- 1 - HC-KAR NC: 2025:KHC:21302 WP No. 5444 of 2021 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 19TH DAY OF JUNE, 2025 BEFORE THE HON'BLE MR JUSTICE SACHIN SHANKAR MAGADUM WRIT PETITION NO. 5444 OF 2021 (LB-BMP) BETWEEN: MRO-TEK REALITY LIMITED MRO TEK REALITY LIMITED (FORMERLY KNOWN AS MRO TEK LIMITED) A COMPANY REGISTERED UNDER THE COMPANIES ACT, 1956 HAVING ITS REGISTERED OFFICE AT HEBBAL BELLARY ROAD, BANGALORE-560 024 REP BY ITS GP HOLDER M/S. UMIYA BUILDERS AND DEVELOPERS, A PROPRIETARY CONCERN HAVING ITS OFFICE AT NO.29/3, H.M.STRFFORD, II FLOOR, 7TH CROSS ROAD, VASANTHANAGAR, BANGALORE-560 052 REP BY PROPRIETOR ANIRUDDH MEHTA &PETITIONER (BY SRI. VIVEKANANDA T P., ADVOCATE) AND: 1. STATE OF KARNATAKA REP BY ITS SECRETARY URBAN DEVELOPMENT DEPARTMENT 4TH FLOOR, VIKAS SOUDHA, DR.AMBEDKAR VEEDHI BANGALORE - 560 001. Digitally signed by AL BHAGYA Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:21302 WP No. 5444 of 2021 2. STATE OF KARNATAKA DEPARTMENT OF LABOUR VIKAS SOUDHA, BANGALORE REP BY ITS SECRETARY 3. THE BRUHAT BANGALORE MAHANAGARA PALIKE, N.R.SQUARE, BANGALORE-560 002. REP BY ITS COMMISSIONER. 4. THE JOINT DIRECTOR (TOWN PLAINING-NORTH) BRUHAT BANGALORE MAHANAGARA PALIKE) N.R.SQUARE, BANGALORE-560 002. &RESPONDENTS (BY SMT. SPOORTHY V., HCGP FOR R1; SMT. SINCHANA.M.R, ADVOCATE FOR R3 AND R4) THIS WP IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE DEMAND NOTICE DTD.21.2.2021 AT ANNEXURE-F ISSUED BY THE R-4 ONLY IN SO FAR AS THE DEMAND OF RS.21,29,519/- TOWARDS SCRUTINY FEE, RS.3,94,87,367/- TOWARDS GROUND RENT AND GST, RS.1,32,02.961/- TOWARDS LICENSE FEE, RS.25,90,846/- TOWARDS BETTERMENT FEE FOR BUILDING RS.25,90,846/- TOWARDS SECURITY DEPOSIT, RS.42,226/- TOWARDS 1 PERCENT SERVICE CHARGES ON LABOUR CESS RS.38,76,221/- CESS TOWARDS WATER SUPPLY SCHEME (BWSSB) RS.38,76,221/- CESS TOWARDS RING ROAD(BDA) RS.19,38,110/- CESS TOWARDS IMPROVING THE SLUMS (KSCB) RS.96,90,552/- CESS TOWARDS MASS RAPID TRANSPORT SYSTEM (BDA) RS.10,20,058/- TOWARDS 5 PERCENT SERVICE CHARGE ON SURCHARGES PAYABLE TO BBMP AND ALSO THE DEMAND OF RS.41,81,000/- TOWARDS LABOUR CESS ARE CONCERNED AND ETC., THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN 8B9 GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE SACHIN SHANKAR MAGADUM - 3 - HC-KAR NC: 2025:KHC:21302 WP No. 5444 of 2021 ORAL ORDER Petitioner in the captioned petition has sought the following reliefs: i. Issue a writ of certiorari or similar writ or order or direction to quash the demand notice No.BBMP/Addl.Dir/JD NORTH/0097/16-17 dated 21.02.2021 at Annexure -F issued by the respondent No.4 only in so far as the demand of Rs.21,29,519/- towards Scrutiny fee, Rs.3,94,87,367/- towards Ground Rent and GST, Rs.1,32,02,951/- towards License fee, Rs.25,90,846/- towards Betterment Fee for Building, Rs.25,90,846/- towards security deposit, Rs.42,226/- towards 1% service charges on labour cess, Rs.38,76,221/- cess towards Water supply scheme(BWSSB) Rs.38,76,221/- cess towards Ring RoaBDA), Rs.19,38,110/- cess towards Improving the slums(KSCB), Rs.96,90,552/- cess towards Mass Rapid Transport System(BDA), Rs.10,20,058/- towards 5% service charges on surcharges payable to BBMP and also the demand of Rs.41,81,000/- towards Labour cess 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 Writ of Certiorari quashing the Government Order issued by the 2d Respondent bearing G.O.No.LD 300 LET 2006 dated 18.01.2007 and the corrigendum bearing No. LD 300 LET 2006 dated 28.02.2007 directing upfront collection of labour welfare cess, as contained in ANNEXURE 3G iv. 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 - 4 - HC-KAR NC: 2025:KHC:21302 WP No. 5444 of 2021 brought into effect by Karnataka Act No.23 of 2004 by the 1" Respondent at Annexure-J in so far as 18-A(i) and (iv) of 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 lst Respondent bearing No. UDD 3 TTP 2015dated 25.02.2020 as contained in ANNEXURE-K in so far as the amended Rule 37-A and Rule 37-C are concerned; vi. Issue writ of mandamus or similar writ or order or direction directing the respondent Nos. 3 and 4 to issue modified building plan and license pursuant to the No.BBMP/Addl.Dir/JD NORTH/0097/16-17 dated 21.02.2021 at Annexure-E issued by the respondent No.4 without insisting for payment of aforesaid demands. vii. 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. 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, - 5 - HC-KAR NC: 2025:KHC:21302 WP No. 5444 of 2021 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 relevant bye-laws and government circulars have been set aside. - 6 - HC-KAR NC: 2025:KHC:21302 WP No. 5444 of 2021 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 21.02.2021 issued by respondent No.4 as per Annexure-F is hereby set-aside. (iii) Respondent - BBMP is hereby directed to issue modified sanction plan . (iv) Respondent - BBMP is directed to forthwith process the petitioner9s 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 - 7 - HC-KAR NC: 2025:KHC:21302 WP No. 5444 of 2021 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 PB List No.: 2 Sl No.: 8