- 1 - HC-KAR NC: 2025:KHC:23270 WP No. 14341 of 2021 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 27TH DAY OF JUNE, 2025 BEFORE THE HON'BLE MR JUSTICE SACHIN SHANKAR MAGADUM WRIT PETITION NO. 14341 OF 2021 (LB-BMP) BETWEEN: MR. MAHAMMAD NAGOORI AGED 44 YEARS, S/O. MR. N. JABBAR SAHEB, RESIDING AT NO.7-8 CROSS ROAD, KALIKIRI, CHITTOR DISTRICT-517 234, ANDRA PRADESH. …PETITIONER (BY SRI. SHISHIRA AMARNATH, ADVOCATE) AND: 1. STATE OF KARNATAKA REPRESENTED BY ITS PRINCIPAL SECRETARY, URBAN DEVELOPMENT DEPARTMENT, 4TH FLOOR, VIKAS SOUDHA, AMBEDKAR VEEDHI, BENGALURU-560 001. 2. BRUHAT BENGALURU MAHANAGARA PALIKE N.R. SQUARE, BENGALURU-560 002, REPRESENTED BY ITS COMMISSIONER. 3. ASSISTANT DIRECTOR TOWN MAHADEVPURA, RHB COLONY, Digitally signed by NAGARAJA B M Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:23270 WP No. 14341 of 2021 WHITEFIELD MAIN ROAD, BENGALURU-560 048. …RESPONDENTS (BY SPOORTHI, HCGP FOR R1; SMT. M.R. SINCHANA, ADVOCATE FOR R2 & R3) THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA, PRAYING TO (I) QUASH SECTION 18-A OF THE KARNATAKA TOWN AND COUNTRY PLANNING ACT, 1961 BROUGHT INTO FORCE BY AMENDMENT ACT NO.23 OF 2004, PRODUCED AT ANNEXURE-E AS UNCONSTITUTIONAL AND ETC. THIS PETITION, COMING ON FOR ORDERS, 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:- “i) Issue a Writ of Certiorari, or any other writ, as may be deemed appropriate under the present facts and circumstances, squashing Section 18-A of the Karnataka Town and Country Planning Act, 1961 brought into force by amendment act no.23 of 2004, produced at Annexure-E as unconstitutional - 3 - HC-KAR NC: 2025:KHC:23270 WP No. 14341 of 2021 ii) Issue a Writ of Certiorari, or any other writ, as may be deemed appropriate under the present facts and circumstances, quashing Rule 37-C of the Karnataka Planning Authorities Rules, 1965, inserted by way of Karnataka Planning Authorities (Amendment) Rules, 2019 notified by notification bearing no. UDD 3 TPP 2015 dated 25.2.2020 issued by Respondent No.1 produced at Annexure-A as unconstitutional. iii) Issue a Writ of Certiorari, or any other writ, as may be deemed appropriate under the present facts and circumstances, quashing the circular issued by Respondent No.2, bearing no. He.Ni.Ka.Pa.Ko/P.R/320/2020-21 dated 14.8.2020, produced at Annexure-B as invalid; iv) Issue a Writ of Certiorari, or any other writ, as may be deemed appropriate under the present facts and circumstances, quashing the Impugned Demand Notice bearing по. BBMP/Ad.com./MDP/1213/20-21 dated 08.03.2021 w.r.t. (Sl no. 11) seeking for the payment of levy and collection of cess and Surcharges as per Rule 37-C of KPA (amendment) Rules 2019 (as per sub clauses (i), for the following (a)Water supply scheme - 4 - HC-KAR NC: 2025:KHC:23270 WP No. 14341 of 2021 (BWSSB): INR.78,841/-, (b) Ring Road (BDA): INR.78,841/-, (c) Improving the slums (KSCB): INR. 39,421/-, (d) Mass Rapid transport System (BDA): INR. 1,97, 103/- and (Sl no. 4 & 5) Fees under Section 18 of KTCP Act, 1961 for Building: INR. 1,32,180/- and Fees under Section 18 of KTCP Act, 1961 for Site area: INR 6,22,432/- issued by Respondent No.3, produced as Annexure-B as invalid; v) Pass any order, as may be deemed necessary in the interests 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:23270 WP No. 14341 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:23270 WP No. 14341 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:23270 WP No. 14341 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:23270 WP No. 14341 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 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:23270 WP No. 14341 of 2021 ORDER (i) The writ petition is allowed. (ii) The impugned demand notice dated 08.03.2021 issued by respondent No.3 as per Annexure-C is hereby set-aside. (iii) Respondent No.2 - BBMP is hereby directed to issue fresh/modified sanction plan as the case may be. (iv) Respondent No.2 - 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. (v) It is made clear that the issuance of the building license and approval 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 subjected - 10 - HC-KAR NC: 2025:KHC:23270 WP No. 14341 of 2021 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.: 41