- 1 - HC-KAR NC: 2025:KHC:24803 WP No. 19449 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 8TH DAY OF JULY, 2025 BEFORE THE HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM WRIT PETITION NO.19449 OF 2025 (LB-BMP) BETWEEN: M/S.SILVER STREAM DEVELOPERS PVT LTD., A COMPANY REGISTERED UNDER COMPANIES ACT 2013 OFFICE AT LEVEL 3 AND 4 EMBASSY DIAMANTE 34, VITTAL MALYA ROAD BENGALURU - 560 001 REPRESENTED BY ITS DIRECTOR SMT.AMALA NATARAJ …PETITIONER (BY SRI. T.P VIVEKANANDA, ADVOCATE) AND: 1. STATE OF KARNATAKA REPRESENTED BY ITS SECRETARY URBAN DEVELOPMENT DEPARTMENT 4TH FLOOR, VIKASA SOUDHA DR.AMBEDKAR VEEDHI BENGALURU - 560 001 2. STATE OF KARNATAKA REPRESENTED BY ITS SECRETARY DEPARTMENT OF PARLIAMENTARY AFFAIRS AND LEGISLATION VIDHANA SOUDHA Digitally signed by NAGARAJA B M Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:24803 WP No. 19449 of 2025 DR.B.R. AMBEDKAR VEEDHI BANGALORE-560 001 3. THE BRUHAT BANGALORE MAHANAGARA PALIKE N.R.SQUARE BANGALORE - 560 002 BY ITS CHIEF COMMISSIONER 4. THE JOINT DIRECTOR TOWN PLANNING (SOUTH) BRUHAT BANGALORE MAHANAGARA PALIKE N.R.SQUARE BANGALORE - 560 002 …RESPONDENTS (BY SRI.H.K.KENCHE GOWDA, AGA FOR R.1 AND R.2; SRI.PAWAN KUMAR, ADVOCATE FOR R.3 AND R.4) THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT OF CERTIORARI OR SIMILAR WRIT OR ORDER OR DIRECTION TO QUASH THE KARNATAKA MUNICIPAL CORPORATIONS AND CERTAIN OTHER LAW (AMENDMENT) ACT, 2021 ACT NO.1/2022 DATED 13.01.2022 AND ETC. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM ORAL ORDER This writ petition is filed seeking for the following reliefs; - 3 - HC-KAR NC: 2025:KHC:24803 WP No. 19449 of 2025 "i) Issue a writ of certiorari or similar writ or order or direction to quash the Karnataka Municipal Corporations and Certain Other Law (Amendment) Act, 2021 Act No.1/2022 dated 13.01.2022 enacted by the second respondent published through notification bearing No.DPAL 50 SHASANA 2021 gazetted on 13.01.2022 at Annexure-F declaring it to be ultravires and unconstitutional. ii) Issue writ of certiorari or similar writ or order or direction to quash the Office Order bearing No.ADTP/PR/461/2021-22 dated 09.03.2022 issued by the third respondent at Annexure-G. iii) Issue writ of mandamus or similar writ or order or direction declaring that the Bruhat Bengaluru Mahanagara Palike and certain other Law (Amendment) Act, 2023 (Karnataka Act No.37/2024 issued by 2nd respondent produced at Annexure-H is ultravires to the Constitution of India and quash the same. iv) Issue a writ of certiorari or similar writ or order or direction to quash the fee demand notice bearing No.BBMP/Addl.Dir/JD/South/0044/17-18 dated 05.05.2025 at Annexure-E issued by the Respondent No.4 in so far as demand towards Ground Rent of Rs.1,18,58,449/-, GST at 18% in a sum of Rs.21,34,521/-, License fee of Rs.79,05,633/-, Scrutiny fee of Rs.3,95,282/- are concerned. v) Issue any other appropriate writ or order or direction to the respondents deemed fit in the - 4 - HC-KAR NC: 2025:KHC:24803 WP No. 19449 of 2025 circumstances of the case, in the interest of justice and equity." n order, direction or writ in the nature of certiorari quashing the Notification issued by the Respondent No.2 bearing No. UDD 3 TTP 2015 dated 25/02/2020 (Annexure-D) insofar as the inserted Rules 37-A and 37- C are concerned: b) Grant an order, direction or writ in the nature of certiorari quashing the Government order bearing No. LD/300/LET/2006, issued by the Respondent No.2 dated 18/01/2007 (Annexure-E) and the corrigendum order bearing No. LD/300/LET/2006, issued by the Respondent No.2, dated 28/02/2007 (Annexure-F) mandating upfront collection of labour welfare cess in so far the Petitioner. c) Issue a writ, order or direction in nature of a certiorari as regards the levy sought to be imposed by the Impugned Demand Notice at Annexure-A bearing LP No.BBMP/Ad.Com/YLK/0297/24-25 dated 26/07/2024 issued by Respondent No.4 in so far as Labour Cess for a sum of Rs.2,28,195/-. d) Issue a writ, order or direction in nature of a Certiorari as regards the levy sought to be imposed by the Impugned Demand Notice at Annexure-A bearing LP No.BBMP/Ad.Com/YLK/0297/24-25 dated 26/07/2024 issued by Respondent No.4 in so far levy of ground rent for a sum of Rs.4,27,417/-. - 5 - HC-KAR NC: 2025:KHC:24803 WP No. 19449 of 2025 e) Issue a writ, order or direction in nature of a Certiorari as regards the levy sought to be imposed by the Impugned Demand Notice at Annexure-A bearing LP No.BBMP/Ad.Com/YLK/0297/24-25 dated 26/07/2024 issued by Respondent No.4 in so far as Betterment fee of a sum of Rs.1,23,329/-, for building, Scrutiny Fee for a sum of Rs.23,050/- and License fee a sum of Rs.4,61,004/-: f) Declare that the Respondent Nos.3 and 4 (BBMP) have no authority to collect the taxes under the guise of collection of license fee cess and other fees under various heads based on arbitrary rates and values: g) Issue a writ in the nature of mandamus directing the Respondent Nos. 3 and 4 to collect fees as specified in the Bengaluru Mahanagara Palike Building Bye Laws, 2003 only: h) And grant such other reliefs as this Hon'ble Court may deem fit to grant, based on the facts and circumstances of the case in the interest of justice 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 - 6 - HC-KAR NC: 2025:KHC:24803 WP No. 19449 of 2025 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. and 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. - 7 - HC-KAR NC: 2025:KHC:24803 WP No. 19449 of 2025 4. 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. 5. 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. 6. Accordingly, this Court proceeds to pass the following: ORDER (i) The writ petition is allowed. (ii) The impugned demand notice dated 05.05.2025 issued by respondent No.4 as per Annexure-E is hereby set-aside to the extent, which is challenged. (iii) Respondent-BBMP is hereby directed to issue occupancy certificate in accordance with law in compliance of the - 8 - HC-KAR NC: 2025:KHC:24803 WP No. 19449 of 2025 construction strictly adhering to the approved building plan. (iv) Respondent-BBMP is 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 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.: 1 Sl No.: 29