- 1 - HC-KAR NC: 2025:KHC:24759 WP No. 3094 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 1ST DAY OF JULY, 2025 BEFORE THE HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM WRIT PETITION NO. 3094 OF 2025 (LB-BMP) BETWEEN: SHRI. P. BHUVAN S/O LATE SHRI. A. PILLA REDDY, AGED ABOUT 39 YEARS, R/A NO.6/4, “OM SHAKTHI NILAYA”, ITPL ROAD, ADJACENT TO HYPER CITY MALL, KUNDALAHALLI GATE, THUBARAHALLI, MARATHAHALLI COLONY, BENGALURU-560 037. …PETITIONER (BY SRI. ANANTHAPADMANABHA G.N., ADVOCATE) AND: 1. STATE OF KARNATAKA URBAN DEVELOPMENT DEPARTMENT, VIDHANA SOUDHA, 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. OFFICE OF THE ASSISTANT DIRECTOR OF TOWN PLANNING (MAHADEVAPURA), RHB COLONY, WHITEFIELD MAIN ROAD, BENGALURU-560 048. Digitally signed by NAGARAJA B M Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:24759 WP No. 3094 of 2025 REPRESENTED BY THE ASSISTANT DIRECTOR OF TOWN PLANNING …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. 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 AND COUNTRY PLANNING (AMENDMENT) ACT, 1998) PRODUCED AT ANNEXURE-A AS BEING ULTRA VIRES THE CONSTITUTION OF INDIA AND ETC. THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN B-GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. CORAM: HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM ORAL ORDER This petition is filed seeking the 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; - 3 - HC-KAR NC: 2025:KHC:24759 WP No. 3094 of 2025 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 bearing No. DPAL.5OSHASANA2021 BENGALURU dated 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; e. Issue a Writ of Certiorari or any other appropriate Writ, order or direction quashing the Demand Notice bearing No. BBMP/Ad.Com/MDP/0747/24-25 dated 20-12- 2024 issued by Respondent No.3 directing the - 4 - HC-KAR NC: 2025:KHC:24759 WP No. 3094 of 2025 Petitioner herein to deposit a sum of Rs.33,22,047/- (Rupees Thirty Three Lakhs Twenty Two Thousand and Forty Seven Only) towards inter alia Scrutiny Fee, Licence Fee, Betterment Levy for Building and Site, Security Deposit, Lake Rejuvenation Fee, Ground rent, Road Cutting Fee, Compound wall Charges, Water Supply Cess, Ring Road Surcharge, Cess for Improvement of Slums, MRTS Surcharge, 5% Administrative Charges to BBMP on cess, Penalty, Miscellaneous Charges and a sum of Rs.5,48,000/- (Rupees Five Lakhs Forty Eight Thousand Only) towards Labour Cess for the issuance of Fresh Plan Sanction, be paid by Petitioner produced at ANNEXURE-E; f. Issue a Writ of Mandamus or any other appropriate Writ, order or direction, directing the Respondent No.3 to issue fresh sanction (new) plan to the Petitioner without insistence of the fees specified towards alia Scrutiny Fee, Licence Fee, Betterment Levy for Building and Site, Security Deposit, Lake Rejuvenation Fee, Ground rent, Road Cutting Fee, Compound wall Charges, Water Supply Cess, Ring Road Surcharge, Cess for Improvement of Slums, MRTS Surcharge, 5% Administrative Charges - 5 - HC-KAR NC: 2025:KHC:24759 WP No. 3094 of 2025 to BBMP on cess, Penalty, Miscellaneous Charges and a sum of Rs. 5,48,000/-(Rupees Five Lakhs Forty Eight Thousand Only) towards LabourCess as contained in Demand Notice bearing No. BBMP/Ad.Com/MDP/ 0747/24-25 dated 20-12-2024 issued by Respondent No. 3 produced at ANNEXURE-E; g. Declare that the various fees levied based on the guidance value of the property are all bad in law and unconstitutional; and h. 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 Municipal Corporations and Certain Other Law - 6 - HC-KAR NC: 2025:KHC:24759 WP No. 3094 of 2025 (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:24759 WP No. 3094 of 2025 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:24759 WP No. 3094 of 2025 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:24759 WP No. 3094 of 2025 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:24759 WP No. 3094 of 2025 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 20.12.2024 issued by respondent No.3 as per Annexure-E is hereby set-aside. (iii) Respondent No.3 - BBMP is hereby directed to issue fresh/modified plan as the case may be. (iv) Respondent No.3 - 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 - 11 - HC-KAR NC: 2025:KHC:24759 WP No. 3094 of 2025 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.: 21