- 1 - HC-KAR NC: 2025:KHC:21094 WP No. 7216 of 2021 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 17TH DAY OF JUNE, 2025 BEFORE THE HON'BLE MR JUSTICE SACHIN SHANKAR MAGADUM WRIT PETITION NO. 7216 OF 2021 (LB-BMP) BETWEEN: 1. SRI. NITIN BAGAMANE S/O LATE SRI. B.D. BHOJEGODA AGED 57 YEARS RESIDING AT NO.69, LAVELLE ROAD BANGALORE-560 001 2. M/S. SUDHA ENTERPRISES A REGISTERED PARTNERSHIP FIRM HAVING ITS OFFICE AT "PAVAMANA" 51, SUBBARAMA CHETTY ROAD BASAVANAGUDI BANGALORE-560 004 REPRESENTED BY ITS GPA HOLDER SRI. NITIN BAGAMANE …PETITIONERS (BY SRI. VIVEKANANDA T.P, ADVOCATE) AND: 1. STATE OF KARNATAKA REPRESENTED BY ITS SECRETARY URBAN DEVELOPMENT DEPARTMENT 4TH FLOOR, VIKAS SOUDHA DR. AMBEDKAR VEEDHI BANGALORE-560 001 2. THE BRUHAT BANGALORE MAHANAGARA PALIKE N.R.SQUARE, BANGALORE-560 002 REPRESENTED BY ITS COMMISSIONER Digitally signed by MOUNESHWARAPPA NAGARATHNA Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:21094 WP No. 7216 of 2021 3. THE JOINT DIRECTOR (TOWN PLANNING NORTH) BRUHAT BANGALORE MAHANAGARA PALIKE N.R.SQUARE, BANGALORE-560 002 …RESPONDENTS (BY SMT. SPOORTHY V, HCGP FO R1; SMT. M.R. SINCHANA M.R, ADVOCATE FOR R2 & R3) THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF CONSTITUTION OF INDIA, PRAYING TO QUASH THE DEMAND NOTICE DTD. 01.04.2021 AT ANNX-G ISSUED BY THE R-3 ONLY IN SO FAR AS THE DEMAND OF RS. 74,06,740/- TOWARDS GROUND RENT, RS.13,33,213/- TOWARDS GST AT 18 PERCENT ON THE GROUND RENT, RS. 8,82,197/- TOWARDS BETTERMENT CHARGES FOR BUILDING RS.8,82,197/- TOWARDS SECURITY DEPOSIT, RS. 38,52,695/- TOWARDS LICENSE FEE, RS. 7,40,674/- TOWARDS SCRUTINY FEE, RS.20,80,908/- TOWARDS BWSSB CHARGES, RS.20,80,908/- TOWARDS RING ROAD CESS, RS.9,88,431/- TOWARDS IMPROVEMENT OF SLUMS RS.98,84,313/- TOWARDS MRTS SURCHARGE, RS.5,20,227/- TOWARDS 5 PERCENT OF SURCHARGE PAYABLE TO BBMP, ANOTHER DEMAND OF SCRUTINY FEE RENT IN A SUM OF RS. 11,52,160/- ARE CONCERNED AND DECLARE THAT BYE-LAWS NO.3.9 IN THE BANGALORE MAHANAGARA PALIKE BUILDING BYE-LAWS 2003 AS UNCONSTITUTIONAL ARBITRARY, ILLEGAL AND ULTRAVIRES AND ETC. - 3 - HC-KAR NC: 2025:KHC:21094 WP No. 7216 of 2021 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 The captioned petition is filed seeking the following reliefs: i) Issue w rit of certiorari or similar writ or order or direction to quash the demand notice No.BBMP/Addl.Dir/JDNorth/LP/0460/2014-15 dated 01.04.2021 at Annexure -G issued by the 3rd Respondent only in so far as the demand of Rs.74,06,740/- towards ground rent, Rs.13,33,213/- towards GST at 18% on the ground rent, Rs.8,82,197/- towards Betterment charges for building, Rs.8,82,197/- towards Security Deposit, Rs.38,52,695/- towards License Fee, Rs.7,40,674/- towards Scrutiny fee, Rs.20,80,908/- towards BWSSB charges, Rs.20,80,908/- towards Ring Road Cess, Rs.9,88,431/- towards Improvement of slums, Rs.98,84,313/-towards MRTS surcharge, Rs.5,20,227/- towards 5% of surcharge payable to BBMP, another demand of scrutiny fee rent in a sum of Rs. 11,52,160/- are concerned; ii) Issue a writ of Mandamus or any other appropriate writ or order or direction declaring that Bye- law No.3.9 in the Bangalore Mahanagara Palike Building Bye-laws, 2003 as unconstitutional, arbitrary, illegal and ultravires; iii) Issue a writ of certiorari or similar writ or order or direction to quash provisions of section 18-A of Karnataka Town and Country Planning Act, 1961 brought into effect by Karnataka Act No.23 of 2004 by - 4 - HC-KAR NC: 2025:KHC:21094 WP No. 7216 of 2021 the 1 Respondent at Annexure-J in so far as 18-A(i) and (iv) of Karnataka Act No. 23 of 2004 is concerned. iv) Grant an order, direction or writ in the nature of Certiorari quashing the Notification issued by the 1st Respondent bearing No. UDD 3 TPP 2015 dated 25.02.2020 as contained in ANNEXURE-K in so far as the amended Rule 37-A and Rule 37-C are concerned; v) Issue writ of mandamus or similar writ or order or direction directing the respondent Nos 2 and 3 to issue modified building plan and occupancy certificate pursuant to the demand notice No.BBMP/Addl.Dir/JD North/LP/0460/2014-15 dated 01.04.2021 at Annexure G issued by the 3rd Respondent without insisting for payment of aforesaid demands. vi) issue any other appropriate writ or order or direction as deemed fit in the 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:21094 WP No. 7216 of 2021 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:21094 WP No. 7216 of 2021 (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:21094 WP No. 7216 of 2021 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:21094 WP No. 7216 of 2021 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 judgment rendered by 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:21094 WP No. 7216 of 2021 ORDER (i) The writ petition is allowed. (ii) The impugned demand notice dated 01.04.2021 issued by respondent No.3 as per Annexure-G is hereby set-aside. (iii) Respondent Nos.2 and 3 are hereby directed to issue modified sanction plan. (iv) 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 is directed to forthwith process the petitioner’s application seeking building license, sanction of the building plan and occupancy certificate, strictly in accordance with law. (v) It is made clear that the issuance of the building license ,approval of the plan and occupancy certificate shall not be withheld - 10 - HC-KAR NC: 2025:KHC:21094 WP No. 7216 of 2021 merely on the ground that the BBMP is contemplating to file an appeal against the reported judgment. (vi) If the building license ,sanction plan and occupancy certificate are issued, the same shall be subject to the outcome of any appeal that may be filed by the BBMP against the said judgment. Pending applications, if any, are also disposed off. Sd/- (SACHIN SHANKAR MAGADUM) JUDGE DH List No.: 2 Sl No.: 7