- 1 - HC-KAR NC: 2025:KHC:21858 WP No. 10845 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. 10845 OF 2020 (LB-BMP) BETWEEN: M/S MARVEL INFRABUILD PVT LTD A COMPANY REGISTERED UNDER THE PROVISIONS OF COMPANIES ACT 1956 AND HAVING ITS REGISTERED OFFICE AT SY.NO.213/3, VEERASWAMI REDDY LAYOUT, NEAR WHITEFIELD GLOBAL SCHOOL, CHANNASUNDRA MAIN ROAD, KADUGODI BENGALURU -560 067 KHATHEDAR KASTHURABA KANYA VIDHYALAYA, REP.BY ITS GENERAL POWER OF ATTORNEY HOLDER, MR.MADHAVA REDDY BADAM, AGED 41 YEARS. …PETITIONER (BY SRI. RAJU S.,ADVOCATE) AND: 1. STATE OF KARNATAKA REP 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, BENGLAURU-560 001. REP BY ITS SECRETARY. Digitally signed by GAVRIBIDANUR SUBRAMANYA GUPTA SREENATH Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:21858 WP No. 10845 of 2020 3. THE BRUHAT BENGALURU MAHANAGARA PALIKE N.R.SQUARE, BENGALURU-560 002 REP BY ITS COMMISSIONER. 4. THE JOINT DIRECTOR (BUILDING LICENSE DIRECTORY-NORTH) BRUHAT BENGALURU MAHANAGARA PALIKE, N.R.SQUARE, BENGALURU-560 002. …RESPONDENTS (BY SRI.H.K.KENCHEGOWDA .,AGA FOR R-1 & R-2; SMT.SINCHANA M., ADVOCATE FOR R-3 & R-4) THIS WRIT PETITION IS. FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE DEMAND NOTICE DTD.7.9.2020 VIDE ANEXURE-C ISSUED BY THE R-4 IN SO FAR AS THE DEMAND OF RS.19,00,862/- TOWARDS GROUND RENT, RS.3,42,155/- TOWARDS GST OF 18 PERCENT ON GROUND RENT, RS.10,54,619/- TOWARDS SECURITY DEPOSIT, RS.24,19,279/- TOWARDS LICENSE FEE, RS.1,20,964/- TOWARDS SCRUTINY FEE, RS.3,93,512/- TOWARDS WATER SUPPLY, RS.3,93,512/- TOWARDS RING ROAD, RS.1,96,756/- TOWARDS SLUM DEVELOPMENT, RS.9,83,780/- TOWARDS TRANSPORTATION CHARGES (MSRD) AND RS.15,19,000/- TOWARDS II KARNATAKA STATE BUILDING AND OTHER CONSTRUCTION WORKERS WELFARE BOARD LABOUR CESS IS CONCERNED ETC., THIS PETITION, COMING ON FOR HEARING ON I.A., THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE SACHIN SHANKAR MAGADUM - 3 - HC-KAR NC: 2025:KHC:21858 WP No. 10845 of 2020 ORAL ORDER The petitioner is seeking for the following reliefs: (a) Issue a writ of certiorari or similar writ or order or direction to quash the demand notice No.BBMP/Addl. Dir/JD North/LP/0093/2019-20 dated 07/09/2020 vide ANNEXURE-C issued by respondent No.4 in so far as the demand of Rs.19,00,862/ towards Ground Rent, Rs.3,42,155/- towards GST of 18% on Ground Rent, Rs. 10,54,619/- towards security deposit, Rs.24,19,279/- towards License Fee, Rs. 1,20,964/- towards Scrutiny Fee, Rs.3,93,512/ towards Water Supply, Rs.3,93,512/- towards Ring Road, Rs. 1,96,756/- towards Slum Development, Rs.9,83,780/- towards Transportation charges (MSRD) and Rs. 15,19,000/- towards II Karnataka State Building and other Construction Workers Welfare Board labour cess is concerned. (b) 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 - 4 - HC-KAR NC: 2025:KHC:21858 WP No. 10845 of 2020 bearing No. LD 300 LET 2006 dated 28/02/2007 directing upfront collection of labour welfare cess, as contained in ANNEXURE-D. (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 framed under the Karnataka Municipal Corporations Act as unconstitutional, arbitrary, illegal and ultra vires; (d) Issue writ of mandamus or similar writ or order or direction directing the respondent Nos.3 and 4 to issue building revised plan and license pursuant to their communication issued by the respondent No.4 without insisting for payment of amount mentioned above. (e) 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. 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.36017/2018 and - 5 - HC-KAR NC: 2025:KHC:21858 WP No. 10845 of 2020 connected matters. The Co-ordinate Bench, while deciding the issue, has held that the bye-laws under which Ground Rent, License Fee, Building License fee, Scrutiny fee are levied are ultra vires the Act. The Co-ordinate Bench also quashed the circular dated 04.09.2015 and Government circulars dated 27.01.2017 and 30.03.2017. Therefore, this Court deems it fit to cull out the operative portion of the order, which reads as under; "O R D E R i) All the Writ Petitions are allowed. ii) The bye-laws under which Ground Rent, Licence Fee, Building Licence Fee, Scrutiny Fee, Security Deposit are all held ultravires the Act and are resultantly rendered unenforceable. iii) The Circular bearing No.