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2025 DAILYLAW 49121 (KAR)

M/S BREN CORPORATION v. THE STATE OF KARNATAKA

WP/7425/2022 · 2025-06-30

Sachin Shankar Magadum

body2025

Judgment text

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- 1 - HC-KAR NC: 2025:KHC:23159 WP No. 7425 of 2022 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.7425 OF 2022 (LB-BMP) BETWEEN: M/S. BREN CORPORATION A PROPRIETARY CONCERN HAVING ITS OFFICE AT PLOT NO.61, 3RD FLOOR, BREN BALAVANA, 5TH A BLOCK, KORAMANGALA, BANGALORE-560 095 REPRESENTED BY ITS SOLE PROPRIETOR MR. J. BOOPESH REDDY. …PETITIONER (BY SRI MUNIMANJU H.M., ADVOCATE) AND: 1. THE STATE OF KARNATAKA THE URBAN DEVELOPMENT DEPARTMENT 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. Digitally signed by MAHALAKSHMI B M Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:23159 WP No. 7425 of 2022 3. BRUHAT BANGALORE MAHANAGARA PALIKE N.R. SQUARE, BANGALORE-560 002 REPRESENTED BY ITS COMMISSIONER. 4. THE JOINT DIRECTOR (TOWN PLANNING-NORTH) BRUHAT BANGALORE MAHANAGARA PALIKE, ANNEX BUILDING, HEAD OFFICE BUILDING, N.R. SQUARE, BANGALORE-560 002. …RESPONDENTS (BY SMT. SPOORTHY V., HCGP FOR R-1 & R-2; SRI BHANU PRAKASH, 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.1/2022) NOTIFIED ON 13/01/2022 (ANNEXURE-Q) AS BEING ULTRA VIRES THE CONSTITUTION IN SO FAR THE PETITIONER IS CONCERNED IN SO FAR THE PETITIONER IS CONCERNED; DECLARE THAT KARNATAKA MUNICIPAL CORPORATIONS AND CERTAIN OTHER LAW (AMENDMENT) ACT, 2021 (KARNATAKA ACT NO.01/2022) NOTIFIED ON 13/01/2022 (ANNEXURE-Q) IS IN VIOLATION/CONTRARY TO THE DECISION OF THIS HON BLE COURT IN WP NO.4601/2020 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:23159 WP No. 7425 of 2022 ORAL ORDER The captioned petition is filed seeking following reliefs: “i) 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 produced at ANNEXURE-Q as being ultra vires the Constitution in so far the Petitioner is concerned in so far the Petitioners are concerned. ii) To declare that Karnataka Municipal Corporations and Certain Other Law (Amendment) Act, 2021 (Karnataka Act No.01 of 2022) notified on 13/01/2022 produced at ANNEXURE-Q is in violation/contrary to the decision of this Hon'ble Court in W.P.No.4601/2020. Vide ANNEXURE-M. iii) Grant an order, direction or writ in the nature of certiorari quashing the Office Order No.HaNiNaYo/PR/461/2021-22 dated 09/12/2021 issued by Respondent No.3 as contained in ANNEXURE-P in so far the Petitioners are 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) insofar as - 4 - HC-KAR NC: 2025:KHC:23159 WP No. 7425 of 2022 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 produced at ANNEXURE-G 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 produced at Annexure-J in so far the Petitioners are 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-K 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 at Annexure-L in so far the Petitioner is concerned. ix) Issue a writ or order by way of certiorari quashing the demand notice dated nil, bearing L.P. No.BBMP/Addl.Dir/JDSOUTH/0029/21-22, issued by the Respondent No.4 produced at Annexure-C for demanding in so far it is concerned to Ground rent, GST - 5 - HC-KAR NC: 2025:KHC:23159 WP No. 7425 of 2022 on Ground rent, License fee, scrutiny fee, Betterment fee for building, Betterment fee for site, security deposit, Cess for water supply scheme, Surcharge for formation outer ring road, Cess for improvement of slum, Surcharge for Mass Rapid Transport System, 5% levy service charges payable to BBMP and upfront labour cess and 1% service chargers on labour cess to BBMP 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 fees for building, Betterment fees for site, security deposit, Cess for water supply scheme, Surcharge for formation outer ring road, Cess for improvement of slum and Surcharge for Mass Rapid Transport System, 5% levy service charges payable to BBMP and upfront labour cess and 1% service chargers on labour cess to BBMP 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 - 6 - HC-KAR NC: 2025:KHC:23159 WP No. 7425 of 2022 W.P.No.36017/2018 and connected matters(herein referred to as “Sunderam Shetty”), have 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. 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 - 7 - HC-KAR NC: 2025:KHC:23159 WP No. 7425 of 2022 relevant bye-laws and government circulars have been set aside. 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. L.P.No.BBMP/Addl.Dir/ JDSOUTH/0029/21-22, issued by respondent No.4 as per Annexure-C is hereby set-aside. (iii) Respondent-BBMP is hereby directed to issue fresh/modified plan as the case may be. (iv) Respondent-BBMP are hereby directed to forthwith process the petitioner’s - 8 - HC-KAR NC: 2025:KHC:23159 WP No. 7425 of 2022 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 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. Pending applications, if any, are also disposed off. Sd/- (SACHIN SHANKAR MAGADUM) JUDGE MBM List No.: 2 Sl No.: 1