- 1 - HC-KAR NC: 2025:KHC:23167 WP No. 14297 of 2024 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.14297 OF 2024 (LB-BMP) BETWEEN: M/S. SATTVA DEVELOPERS PRIVATE LIMITED, A COMPANY REGISTERED COMPANIES ACT, 1956 NO.3, SALARPURIA WINDSOR, 4TH FLOOR, ULSOOR ROAD, BENGALURU-560042 REPRESENTED BY ITS LEGAL HEAD MR. ASHWIN SANCHETI. …PETITIONER (BY SRI ANUPARNA BORDOLOI, ADVOCATE) AND: 1. THE STATE OF KARNATAKA DEPARTMENT OF TOWN AND COUNTRY PLANNING REPRESENTED BY ITS CHIEF SECRETARY, VIDHANA SOUDHA, BENGALURU-560001. 2. THE COMMISSOIONER BRUHAT BENGALURU MAHANAGARA PALIKE, N.R. SQUARE, BANGALORE-560002. 3. THE JOINT DIRECTOR (TOWN PALNNING) (SOUTH ZONE) BRUHAT BENGALURU MAHANAGARA PALIKE, N.R. SQUARE, BANGALORE-560002. …RESPONDENTS (BY SMT. SPOORTHY V., HCGP FOR R-1; SRI K.B. MONESH KUMAR, ADVOCATE FOR R-2 & R-3) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT IN THE NATURE OF CERTIORARI OR ANY OTHER ORDER APPROPRIATE WRIT Digitally signed by MAHALAKSHMI B M Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:23167 WP No. 14297 of 2024 OR ORDER TO QUASH THE ENTIRE KARNATAKA MUNICIPAL CORPORATIONS AND CERTAIN OTHER LAW (AMENDMENT) ACT, 2021 (KARNATAKA ACT 01 OF 2022) NOTIFIED ON 13.01.2022 IN BEARING NO.DPAL 50SHASANA 2021, BENGALURU AS THE SAME IS ULTRA VIRES OF THE CONSTITUTION. (ANNEXURE-A) 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 The captioned petition is filed seeking following reliefs: “A. Issue a writ in the nature of certiorari or any other order appropriate writ or order to quash the entire Karnataka Municipal Corporations and certain other law (Amendment) Act, 2021 (Karnataka Act 01 of 2022) notified on 13.01.2022 in bearing no.DPAL 50SHASANA 2021, Bengaluru as the same is ultra vires of the Constitution. (Annexure-A) B. Issue a writ in the nature of certiorari or any other order appropriate writ or order to quash the Office order bearing No.HaNiNaYo/PR/461/2021-22 dated 09.03.2022 issued by Respondent No.2 as the same is illegal and highly arbitrary. (Annexure-B) C. Issue a writ in the nature of Certiorari or any other appropriate writ or order to quash the notification issued by Respondent No.1 bearing No.UDD 3 TPP 2015 dated 25.02.2020 insofar as the amended Rule 37A is concerned. (Annexure-C) - 3 - HC-KAR NC: 2025:KHC:23167 WP No. 14297 of 2024 D. Issue a writ in the nature of Certiorari or any other appropriate writ or order to quash the Circular issued by Respondent No.2 bearing No.He.Ni.Ka.Pa.Ko/PR/320/2020-21 dated 14.08.2020 insofar as the amended Rule 37A is concerned. (Annexure-D) E. Issue a writ in the nature of certiorari or any other writ, order to set aside the demand notice issued by Respondent No.3 dated 23.05.2024 vide No. BBMP/Addl.Dir/JDTP (S)/LP 0267/15-16 insofar as the ground rent amounting to Rs. 82,18,337.00/- along with GST and SGST calculated at 18% amounting to Rs.14,79,301.00/- and scrutiny fee amounting to Rs.5,47,890.00/- are concerned at (Annexure - E). F. Issue writ declaring that the action of the Respondent No. 3 in insisting on payment Ground Rent with GST and scrutiny fee by the Petitioner vide No.BBMP/Addl.Dir/JDTP (S)/LP 0267/15-16 dated 23.05.2024 as highly arbitrary and illegal (Annexure - E). G. Issue a writ in the nature of mandamus or any writ, or order, directing the Respondent No.3 to issue occupancy certificate without insisting on payment of Ground Rent with GST and scrutiny fee by the Petitioner. H. Issue a writ in the nature of mandamus or any writ, or order, declaring the ground rent along with the GST and scrutiny fee levied on the petitioner for obtaining occupancy certificate is bad in law. - 4 - HC-KAR NC: 2025:KHC:23167 WP No. 14297 of 2024 I. Grant such other relief that this Hon'ble Court may deem fit in the facts and circumstances of the above case.” 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 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 - 5 - HC-KAR NC: 2025:KHC:23167 WP No. 14297 of 2024 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 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 23.05.2024 issued by respondent No.3 as per Annexure-E is hereby set-aside. (iii) Respondent - BBMP is hereby directed to issue Occupancy Certificate in accordance - 6 - HC-KAR NC: 2025:KHC:23167 WP No. 14297 of 2024 with law in compliance of the 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 filing a writ appeal against the reported judgment. (vi) If the occupancy certificate is issued, the same shall be subject to the outcome of any appeal that may be filed by the BBMP against the said judgment. Sd/- (SACHIN SHANKAR MAGADUM) JUDGE MBM List No.: 2 Sl No.: 8