- 1 - NC: 2025:KHC:7555 WP No. 4944 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 20TH DAY OF FEBRUARY, 2025 BEFORE THE HON'BLE MR JUSTICE N S SANJAY GOWDA WRIT PETITION NO. 4944 OF 2023 (LB-TAX) BETWEEN: 1. VR DAKSHIN PVT LTD (FORMERLY MS. SUGAM VANIJYA HOLDINGS PVT. LTD.), A PRIVATE LIMITED COMPANY, INCORPORATED UNDER THE COMPANIES ACT AND HAVING ITS REGISTERED OFFICE AT- 408, 2ND FLOOR, BALUS MANSION, 3RD CROSS, SINGAYANA PALYA, WHITE FIELD ROAD, MAHADEVAPURA BANGALORE. REPRESENTED BY ITS AUTHORISED SIGNATORY/ DEPUTY G.M, MR. VISHAL SINGH …PETITIONER (BY SRI. ADITYA SONDHI., SENIOR COUNSEL FOR SRI. AIYAPPA K.G., ADVOCATE) AND: 1. BRUHAT BENGALURU MAHANAGARA PALIKE REPRESENTED BY ITS COMMISSIONER N.R.SQUARE, HUDSON CIRCLE BENGALURU 560 002 2. JOINT COMMISSIONER, BBMP MAHADEVAPURA WARD, WHITEFIELD MAIN ROAD, BENGALURU - 560 048. 3. ASSISTANT REVENUE OFFICER, BBMP MAHADEVAPURA WARD, Digitally signed by KIRAN KUMAR R Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC:7555 WP No. 4944 of 2023 WHITEFIELD MAIN ROAD, BENGALURU - 560 048. …RESPONDENTS (BY SRI. KARTHIKEYAN B S., ADVOCATE) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASHING AND SETTING ASIDE THE IMPUGNED NOTICE BEARING NO.ARO/KR Pura/PR/292/2022-23 DATED 17.02.2023 ISSUED BY ASSISTANT REVENUE OFFICER, BBMP(RESPONDENT NO.3)(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. This writ petition is filed challenging the demand notice whereby the BBMP was calling upon the petitioner to pay a sum of Rs.20,84,63,449/- (Rupees Twenty Crore Eighty Four Lakhs Sixty Three Thousand Four Hundred Forty Nine) as arrears of property tax. 2. During the pendency of this writ petition, an order was passed on 15.11.2024 in the following terms: - 3 - NC: 2025:KHC:7555 WP No. 4944 of 2023 “ORAL ORDER Sri. Aditya Sondhi, the learned Senior counsel, while inviting this Court's attention to the previous orders, submits that the petitioner has deposited a sum of Rs.9,46,84,904/- under One Time Settlement pursuant to the permission granted by this Court and subject to the adjustment that should be towards Future Taxes if it is ascertained that the petitioner is called upon to pay higher under such Scheme. The learned Senior counsel submits that the dispute is over a demand that at the best could be about Rs.3,10,00,000/- and this dispute could be resolved if the second respondent - the Joint Commissioner, BBMP - who has exercised the powers of revision after the Appellate Authority's order in favour of the petitioner, could place on record [a] the penalty and the interest component in the demand in a sum of Rs.9,46,84,904/-, and [b] the assessment that would relate to the period when the construction was underway. The learned Senior counsel emphasizes that when the construction was underway, the petitioner could not be called upon to pay taxes on the - 4 - NC: 2025:KHC:7555 WP No. 4944 of 2023 building and its liability would only be limited to the sital area. Sri. B. S. Karthikeyan, a learned standing counsel for the BBMP and its Officers, is categorical that he will secure instructions on these specifics from the second respondent in writing by the next date of hearing. To enable the same, the office is directed, after informing Sri. Aditya Sondhi and Sri. B.S. Karthikeyan, to list this petition on 27.11.2024. The petitioner's representative shall visit the second respondent - the jurisdictional Joint Commissioner, BBMP on 20.11.2024 and 21.11.2024 for any clarification that may be required. The interim order granted earlier is extended to be in force until the next date of hearing”. 3. Pursuant to the said order, the BBMP has now passed an order on 24.01.2025, in which it has taken note of the fact that the petitioner has availed the One Time Settlement scheme and has made payment of the property tax and, as a result of the terms of the OTS, - 5 - NC: 2025:KHC:7555 WP No. 4944 of 2023 penalty was not leviable and the penalty of Rs.86,70,180/- that had been collected from the petitioner would be adjusted for the future property taxes payable by the petitioner. 4. In view of the above, it is clear that the claim regarding the payment of property tax and penalty has come to an end. 5. However, learned Senior counsel submits that the BBMP while passing the order on 24.01.2025 has come to the conclusion that the petitioner would still be liable to pay property tax for the year 2015-16, during which period, the petitioner contends that the construction was still underway. 6. The BBMP, however, contends that the construction was completed in as much as an occupancy certificate had already been granted. - 6 - NC: 2025:KHC:7555 WP No. 4944 of 2023 7. Learned Senior Counsel submits that this portion of the order the petitioner intends to challenge and therefore liberty will be reserved to it. 8. As requested, the petitioner is granted liberty to challenge the order dated 24.01.2025 insofar as it relates to the finding that the petitioner would be liable to pay the property tax even for the year 2015-16. 9. Learned Senior counsel also highlights the fact that the interest component of Rs.1.22 crores, which was paid by the petitioner has not been considered in the order dated 24.01.2025. 10. A perusal of the order would also indicate that the permissibility of the BBMP to collect interest has not been considered. 11. In that view of the matter, the petitioner is permitted to give a representation regarding his claim for refund of the interest paid and, if such a - 7 - NC: 2025:KHC:7555 WP No. 4944 of 2023 representation is made, the Joint Commissioner shall consider the same and pass appropriate orders regarding the claim of the petitioner for refund of the interest component. 12. This exercise shall be undertaken and completed within a period of four weeks from the date on which the petitioner were to submit a claim. 13. This writ petition is accordingly disposed of. 14. 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.: 15