- 1 - HC-KAR NC: 2025:KHC:21888 WP No. 3745 of 2023 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. 3745 OF 2023 (LB-BMP) BETWEEN: MR.HASEEB UR RAHEMAN S/O ABDUL BASHEER, AGED ABOUT 51 YEARS, R/AT NO 295, THIMMAIAH ROAD, BENGALURU - 560 051 …PETITIONER (BY SRI. YADUNANDAN N.,ADVOCATE) AND: 1. THE STATE OF KARNATAKA REP BY ITS SECRETARY, URBAN DEVELOPMENT DEPARTMENT, 4TH FLOOR, VIKAS SOUDHA, DR AMBEDKAR VEEDHI, BENGALURU 560 001 2. THE BRUHAT BENGALURU MAHANAGARA PALIKE N R SQUARE, BENGALURU 560 002 3. THE ASST. DIRECTOR TOWN PLANNING (EAST), UTILITY BUILDING-22 FLOOR, MAYOHALL, M G ROAD, BENGALURU …RESPONDENTS (BY SRI.BOPANNA.B .,AGA FOR R-1; SRI.B.L.SANJEEV., ADVOCATE FOR R-2 & R-3) THIS WP IS FILED UDNER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE DEMAND Digitally signed by GAVRIBIDANUR SUBRAMANYA GUPTA SREENATH Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:21888 WP No. 3745 of 2023 NOTICE BEARING NO. BBMP/EODB/CH/47294/22-23 DATED 19/01/2023 ANNEXURE-E AS DEMAND OF RS.1,55,315/- (ONE LAKH FIFTY FIVE THOUSAND THREE HUNDRED AND FIFTEEN ONLY) AND DEMAND NOTICE BBMP/EODB/CH/47292/22-23 DATED 30/01/2023 PRODUCED AT ANNEXURE-F ISSUED BY THE R-2 IN SO FAR AS THE DEMAND OF RS. 3,26,443/- (THREE LAKHS TWENTY SIX THOUSAND FOUR HUNDRED FORTY THREE ONLY) WITH 18 PERCENT INTEREST ON THE GROUND RENT AND SCRUTINY FEE OF RS.17,605/- (SEVENTEEN THOUSAND SIX HUNDRED FIVE ONLY). THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE SACHIN SHANKAR MAGADUM ORAL ORDER The petitioner is seeking for the following reliefs: a) Issue a Writ in the nature of Certiorari or similar Writ or order or direction to quash the demand notice bearing No. BBMP/EODB/ CH/47294/22-23 dated. 19th Jan, 2023 Annexure-E as demand of Rs.1,55,315/- (One Lakh Fifty Five Thousand Three Hundred and Fifteen Only) and Demand Notice : BBMP/EODB/CH/47292/22-23 dated 30th Jan 2023 produced at Annexure -F issued by the Respondent No.2 in so far as the demand of Rs.3,26,443/- (Three Lakhs Twenty Six Thousand Four Hundred Forty Three Only) with 18% interest on the ground rent and Scrutiny fee of Rs. 17,605/- (Seventeen Thousand Six Hundred Five Only). - 3 - HC-KAR NC: 2025:KHC:21888 WP No. 3745 of 2023 b) Issue a Writ in the nature of mandamus directing the respondents to consider the collection of license fee, Security Deposit, Lake Rejuvenation Fee, Compound Wall Fee, etc., in an exorbitant scale as demanded in Annexure -F. c) Issue a Writ of Mandamus or any other appropriate Writ or order or direction declaring that Bye-law No.3.9 in the Bengaluru Mahanagara Palike Building Bye-laws, 2003 as unconstitutional, arbitrary, illegal and ultravires. d) Issue a Writ of Mandamus or similar Writ or order of direction directing the respondent No. 2 and 3 to issue sanctioned plan without insisting for payment of Rs.3,26,443/- (Three Lakhs Twenty Six Thousand Four Hundred Forty Three Only) with 18% interest on the ground rent and Scrutiny fee of Rs. 17,605/- (Seventeen Thousand Six Hundred Five Only) and other charges as demanded exorbitantly therein. e) Issue any other appropriate Writ or order of direction as deemed fit in the circumstances of the case in the interest of justice and equity. - 4 - HC-KAR NC: 2025:KHC:21888 WP No. 3745 of 2023 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. - 5 - HC-KAR NC: 2025:KHC:21888 WP No. 3745 of 2023 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. 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 - 6 - HC-KAR NC: 2025:KHC:21888 WP No. 3745 of 2023 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, 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 - 7 - HC-KAR NC: 2025:KHC:21888 WP No. 3745 of 2023 (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. 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 - 8 - HC-KAR NC: 2025:KHC:21888 WP No. 3745 of 2023 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; ORDER i) The writ petition is allowed. ii) The impugned demand notices dated 19.01.2023 and 30.01.2023 issued by - 9 - HC-KAR NC: 2025:KHC:21888 WP No. 3745 of 2023 respondent No.3 as per Annexures-E & F respectively, are hereby set-aside. iii) Respondent- BBMP hereby directed to issue fresh/modified plan as the case may be. iv) Respondent- BBMP is 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 to the outcome of any appeal that may be filed by the BBMP against the judgment. - 10 - HC-KAR NC: 2025:KHC:21888 WP No. 3745 of 2023 Pending applications, if any, are also disposed off. Sd/- (SACHIN SHANKAR MAGADUM) JUDGE GSS List No.: 2 Sl No.: 10