- 1 - HC-KAR NC: 2025:KHC:23176 WP No. 15593 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.15593 OF 2024 (LB-BMP) BETWEEN: M/S. SHOBHA LIMITED (FORMERLY KNOWN AS SOBHA DEVELOPERS LIMITED), A COMPANY INCORPORATED UNDER THE COMPANIES ACT, 1956, AND HAVING ITS REGISTERED AND CORPORATE OFFICE AT, SARJAPUR-MARTHAHALLI OUTER RING ROAD (ORR), DEVERABESANAHALLI, BELLANDUR POST, BANGALORE 560103. REPRESENTED BY ITS AUTHORIZED SIGNATORY, MR. PRASAD M.S. ASSISTANT GENERAL MANAGER-LEGAL DEPARTMENT. …PETITIONER (BY SRI MADHUKAR DESHPANDE, ADVOCATE) AND: 1. THE STATE OF KARNATAKA, REPRESENTED BY ITS PRINCIPAL SECRETARY, DEPARTMENT OF PARLIAMENTARY AFFAIRS AND LEGISLATION, VIDHANA SOUDHA, DR. B.R. AMBEDKAR VEEDHI, BENGALURU-560 001. 2. DEPARTMENT OF URBAN DEVELOPMENT, GOVERNMENT OF KARNATAKA, REPRESENTED BY ITS PRINCIPAL SECRETARY, 4TH FLOOR, VIKAS SOUDHA, DR. B.R. AMBEDKAR VEEDHI, BENGALURU-560 001. Digitally signed by MAHALAKSHMI B M Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:23176 WP No. 15593 of 2024 3. JOINT DIRECTOR, TOWN PLANNING (SOUTH), BBMP, HUDSON CIRCLE, BANGALOLRE-560002. 4. BRUHATH BANGALORE MAHANAGARA PALIKE, N.R.SQUARE, HUDSON CIRCLE, BENGALURU-560 002. REPRESENTED BY ITS CHIEF COMMISSIONER. …RESPONDENTS (BY SMT. SPOORTHY V., HCGP FOR R-1 & R-2; SRI K.B. MONESH KUMAR, ADVOCATE FOR R-3 & R-4) THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO DECLARE THAT THE PROVISIONS OF SECTIONS 299A AND 299C INSERTED INTO THE KARNATAKA MUNICIPAL CORPORATIONS ACT, 1976 (KARNATAKA ACT NO.14 OF 1977) WITH EFFECT FROM 4TH SEPTEMBER 2015 AND ALSO SECTIONS 240A AND 240C INSERTED INTO THE BRUHAT BENGALURU MAHANAGARA PALIKE 2020 (KARNATAKA ACT NO.53 OF 2020) WITH EFFECT FROM 11/01/2021 AS UNCONSTITUTIONAL, MANIFESTLY ARBITRARY, UNREASONABLE, UNENFORCEABLE, AN UNREASONABLE RESTRICTION ON RIGHT TO PROPERTY BEING EXPROPRIATARY, AN INFRINGEMENT OF CONSTITUTIONAL RIGHT TO PROPERTY UNDER ARTICLE 300A AND FAILING THE TEST OF ARTICLE 14 OF THE CONSTITUTION; QUASH DEMAND NOTICE BEARING NO.BBMP/ADDL. DIR/JD SOUTH/0360/2015-16 DATED 30/05/2024 UNDER ANNEXURE-B TO THE WRIT PETITION 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:23176 WP No. 15593 of 2024 ORAL ORDER The captioned petition is filed seeking following reliefs: “1. DECLARE that the provisions of Sections 299A and 299C inserted into the Karnataka Municipal Corporations Act, 1976 (Karnataka Act No.14 of 1977) with effect from 4th September 2015 and also Sections 240A and 240C inserted into the Bruhat Bengaluru Mahanagara Palike 2020 (Karnataka Act No.53 of 2020) with effect from 11.01.2021 as unconstitutional, manifestly arbitrary, unreasonable, unenforceable, an unreasonable restriction on right to property being expropriatary, an infringement of constitutional right to property under Article 300A and failing the test of Article 14 of the Constitution. 2. Quash demand notice bearing No.BBMP/Addl. Dir/ JD South /0360/2015-16 dated 30.05.2024 under Annexure-B to the writ petition. 3. Direct the 3rd and 4th Respondent by issue of a writ in the nature of mandamus to consider the representation dated 29.09.2021 and reminder dated 08.11.2021 made by the Petitioner under Annexure-E & F respectively and to refund to the petitioner the amount paid by the petitioner. 4. Grant such other and further relief/s as this Hon'ble Court deems fit in the facts and circumstances of the case in the interests of justice and equity.” - 4 - HC-KAR NC: 2025:KHC:23176 WP No. 15593 of 2024 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. 3. 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. 4. 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:23176 WP No. 15593 of 2024 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. 5. 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. 6. 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. 7. Accordingly, this Court proceeds to pass the following: ORDER (i) The writ petition is allowed. - 6 - HC-KAR NC: 2025:KHC:23176 WP No. 15593 of 2024 (ii) The impugned demand notice dated 30.05.2024 issued by Respondent-BBMP as per Annexure-B is hereby set-aside. (iii) Respondent - BBMP is hereby directed to issue Occupancy Certificate in accordance with law in compliance of the construction strictly adhering to the approved building plan. (iv) Respondent-BBMP are hereby directed to forthwith process the petitioner’s application seeking occupancy certificate, strictly in accordance with law. (v) It is made clear that the issuance of the occupancy certificate shall not be withheld merely on the ground that the BBMP is contemplating to file an appeal against the reported judgment. (vi) If the occupancy certificate is issued, the same shall be subject to the outcome of any appeal that may be filed by the BBMP against the said judgment. - 7 - HC-KAR NC: 2025:KHC:23176 WP No. 15593 of 2024 (vii) Insofar as payments made, the Respondent-BBMP shall consider the representation made by the petitioner for refund as per Annexure- E and pass appropriate orders in accordance with law within a period of 8 weeks of receipt of the order. Sd/- (SACHIN SHANKAR MAGADUM) JUDGE MBM List No.: 2 Sl No.: 17