- 1 - HC-KAR NC: 2025:KHC:24630 WP No. 15524 of 2024 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. 15524 OF 2024 (LB-BMP) BETWEEN: M/S. CORNERSTONE BAY EAST DEVELOPERS PVT. LTD. A PRIVATE LIMITED COMPANY REGISTERED UNDER COMPANIES ACT, 1956, HAVING ITS REGISTERED OFFICE AT #583, 9TH MAIN, OFF CMH ROAD, INDIRANAGAR 1ST STAGE, BENGALURU-560 038. REPRESENTED BY ITS GPA HOLDER, M/S. MYSORE PROJECTS PVT. LTD., A PRIVATE LIMITED COMPANY REGISTERED UNDER COMPANIES ACT, 1956, HAVING ITS REGISTERED OFFICE AT #29TH AND 30TH FLOOR, WORLD TRADE CENTRE, BRIGADE GATEWAY CAMPUS, #26/1, DR. RAJKUMAR ROAD, MALLESHWARAM, RAJAJINAGAR, BENGALURU-560 055, REPRESENTED BY VICE PREISEDENT AND AUTHORIZED SIGNATORY, SRI. UDAYA KUMAR, S/O SRI. RAMA A., AGED ABOUT 57 YEARS. …PETITIONER (BY SRI. SAMMITH S., ADVOCATE) AND: 1. THE STATE OF KARNATAKA REPRESENTED BY ITS UNDER SECRETARY, Digitally signed by AL BHAGYA Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:24630 WP No. 15524 of 2024 DEPARTMENT OF URBAN DEVELOPMENT, GOVERNMENT OF KARNATAKA, VIKASA SOUDHA, BENGALURU-560 001. 2. THE BRUHAT BENGALURU MAHANAGARA PALIKE REPRESENTED BY THE COMMISSIONER, N.R. SQUARE, BENGALURU-560 002. 3. THE JOINT DIRECTOR TOWN AND COUNTRY PLANNING (NORTH), BRUHAT BENGALURU MAHANAGAR PALIKE, NR CIRCLE, BENGALURU-560 002. …RESPONDENTS (BY SMT. SPOORTHY V., HCGP 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 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 AS CONTAINED IN ANNEXURE-H 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: 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 - 3 - HC-KAR NC: 2025:KHC:24630 WP No. 15524 of 2024 Other Law (Amendment) Act, 2021 (Karnataka Act No. 01 of 2022) notified on 13/01/2022 as contained in ANNEXURE-H as being ultra vires the Constitution; b. 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-K; c. grant an order, direction or writ in the nature of mandamus directing the Respondent Nos. 2 to issue partial occupancy certificate to the Petitioner without insistence of the fees specified Sl.No.1 (4 years delayed (i.e., ground rent with GST), Sl.No.2 (i.e., License fee) and Sl.No.3 (i.e., Scrutiny fee) of the Calculation Sheet in demand notice bearing No.BBMP/Addl.Dir/JD North/LP/0280/2017-18 dated 03/06/2024, as contained in ANNEXURE-N; d. grant an order, direction or writ in the nature of Mandamus, directing the Respondents to issue the partial Occupancy Certificate with respect to Building No.7 of the Schedule Property to the Petitioner without insisting for - 4 - HC-KAR NC: 2025:KHC:24630 WP No. 15524 of 2024 payment of amounts demanded in the impugned demand notice; e. grant an order, direction or declare that the various fees levied on the basis of the guidance value of the property are all bad in law and unconstitutional; and f. grant such other relief or reliefs as this Hon'ble Court may deem fit to grant, including cost of the Petitioner, 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 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). - 5 - HC-KAR NC: 2025:KHC:24630 WP No. 15524 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’ found below TABLE I of Rule 37-A of the Karnataka Planning Authority Rules, 1965. - 6 - HC-KAR NC: 2025:KHC:24630 WP No. 15524 of 2024 (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." 3. In the present writ petition, the core issue raised stands substantially covered and decided by the authoritative pronouncement of the coordinate bench, - 7 - HC-KAR NC: 2025:KHC:24630 WP No. 15524 of 2024 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 development plans, in view of the explanatory 'Note' to Table I of Rule 37-A. - 8 - HC-KAR NC: 2025:KHC:24630 WP No. 15524 of 2024 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. 7. In view of the above, this Court proceeds to pass the following; - 9 - HC-KAR NC: 2025:KHC:24630 WP No. 15524 of 2024 ORDER (i) The writ petition is allowed. (ii) The impugned demand notice dated 03.06.2024 issued by respondent No.3 as per Annexure-N is hereby set-aside. (iii) Respondent No.2 - BBMP is hereby directed to issue Partial Occupancy Certificate with respect to Building No.7 of the schedule property in accordance with law in compliance of the construction strictly adhering to the approved building plan. (iv) Respondent No.2 - BBMP is hereby directed to forthwith process the petitioner's application seeking Partial Occupancy Certificate with respect to Building No.7 of the schedule property, strictly in accordance with law. (v) It is made clear that the issuance of the Partial Occupancy Certificate with respect to Building No.7 of the schedule property shall not be withheld merely on the ground that the BBMP is contemplating to file an appeal against the reported judgment. - 10 - HC-KAR NC: 2025:KHC:24630 WP No. 15524 of 2024 (vi) If the Partial Occupancy Certificate with respect to Building No.7 of the schedule property 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.: 8