- 1 - HC-KAR NC: 2025:KHC:21885 WP No. 3962 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. 3962 OF 2023 (LB-BMP) BETWEEN: M/S HENNUR PROPERTIES LLP (EARLIER KNOWN AS M/S HENNUR PROPERTIES PRIVATE LIMITED) HAVING OFFICE AT NO 19 J C ROAD BENGALURU 560 002 REPRESENTED BY ITS GPA HOLDER M/S PRIDE AND EXPERT PROPERTIES PRIVATE LIMITED A COMPANY INCORPORATED UNDER THE COMPANIES ACT 1956 HAVING OFFICE AT PRIDE HULKUL NO 901 9TH FLOOR 116 LALBAGH ROAD BENGALURU 560 027 REPRESENTED BY ITS DIRECTOR SRI MURARILAL SARAOGI …PETITIONER (BY SRI.BADRI VISHAL H SRINIVAS RAO .,ADVOCATE) AND: 1. STATE OF KARNATAKA URBAN DEVELOPMENT DEPARTMENT VIDHANA SOUDHA BENGALURU - 560 001 REP. BY ITS UNDER SECRETARY 2. THE BRUHAT BENGALURU MAHANAGARA PALIKE N R SQUARE BENGALURU- 560 002 Digitally signed by GAVRIBIDANUR SUBRAMANYA GUPTA SREENATH Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:21885 WP No. 3962 of 2023 REP. BY THE COMMISSIONER 3. THE JOINT DIRECTOR TOWN AND COUNTRY PLANNING (NORTH) BRUHAT BENGALURU MAHANAGARA PALIKE N R SQUARE BENGALURU - 560 002 …RESPONDENTS (BY SRI.BOPANNA.B .,AGA FOR R-1; SRI.B.L.SANJEEV., ADVOCATE FOR R-2 & R-3) THIS WP IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO-DECLARE THAT THE ENTIRE KARNATAKA MUNICIPAL CORPORATIONS AND CERTAIN OTHER LAW (AMENDMENT) ACT, 2021 (KARNATAKA ACT NO.01 OF 2022) NOTIFIED ON 13/01/2022 PRODUCED AT ANNEXURE- A AS BEING ULTRA VIRES THE CONSTITUTION OF INDIA. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, 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. Declare that the entire Karnataka Municipal Corporations and Certain Other Law (Amendment) Act, 2021 (Karnataka Act No. 01 of 2022) notified on 13.01.2022 produced at ANNEXURE -A as being ultra vires the Constitution of India; b. Issue a Writ of Certiorari or any other appropriate Writ, order or direction quashing the Notification the Office Order No. bearing No. HaNiNaYo/PR/461/2021-22 dated 09.03.2022 - 3 - HC-KAR NC: 2025:KHC:21885 WP No. 3962 of 2023 issued by Respondent No. 2 produced at ANNEXURE - B; c. Issue a Writ of Certiorari or any other appropriate Writ, order or direction quashing the Demand Notice dated 07.02.2023 bearing No. BBMP /Addl.Dir/JDNROTH/LP/0451/2013-14 directing the Petitioner to deposit a sum of Rs. 1,35,35,000/-(Rupees One Crore, Thirty-Five Lakhs, Thirty-Five Thousand only) towards Ground Rent, GST on Ground Rent, Difference In FAR Area, Penalty for Club House constructed without obtaining CC, CC Fees, Scrutiny Fees, Licence Fees for issuance of Occupancy Certificate, insofar as imposition of Ground Rent, GST on Ground Rent, Scrutiny Fees, Licence Fees amounting to Rs. 1,23,11,339/- (Rupees One Crore, Twenty Three Lakhs, Eleven Thousand, Three Hundred and Thirty Nine only) is concerned issued by Respondent No. 3, produced at ANNEXURE - C d. Declare that the various fees levied on the basis of the guidance value of the property are all bad in law and unconstitutional; and e. Grant such other relief or reliefs as this Hon'ble Court may deem fit in the interest of justice and equity. - 4 - HC-KAR NC: 2025:KHC:21885 WP No. 3962 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:21885 WP No. 3962 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. - 6 - HC-KAR NC: 2025:KHC:21885 WP No. 3962 of 2023 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, 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 - 7 - HC-KAR NC: 2025:KHC:21885 WP No. 3962 of 2023 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. 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 - 8 - HC-KAR NC: 2025:KHC:21885 WP No. 3962 of 2023 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; ORDER i) The writ petition is allowed. ii) The impugned demand notice dated 07.02.2023 issued by - 9 - HC-KAR NC: 2025:KHC:21885 WP No. 3962 of 2023 respondent No.3 as per Annexure- C is hereby set-aside. iii) Respondent - BBMP is hereby directed to issue Occupancy Certificate in accordance with law in compliance of the construction strictly adhering to the approved building plan. iv) Respondent- BBMP is hereby directed to forthwith process the petitioner's application seeking occupancy certificate, strictly in accordance with law. v) It is made clear that the issuance of occupancy certificate shall not be withheld merely on the ground that the BBMP is contemplating to file an appeal against the reported judgment. vi) If occupancy certificate is 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:21885 WP No. 3962 of 2023 Pending applications, if any, are also disposed off. Sd/- (SACHIN SHANKAR MAGADUM) JUDGE GSS List No.: 2 Sl No.: 11