 2016 2. THE DEVELOPMENT OFFICER KANNAMANGALA VILLAGE PANCHAYAT, BIDARAHALLI HOBLI, BANGALORE EAST TALUK, BANGALORE-560067 3. KARNATAKA INDUSTRIAL AREA DEVELOPMENT BOARD 14/3, RASTHROTHAN BUILDING, NEAR RESERVE BANK, NRUPATHUNGA ROAD, BENGALURU-560001 REPRESENTED BY ITS DEVELOPMENT OFFICER 4. KARNATAKA UDYOG MITRA 49, KHANIJA BHAVAN, RACECOURSE ROAD, BENGALURU, KARNATAKA-560001 5. RURAL DEVELOPMENT AND PANCHAYAT RAJ DEPARTMENT 3RD GATE, 3RD FLOOR, MS BUILDING BANGALORE-560001 REPRESENTED BY ITS ADDITIONAL CHIEF SECRETARY 6. STATE OF KARNATAKA REPRESENTED BY SECRETASRY, DEPARTMENT OF INDUSTRY AND COMMERCE, NO.49, SOUTH BLOCK, KHANIJA BHAVANA RACE COURSE ROAD, BENGALURU-560001 …RESPONDENTS (BY SRI. A.NAGARAJAPPA., ADVOCATE FOR R-1 & R-2; SRI. P.V.CHANDRASHEKAR., ADVOCATE FOR R-3; SMT. PRATHIMA HONNAPURA., ADDITIONAL ADVOCATE GENERAL ALONGWITH SMT. SPOORTHI.V., HCGP FOR R-4 TO R-6) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE - 3 - NC: 2025:KHC:7130 WP No. 31599 of 2016 IMPUGNED SHOW CAUSE NOTICE / ORDER DATED:30.9.2015 AT ANNEXURE-A, ETC. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE N S SANJAY GOWDA ORAL ORDER 1. The prayer in this petition is for quashing of a notice dated 30.09.2015 and a further notice dated 11.01.2016, the copies of which are produced at Annexure – A and AE. 2. By Annexure – A, the Panchayat has informed petitioner No.1 – M/s Sai Lakshmi Industries Private Limited, that it was required to secure license from the Panchayat to erect the industrial structure. 3. By Annexure – AE, the Panchayat has called upon the petitioners to remit certain taxes and, thereafter, seek for approval of the building plans. - 4 - NC: 2025:KHC:7130 WP No. 31599 of 2016 4. It is not in dispute that the lands in question were acquired under the provisions of the Karnataka Industrial Areas Development Act (the KIAD Act) and the petitioners were allotted the plot by the KIADB. 5. The State Government has filed an affidavit, in which it is stated as follow: “3. The committee meeting was convened on 06.05.2024 and, after detailed deliberations, it was resolved to recommend the issuance of a Government Order. Consequently. Government Order No. CI 652 SPA 2023, dated 01.06. 2024, was issued with the approval of the Hon’ble Chief Minister. The Government Order stipulates the following: i."KIADB is the authority to issue building plan/permissions to individual units within industrial areas/estates and SUC's under the delegated powers to KIADB, subject to strict adherence to Town Planning Building Regulations and Bye-laws. In this regard, RDPR and UDD to issue the necessary Government Orders/Circulars and KIADB to take approval of the building regulations from - 5 - NC: 2025:KHC:7130 WP No. 31599 of 2016 the Town Planning Authority as single authority to ensure compliance of local bye-laws." ii. "On the same lines, KSSIDC should be the building plan approval authority for the industrial estates developed by them." On 03.06.2024, the Advocate General presented these details to the Hon'ble High Court, which acknowledged the submissions and supporting records. The Hon'ble High Court upheld that: "The KIADB is the competent authority to issue building plans/permissions to individual units within industrial areas, estates, and SUCs under its delegated powers." Further "insofar as any industrial area or industrial estate or a single unit complex approved by the KIADB, it is the KIADB who will be the sanctioning authority in respect of development plan, layout plan, building plan, commencement certificate, occupancy certificate, etc., relating to that particular building or buildings. It would also be for the KIADB to take action against any violation of the concerned Building bylaws and/or permissions issued by KIADB in respect of such building or buildings." - 6 - NC: 2025:KHC:7130 WP No. 31599 of 2016 Furthermore, the Court directed the State to inform all Panchayats, Municipal Authorities, Municipalities, Municipal Corporations, and other local bodies that they do not have the power to sanction development plans, layout plans, building plans, commencement certificates, occupancy certificates, etc., in areas designated as industrial areas, estates, or SUCs approved by the KIADB. Additionally, KSSIDC shall be the building plan approval authority for the industrial estates developed by KSSIDC. 4. Therefore, in view of the order dated 03.06.2024, passed by the Hon'ble High Court in W.P. No. 8685/2015, it is hereby confirmed that the KIADB holds the authority to issue building plans, development plan, layout plan, commencement certificate, occupancy certificate. etc., and permissions within industrial areas, estates, and SUCs under its delegated powers. Similarly, the KSSIDC is designated as the building plan approval authority for the industrial estates developed by the KSSIDC. Accordingly Rural Development and Panchayat Raj Department has issued the Circular No.RDP 279 GPA 2024, Dated:16.07.2024 to all the Zilla Panchayats, - 7 - NC: 2025:KHC:7130 WP No. 31599 of 2016 Taluk Panchayats and Grama Panchayats wherein it is clearly instructed that the KIADB & KSSIDC are the competent Authorities to issue the license/permission, Completion Certificate with regard building construction and occupancy certificate to the buildings which are proposed to built in the KIADB & KSSIDC industrial estate/area. Further, it is also informed that the Grama Panchayats are not the competent authorities for issuing the above mentioned Certificate”. 6. In the light of the said affidavit, it is clear that the Government has clarified that the Panchayats did not have the competence for according approvals for erecting structures on the industrial layouts and the appropriate authority would be the KIABD or the Karnataka State Small Industries Development Corporation ( The KSSIDC). 7. In the light of the said affidavit, it is obvious that Annexure – A and AE cannot be sustained and they are accordingly quashed. - 8 - NC: 2025:KHC:7130 WP No. 31599 of 2016 8. If, however, the Panchayat has a right to collect any tax from the petitioners, liberty is reserved to the Panchayat to issue an appropriate notice and restricting the claim only to the payment of a tax. 9. This writ petition is accordingly allowed. 10. In view of the disposal of the petition, all pending interlocutory applications, if any, stand disposed of. Sd/- (N S SANJAY GOWDA) JUDGE GSR List No.: 1 Sl No.: 22