- 1 - HC-KAR NC: 2025:KHC:23196 WP No. 21748 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 30TH DAY OF JUNE, 2025 BEFORE THE HON'BLE MR JUSTICE SACHIN SHANKAR MAGADUM WRIT PETITION NO.21748 OF 2024 (LB-BMP) BETWEEN: 1. ANAND SURANA AGED ABOUT 52 YEARS, RESIDING AT “SURANA VILLA”, NO.45/3, FAIRFIELD LAYOUT, RACE COURSE ROAD, BANGALORE-560 001. 2. M/S. DNR CORPORATION PVT. LTD., A COMPANY INCORPORATED UNDER THE PROVISIONS OF THE COMPANIES ACT, 1956, HAVING ITS REGISTERED OFFICE AT NO.304, ‘A’ WING, QUEEN’S CORNER APARTMENT, QUEEN’S ROAD, BENGALURU-560 001, REPRESENTED BY ITS AUTHORIZED SIGNATORY AND SR. LEGAL ADVISOR, JENIFER MARY. D. …PETITIONERS (BY SRI BADRI VISHAL, ADVOCATE) AND: 1. STATE OF KARNATAKA URBAN DEVELOPMENT DEPARTMENT, VIDHANA SOUDHA, Digitally signed by MAHALAKSHMI B M Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:23196 WP No. 21748 of 2024 BENGALURU-560 001. REPRESENTED BY IT’S UNDER SECRETARY. 2. THE BRUHAT BENGALURU MAHANAGARA PALIKE N.R. SQUARE, BENGALURU-560 002. REPRESENTED 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 H.K. KENCHEGOWDA, AGA FOR R-1; SRI K.B. MONESH KUMAR, ADVOCATE FOR R-2 & R-3) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO DECLARE THAT SECTION 18-A OF THE KARNATAKA TOWN AND COUNTRY PLANNING ACT, 1961 BROUGHT INTO EFFECT BY KARNATAKA ACT NO.23 OF 2004 (KARNATAKA TOWN & COUNTRY PLANNING (AMENDMENT) ACT, 1998) PRODUCED AT ANNEXURE-A AS BEING ULTRA VIRES THE CONSTITUTION OF INDIA; QUASHING THE NOTIFICATION ISSUED BY THE RESPONDENT NO. 1 BEARING NO.UDD 23 TTP 2020 (E) DATED 21.06.2021 PRODUCED AT ANNEXURE-B INSOFAR AS THE AMENDED RULE 37- A AND 37-C IS CONCERNED AND ETC. THIS PETITION COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE SACHIN SHANKAR MAGADUM - 3 - HC-KAR NC: 2025:KHC:23196 WP No. 21748 of 2024 ORAL ORDER The captioned petition is filed seeking following reliefs: “a. Declare that Section 18-A of the Karnataka Town & Country Planning Act, 1961 brought into effect by Karnataka Act No.23 of 2004 (Karnataka Town & Country Planning (Amendment) Act, 1998) 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 issued by the Respondent No.1 bearing No.UDD 23 TTP 2020 (E) dated 21.06.2021 produced at ANNEXURE-B insofar as the amended Rule 37- A and 37-C is concerned; c. 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-C as being ultra vires the Constitution of India; d. Issue a Writ of Certiorari or any other appropriate Writ, order or direction quashing the Notification the Office Order issued by Respondent No.2 bearing No.HaNiNaYo/PR/461/2021-22 dated 09.03.2022 issued by Respondent No.2 produced at ANNEXURE-D; - 4 - HC-KAR NC: 2025:KHC:23196 WP No. 21748 of 2024 e. Issue a Writ of Certiorari or any other appropriate Writ, order or direction quashing the Demand Notice bearing No.BBMP/EoDB/CH/11910/ 24-25 dated 19.06.2024 issued by Respondent No.3 directing the Petitioner to deposit a sum of Rs.25,04,000/- (Rupees Twenty-Five Lakhs Four Thousand only) towards Labour Cess for issuance of fresh sanction plan, produced at ANNEXURE–E; f. Issue a Writ of Certiorari or any other appropriate Writ, order or direction quashing the Demand Notice bearing No.BBMP/EoDB/CH/11909/ 24-25 dated 19.06.2024 issued by Respondent No.3 directing the Petitioner herein to deposit a sum of Rs.3,36,53,000.00/- (Rupees Three Crores Thirty-Six Lakhs Fifty-Three Thousand only) towards Scrutiny Fee, License Fee, Betterment Fees, Security Deposit, Lake Rejuvenation Fees, 1% of Labour Cess, Administrative Fees, Ground Rent, Road Cutting Free, Compound Wall Charges, Water Supply Scheme, Ring Road, Improving Slums, MRTS cess, 5% Surcharge, penalty and Miscellaneous charge produced at ANNEXURE-F; g. Issue a Writ of Mandamus or any other appropriate Writ, order or direction, directing the Respondent No.3 to issue fresh sanction plan to the Petitioner without insistence of the fess specified towards Labour Cess as contained in Demand Notice bearing No.BBMP/EoDB/CH/11910/24-25 dated 19.06.2024 produced at ANNEXURE–E; and Demand Notice bearing No.BBMP/EoDB/CH/11909/24-25 dated 19.06.2024 - 5 - HC-KAR NC: 2025:KHC:23196 WP No. 21748 of 2024 towards Scrutiny Fee, License Fee, Betterment Fees, Security Deposit, Lake Rejuvenation Fees, Ground Rent, Water Supply Scheme, Ring Road Cess, Improving Slums Cess, MRTS cess, 5% Surcharge, penalty and Miscellaneous charge produced at ANNEXURE-F and h. Direct the Respondent No.3 to refund the sum amounting to Rs.1,82,284/- (Rupees One Lakh Eight-Two Thousand Two Hundred Eighty-Four only) collected from the Petitioner towards “Scrutiny Fee” at the time of applying of Plan Sanction for the Schedule Property produced at ANNEXURE-F; i. Declare that the various fees levied based on the guidance value of the property are all bad in law and unconstitutional; and j. Grant such other relief or reliefs as this Hon’ble Court may deem fit 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.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 - 6 - HC-KAR NC: 2025:KHC:23196 WP No. 21748 of 2024 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. (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’ - 7 - HC-KAR NC: 2025:KHC:23196 WP No. 21748 of 2024 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 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." - 8 - HC-KAR NC: 2025:KHC:23196 WP No. 21748 of 2024 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 (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 - 9 - HC-KAR NC: 2025:KHC:23196 WP No. 21748 of 2024 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 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. - 10 - HC-KAR NC: 2025:KHC:23196 WP No. 21748 of 2024 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 19.06.2024 issued by respondent No.3 as per Annexure-E and F 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. - 11 - HC-KAR NC: 2025:KHC:23196 WP No. 21748 of 2024 (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. (vii) Insofar as payments made, Petitioner shall make a representation to the Respondent-BBMP for the refund, Respondent- BBMP shall consider the representation and pass appropriate orders in accordance with law, within a period of 8 weeks of receipt of such representation. Pending applications, if any, are also disposed off. Sd/- (SACHIN SHANKAR MAGADUM) JUDGE MBM List No.: 2 Sl No.: 37