- 1 - HC-KAR NC: 2025:KHC:22862 WP No. 32376 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 27TH DAY OF JUNE, 2025 BEFORE THE HON'BLE MR JUSTICE SACHIN SHANKAR MAGADUM WRIT PETITION NO. 32376 OF 2024 (LB-BMP) BETWEEN: 1. M/S. PARAKITE BUILDERS PVT. LTD. A PRIVATE LIMITED COMPANY INCORPORATED UNDER THE COMPANIES ACT, 1956 HAVING ITS REGISTERED OFFICE AT: M/S. GPR TOWERS, NO.6, PARK ROAD, TASKER TOWN, BANGALORE-560 051 REPRESENTED BY ITS DIRECTOR AND AUTHORISED SIGNATORY MR. AVINASH AGARWALL, AGED ABOUT 43 YEARS. 2. SRI. M. NARAYANA S/O LATE MUNI VENKATAPPA, AGED ABOUT 84 YEARS, 3. SRI. M. SUBBANNA S/O LATE MUNI VENKATAPPA, AGED ABOUT 82 YEARS, PETITIONER NO.2 AND 3 ARE RESIDING AT GRAPE GARDEN, OPPOSITE CHANDRAMMA CHOULTRY, SEVANAGAR, BANGALORE-560 033. PETITIONER NO.2 AND 3 ARE REPRESENTED BY THEIR AUTHORIZED ATTORNEY HOLDERS (GPA) Digitally signed by NAGARAJA B M Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:22862 WP No. 32376 of 2024 M/S. PARAKITE BUILDERS PVT. LTD. (PETITIONER NO.1) …PETITIONERS (BY SRI. SAMMITH S., ADVOCATE) AND: 1. THE STATE OF KARNATAKA REPRESENTED BY ITS UNDER SECRETARY DEPARTMENT OF URBAN DEVELOPMENT, GOVERNMENT OF KARNATAKA, VIKASA SOUDHA, BENGALURU-560 001. 2. THE BRUHAT BENGALURU MAHANAGARA PALIKE REPRESENTED BY THE CHIEF COMMISSIONER, N.R. SQUARE, BENGALURU-560 002. 3. THE JOINT DIRECTOR TOWN AND COUNTRY PLANNING (NORTH) BRUHAT BENGALURU MAHANAGARA PALIKE, NR SQUARE, BANGALORE - 560002 …RESPONDENTS (BY SRI. BOPANNA B., AGA FOR R1; SRI. K.B. MONESH KUMAR, ADVOCATE FOR R2 & R3) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO (A) DECLARING THAT THE ENTIRE KARNATAKA MUNICIPAL CORPORATIONS AND CERTAIN OTHER LAW (AMENDMENT) ACT, 2021 (KARNATAKA ACT NO. 01 OF 2022) NOTIFIED ON 13/01/2022 AS CONTAINED IN ANNEXURE-L AS BEING ULTRA VIRES THE CONSTITUTION AND ETC. THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN B-GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: - 3 - HC-KAR NC: 2025:KHC:22862 WP No. 32376 of 2024 CORAM: HON'BLE MR JUSTICE SACHIN SHANKAR MAGADUM ORAL ORDER This petition is filed seeking the following reliefs:- “a. Grant an order declaring that the entire Karnataka Municipal Corporations and Certain Other Law (Amendment) Act, 2021 (Karnataka Act No. 01 of 2022) notified on 13/01/2022 as contained in ANNEXURE – L as being ultra vires the Constitution. b. grant an order declaring that the entire Bruhat Bengaluru Mahanagara Palike and Certain Other Law (Amendment) Act, 2023 (Karnataka Act No. 37 of 2024) notified by Respondent No.1 on 16/08/2024 as contained in ANNEXURE-Q as being ultra vires the Constitution. c. grant an order declaring 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) as contained in ANNEXURE-C as being ultra vires the Constitution. - 4 - HC-KAR NC: 2025:KHC:22862 WP No. 32376 of 2024 d. grant an order, direction, or writ in the nature of Certiorari quashing the Notification issued by the 1st Respondent bearing No. UDD 3 TPP 2015 dated 25/02/2020 as contained in ANNEXURE-D insofar as the amended Rule 37- A is concerned. e. grant an order, direction, or writ in the nature of Certiorari quashing the circular issued by Respondent No.1 bearing no. UDD 23 TTP 2020(E) dated 21/06/2021 as contained in ANNEXURE-J insofar as the amended Rule 37- A and 37-C is concerned. f. grant an order, direction, or writ in the nature of certiorari quashing the Office Order No. HaNiNaYo/PR/461/2021-22 dated 09/03/2022 issued by Respondent No. 2 as contained in ANNEXURE-N. g. grant an order, direction, or writ in the nature of mandamus directing the Respondent Nos. 2 to issue Commencement Certificate to the Petitioner without the insisting the payment of INR INR 37,11,435/- (Rupees Thirty-seven Lakhs Eleven Thousand Four Hundred and Thirty-five only) towards Ground Rent, Licence - 5 - HC-KAR NC: 2025:KHC:22862 WP No. 32376 of 2024 Fees, Scrutiny Fee and Scrutiny Deposit, that was previously stayed in WP 11152/2020 (LB- BMP) as contained in ANNEXURE-F. The notice bearing No. BBMP/Addl. Dir/JDNORTH/ 0061/2019-20 dated 14/08/2024 is herewith attached and enclosed as ANNEXURE-P. h. grant an order, direction, or writ in the nature of Mandamus, directing the Respondents to issue the Commencement Certificate with respect to the Schedule Property to the Petitioner without insisting for payment of amounts demanded in the impugned demand notice. i. grant such other relief or reliefs as this Hon'ble Court may deem fit to grant, including cost of the Petitioners, in the facts and 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.23086/2022 and connected matters. The Co-ordinate Bench, while deciding the issue, has set-aside the Karnataka Municipal - 6 - HC-KAR NC: 2025:KHC:22862 WP No. 32376 of 2024 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. (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. - 7 - HC-KAR NC: 2025:KHC:22862 WP No. 32376 of 2024 (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. (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 - 8 - HC-KAR NC: 2025:KHC:22862 WP No. 32376 of 2024 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 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 - 9 - HC-KAR NC: 2025:KHC:22862 WP No. 32376 of 2024 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 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 - 10 - HC-KAR NC: 2025:KHC:22862 WP No. 32376 of 2024 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 14.08.2024 issued by respondent No.3 as per Annexure-P is hereby set-aside. (iii) Respondent No.2 - BBMP hereby directed to issue Commencement Certificate in accordance with law as the case may be. (iv) Respondent No.2 - BBMP is hereby directed to forthwith process the petitioner's application seeking Commencement Certificate, strictly in accordance with law. (v) It is made clear that the issuance of the Commencement Certificate 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:22862 WP No. 32376 of 2024 (vi) If the Commencement Certificate is 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 NBM List No.: 2 Sl No.: 33