- 1 - HC-KAR NC: 2025:KHC:21545 WP No. 9713 of 2020 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. 9713 OF 2020 (LB-BMP) BETWEEN: M/S SRI BALAJI GROUP A PARTNERSHIP FIRM HAVING ITS OFFICE AT SY NO.48 KODIGEHALLI VILLAGE K R PURAM HOBLI BANGALORE EAST TALUK BENGALURU -560 036 REP BY ITS MANAGING PARTNER MR G DEVARAJULU S/O LATE SRI RAMACHANDRA NAIDU G AGED ABOUT 34 YEARS …PETITIONER (BY SRI. RAJU S.,ADVOCATE) AND: 1. STATE OF KARNATAKA REPRESENTED BY ITS SECRETARY URBAN DEVELOPMENT DEPARTMENT 4TH FLOOR VIKAS SOUDHA DR AMBEDKAR VEEDHI BENGALURU -560 001 2. STATE OF KARNATAKA DEPARTMENT OF LABOUR VIKASA SOUDHA BENGALURU -560 001 REPRESENTED BY ITS SECRETARY Digitally signed by GAVRIBIDANUR SUBRAMANYA GUPTA SREENATH Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:21545 WP No. 9713 of 2020 3. THE BRUHAT BENGALURU MAHANAGARA PALIKE N R SQUARE BENGALURU -560 002 REPRESENTED BY ITS COMMISSIONER 4. ASSISTANT DIRECTOR (TOWN PLANNING MAHADEVAPURA) RHB COLONY WHITEFIELD MAIN ROAD, BENGALURU -560 048 …RESPONDENTS (BY SMT.SPOORTHY V., HCGP FOR R-1 & R2; SRI.SANJEEV B.L., ADVOCATE FOR R-3 & R4) THIS WP IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE DEMAND NOTICE DATED 08.07.2020 AT ANNEXURE-C ISSUED BY THE R-4 IN SO FAR AS THE DEMAND OF RS.50,387/- TOWARDS SCRUTINY FEE, RS.10,07,737/- TOWARDS LICENSE FEE, RS.5,94,565/- TOWARDS GROUND RENT AND GST, RS.11,19,708/- TOWARDS SECURITY DEPOSIT AND ALSO INSOFAR AS THE CONSTRUCTION WORKERS WELFARE CESS OF RS.17,803/- IS CONCERNED ETC., THIS PETITION, COMING ON FOR PRELIMINARY HEARING 'B' GROUP 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: i) Issue a writ of certiorari or similar writ or order or direction to quash the demand notice bearing No. BBMP/Addl.Com/MDP/0074/20-21 dated 08.07.2020 at ANNEXURE-C issued by the respondent No.4 in so far as the demand of Rs.50,387/- towards Scrutiny Fee, Rs. 10,07,737/- - 3 - HC-KAR NC: 2025:KHC:21545 WP No. 9713 of 2020 towards License Fee, Rs.5,94,565/- towards Ground Rent and GST, Rs.11,19,708/- towards security deposit and also insofar as the Construction Workers Welfare cess of Rs. 17,803/- is concerned ii) Issue Writ of Certiorari quashing the Government Order issued by the 2nd Respondent bearing G.O.No.LD 300 LET 2006 dated 18/01/2007 and the corrigendum bearing No. LD 300 LET 2006 dated 28.02.2007 directing upfront collection of labour welfare cess, as contained in ANNEXURE-D. iii) Issue a writ of Mandamus or any other appropriate writ or order or direction declaring that Bye-law No.3.9 in the Bangalore Mahanagara Palike Building Bye-laws, 2003 framed under the Karnataka Municipal Corporations Act as unconstitutional, arbitrary, illegal and ultravires; iv) Issue writ of mandamus or similar writ or order or direction directing the respondent Nos. 3 and 4 to issue building plan and license pursuant to the communication bearing No. BBMP/Addl.com /MDP/0074/20-21 dated 08-07-2020 at ANNEXURE-C issued by the respondent No.4 without insisting for payment of amount mentioned above. - 4 - HC-KAR NC: 2025:KHC:21545 WP No. 9713 of 2020 v) Issue any other appropriate writ or order or direction deemed fit in the circumstances of the case in the interest of justice and equity. 2. The Co-ordinate Benches of this Court, in W.P.No.23086/2022 and connected matters(herein referred to as “M/s Sapthagiri Shelters”) as well as W.P.No.36017/2018 and connected matters(herein referred to as “Sunderam Shetty”), have comprehensively adjudicated the issue involved and settled the controversy. In Sunderam Shetty and connected cases, the Co- ordinate Bench declared the levies of Ground Rent, License Fee, Building License Fee, and Scrutiny Fee under the relevant bye-laws as ultra vires the Act and quashed the Government Circulars dated 04.09.2015, 27.01.2017, and 30.03.2017 and similarly, in M/s Sapthagiri Shelters and connected matters, the Co-ordinate Bench struck down the Karnataka Act No.01 of 2022 and Karnataka Act No.37 of 2024, holding that linking fees under Rule 37-A of the Karnataka Planning Authority Rules, 1965 to market/guidance value under Section 45-B of the - 5 - HC-KAR NC: 2025:KHC:21545 WP No. 9713 of 2020 Karnataka Stamp Act, 1957 is illegal. It further quashed all related Circulars and declared Clause 3.8 of the BBMP Building Bye-laws, 2003, pertaining to Ground Rent, as invalid. 3. The issues raised in the present writ petition are squarely covered by the above binding decisions, wherein the relevant bye-laws and government circulars have been set aside. 4. In light of the authoritative pronouncements, the present petition does not warrant separate adjudication and is liable to be allowed in terms of the operative directions issued in the aforesaid writ petitions. 5. Accordingly, this Court proceeds to pass the following: ORDER i) The writ petition is allowed. ii) The impugned demand notice dated 08.07.2020 issued by respondent - 6 - HC-KAR NC: 2025:KHC:21545 WP No. 9713 of 2020 No.4 as per Annexure-C is hereby set- aside. iii) Respondent - BBMP is hereby directed to issue fresh/modified plan as the case may be. iv) Respondent - BBMP is 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 of the 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 subject to the outcome of any appeal that may be - 7 - HC-KAR NC: 2025:KHC:21545 WP No. 9713 of 2020 filed by the BBMP against the said judgment. Pending applications, if any, are also disposed off. Sd/- (SACHIN SHANKAR MAGADUM) JUDGE GSS List No.: 2 Sl No.: 3