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2025 DAILYLAW 48387 (KAR)

M/S V2 HOLDINGS HOUSING DEVELOPMENT PVT LTD v. THE STATE OF KARNATAKA

WP/14980/2024 · 2025-06-30

Sachin Shankar Magadum

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Judgment text

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- 1 - HC-KAR NC: 2025:KHC:23171 WP No. 14980 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.14980 OF 2024 (LB-BMP) BETWEEN: 1. M/S V2 HOLDINGS HOUSING DEVELOPMENT PVT. LTD., A COMPANY REGISTERED UNDER THE COMPANIES ACT HAVING ITS OFFICE AT NO.18, MANISH MANSION, 4TH FLOOR, 3RD MAIN, NR COLONY, BANGALORE-560 019 REPRESENTED BY ITS MANAGING DIRECTOR SRI P.L. VENKATARAMA REDDY AGED ABOUT 58 YEARS S/O PAYALA LAKSHMANA REDDY. 2. SRI PRIYA KRISHNA S/O SRI M. KRISHNAPPA AGED ABOUT 40 YEARS, RESIDING AT NO.2937/38/F, SERVICE ROAD, VIJYANAGAR, BANGALORE-560104 REPRESENTED BY HIS GPA HOLDER M/S. V2 HOLDINGS HOUSING DEVELOPMENT PVT. LTD., REPRESENTED BY ITS DIRECTOR SRI P.L. VENKATARAMANA REDDY. …PETITIONERS (BY SRI SUDHAKAR G.V., ADVOCATE) AND: 1. THE STATE OF KARNATAKA THE URBAN DEVELOPMENT DEPARTMENT Digitally signed by MAHALAKSHMI B M Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:23171 WP No. 14980 of 2024 VIKASA SOUDHA, DR. B.R. AMBEDKAR VEEDHI, BANGALORE-560 001 REPRESENTED BY ITS SECRETARY. 2. THE STATE OF KARNATAKA DEPARTMENT OF PARLIAMENTARY AFFAIRS AND LEGISLATION VIKASA SOUDHA, DR. B.R. AMBEDKAR VEEDHI, BANGALORE-560 001 REPRESENTED BY ITS SECRETARY. 3. BRUHAT BANGALORE MANAHAGAR PALIKE N.R. SQUARE, BANGALORE-560002 REPRESENTED BY ITS COMMISSIONER. 4. THE JOINT DIRECTOR (TOWN PLANNING-SOUTH) BRUHAT BANGALORE MAHANAGARA PALIKE, ANNEX-3 BUILDING, HEAD OFFICE BUILDING, N.R. SQUARE, BANGALORE-560 048. …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 ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO 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 (ANNEXURE-R) AS BEING ULTRA VIRES THE CONSTITUTION IN SO FAR THE PETITIONER IS CONCERNED IN SO FAR THE PETITIONER 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:23171 WP No. 14980 of 2024 ORAL ORDER The captioned petition is filed seeking following reliefs: “1) Grant an order declaring that the entire Karnataka Municipal Corporations and Certain Other Law (Amendment) Act, 2021 (Karnataka Act No.01 OF 2022) bearing No.DPAL/50/SHASANA/2021 notified on 13/01/2022 (ANNEXURE-R) as being ultra vires the Constitution in so far, the Petitioner is concerned in so far, the Petitioner is concerned. ii) To declare that Karnataka Municipal Corporations and Certain Other Law (Amendment) Act, 2021 (Karnataka Act No.01 of 2022) bearing No.DPAL/50/SHASANA/2021 notified on 13/01/2022 (ΑNNEXURE-R) is in violation/contrary to the decision of this Hon'ble Court in W.P No.4601/2020 (LB-BMP) which is at Annexure-P. iii) 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.3 as contained in (ANNEXURE-S) in so far, the Petitioner is concerned. iv) grant an order, direction or writ in the nature of Certiorari quashing 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 - 4 - HC-KAR NC: 2025:KHC:23171 WP No. 14980 of 2024 (ANNEXURE-J) insofar as Section 18-A(i) and (iv) of the Karnataka Act No.23 of 2004 is concerned; v) Grant an order, direction or writ in the nature of Certiorari quashing the Notification issued by the 1st Respondent bearing No.UDD 3 TTP 2015 dated 25/02/2020 as contained in (ANNEXURE-H) insofar as the inserted Rule 37-A and 37-C is concerned; vi) issue a writ or order by way of certiorari quashing the circular dated 14/08/2020, bearing No.He.Ni.Ka.Pa.Ko/P.R/320/2020-21 issued by the Respondent No.3 (Annexure-K) in so far the Petitioner is concerned. vii) Grant an order, direction or writ in the nature of Certiorari quashing the Notification issued by the 1st Respondent bearing No.UDD 23 TTP 2020 (E) dated 21/06/2021 as contained in (ANNEXURE-L) insofar as the inserted Rule 37-A and 37-C is concerned; viii) issue a writ or order by way of certiorari quashing the circular dated 24/06/2021, bearing No.He.Ni.Na.Yo/P.R/320/2020-21 issued by the Respondent No.3 (Annexure-M) in so far the Petitioner is concerned. ix) issue a writ or order by way of certiorari quashing the demand notice dated Nil, bearing No.BBMP/AddI.Dir/JDSOUTH/0074/23-24, issued by the Respondent No.4 (Annexure-D) for demanding in so far it is concerned to Ground rent, GST on Ground rent, - 5 - HC-KAR NC: 2025:KHC:23171 WP No. 14980 of 2024 License fee, scrutiny fee, Betterment charges for building, security deposit, Lake Rejuvenation fee, Cess for water supply scheme, Surcharge for formation outer ring road, Cess for improvement of slum, Surcharge for Mass Rapid Transport System, Labour cess and etc., as illegal, without jurisdiction and arbitrary. x) Issue a writ or order or direction by way of mandamus directing the Respondent No.3 and 4 BBMP to issue the sanction plan for construction of the residential apartment building in the Schedule Property without insisting the Ground rent, GST on Ground rent, License fee, scrutiny fee, Betterment charges for building, security deposit, Lake Rejuvenation fee, Cess for water supply scheme, Surcharge for formation outer ring road, Cess for improvement of slum and Surcharge for Mass Rapid Transport System, Labour cess and xi) pass any such other order(s) as this Hon'ble Court deems fit in the facts and circumstances of the case in the interest of justice and equity.” 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. - 6 - HC-KAR NC: 2025:KHC:23171 WP No. 14980 of 2024 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 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. - 7 - HC-KAR NC: 2025:KHC:23171 WP No. 14980 of 2024 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. (ii) The impugned demand notice dated NIL bearing No. BBMP/Addl.Dir /JDSOUTH/0074/23-24 issued by respondent No.4 as per Annexure-D is hereby set-aside. (iii) Respondent-BBMP is 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. - 8 - HC-KAR NC: 2025:KHC:23171 WP No. 14980 of 2024 (v) It is made clear that the issuance of the building license and approval of the 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 subject to the outcome of any appeal that may be filed by the BBMP against the said judgment. Sd/- (SACHIN SHANKAR MAGADUM) JUDGE MBM List No.: 2 Sl No.: 12