ºÉ¤£ÀAiÉÆÃ/eÉ.r(G)/rJªÀiï3/¦Dgï/320/2015 -16 dated 04.09.2015 stands quashed. iv) The Circular bearing No.£ÀCE 36 ¨ÉªÀÄ¥Áæ 2016 (¨sÁUÀ) dated 27.01.2017 and the Circular bearing No. ºÉ¤£ÀAiÉÆÃ/¦Dgï/1533/2016-17 - 6 - HC-KAR NC: 2025:KHC:21858 WP No. 10845 of 2020 dated 30.03.2017 demanding Lake Rejuvenation Fee are quashed. v) Imposition of labour cess under the Welfare Cess Act is upheld, but its demand for payment upfront in terms of Government Orders dated 18.01.2007 and 28.02.2007 stands quashed. vi) The State or the BBMP is not precluded from bringing in the impugned levies under the provisions of the Act or the Rules by making suitable amendments to the Act and the Rules. 368 vii) Petitioners in all these petitions who have deposited certain amounts in terms of the interim order passed by this Court before this Court are entitled to refund of the amounts so deposited. viii) Insofar as refund in other cases who have paid to the Corporation under protest, they shall be entitled to such refund only if the same is not collected from the consumers of the apartments, businesses as the case would be. ix) Insofar as all other payments made, they would all be at liberty to give representation to the BBMP and the BBMP would consider the refund of the amounts, in accordance with law and the findings of this Court. - 7 - HC-KAR NC: 2025:KHC:21858 WP No. 10845 of 2020 x) If representations are made by the petitioners for refund, the BBMP shall pass appropriate orders within 12 weeks from the date of such representations. In view of disposal of the petitions, all pending Interlocutory Applications also stand disposed." 3. In the considered view of this Court, the issues raised in the present writ petition stand squarely covered by the authoritative pronouncement rendered by the Co- ordinate Bench of this Court in W.P.No.36017/2018 and connected matters. The Co-ordinate Bench, after examining the statutory framework and the impugned levy mechanisms adopted by the BBMP, categorically held that the imposition of Ground Rent, Licence Fee, Building Licence Fee, Scrutiny Fee, and Security Deposit lacked statutory sanction and were ultra vires the Karnataka Municipal Corporations Act, 1976. The Co-ordinate Bench further held that Clause 3.8 of the BBMP Building Bye- laws, 2003, which provided for imposition of Ground Rent, was also devoid of legal authority and consequently struck - 8 - HC-KAR NC: 2025:KHC:21858 WP No. 10845 of 2020 it down. The Court also quashed the impugned Circular dated 04.09.2015 issued by respondent No.4, as well as the Government Orders dated 27.01.2017 and 30.03.2017, which had directed collection of such fees without statutory backing. With specific reference to labour welfare cess, the Co-ordinate Bench upheld the competence of the State to levy the cess under the Building and Other Construction Workers’ Welfare Cess Act, 1996, but set aside the directive mandating its upfront collection through Government Orders dated 18.01.2007 and 28.02.2007, thereby rendering the demand raised in anticipation of sanction of building plans unlawful. The Co-ordinate Bench also clarified that the only charging provision available under the Act was sub- section (20-b) of Section 423, which merely enabled collection of fees for services relating to burial grounds and crematoria, and could not be relied upon for the imposition of unrelated charges such as ground rent or scrutiny fee. In light of these clear and binding findings, - 9 - HC-KAR NC: 2025:KHC:21858 WP No. 10845 of 2020 the controversy raised in the present writ petition does not survive for independent adjudication, as the grievance of the petitioner is directly addressed and resolved by the said judgment. Therefore, this Court is of the considered opinion that the present writ petition deserves to be allowed by applying the ratio and operative portion of the judgment rendered in W.P.No.36017/2018 and connected matters. 4. 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 07.09.2020 issued by respondent 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. - 10 - HC-KAR NC: 2025:KHC:21858 WP No. 10845 of 2020 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. Pending applications, if any, are also disposed off. Sd/- (SACHIN SHANKAR MAGADUM) JUDGE GSS List No.: 2 Sl No.: 19