- 1 - HC-KAR NC: 2025:KHC:21296 WP No. 30315 of 2018 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.30315 OF 2018 (LB-BMP) BETWEEN: 1. M/S SRI. RAMA METAL WORKS A PARTNERSHIP FIRM INDUSTRIAL PREMISES BEARING PLOT N O.21-E,SY.NO.9, KIADB INDUSTRIAL AREA, KUMBALAGODU, 2ND PHASE, BENGALURU - 560 074 REPRESENTED BY ITS PARTNER MR. CHAND R.BELANI 2. M/S PRIDE & EXPERT PROPERTIES PRIVATE LIMITED, A COMPANY INCORPORATED UNDER THE COMPANIES ACT,1956 HAVING ITS OFFICE AT: PRIDE HULKUL,NO.901,9TH FLOOR, 116,LALBAGH ROAD, BENGALURU - 560 027. REPRESENTED BY ITS DIRECTOR MR. B.R.RAVINDRA &PETITIONERS (BY SRI. SRIDHAR.G., ADVOCATE) AND: 1. STATE OF KARNATAKA REPRESENTED BY ITS SECRETARY URBAN DEVELOPMENT DEPARTMENT Digitally signed by AL BHAGYA Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:21296 WP No. 30315 of 2018 4TH FLOOR, VIKAS SOUDHA, AMBEDKAR VEEDHI, BENGALURU - 560 001. 2. BRUHAT BANGALORE MAHANAGARA PALIKE N.R.SQUARE, BENGALURU - 560 002. REPRESENTED BY ITS COMMISSIONER 3. JOINT DIRECTOR TOWN PLANNING(SOUTH) BRUHAT BANGALORE MAHANAGARA PALIKE, ANNEXE BUILDING, N.R.SQUARE, BENGALURU - 560 002. &RESPONDENTS (BY SMT. SPOORTHY.V., HCGP FOR R1; SRI. K.V.MOHAN KUMAR, ADVOCATE, FOR R2 AND R3) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO-QUASH THE IMPUGNED LETTER DATED 06.07.2018 PRODUCED AT ANNEXURE-E TO THE EXTENT OF CALLING UPON THE PETITIONERS HEREIN TO DEPOSIT A SUM OF INR.47,76,989/- TOWARDS GROUND RENT AS SPECIFIED IN THE CALCULATION SHEET AT ANNEXURE-F UNDER THE GUISE OF NECESSARY FEE OUT OF THE TOTAL SUM OF INR.56,10,000/- 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 ORAL ORDER Petitioners in the captioned petition have sought the following reliefs: - 3 - HC-KAR NC: 2025:KHC:21296 WP No. 30315 of 2018 A) Quash the impugned letter dated 06.07.2018 bearing No.BBMP/Addl.Dir/JD South/0071/13-14 produced at Annexure-E to the extent of calling upon the Petitioners herein to deposit a sum of INR. 47,76,989/- towards ground rent as specified in the calculation sheet at Annexure F under the guise of necessary fee out of the total sum of INR. 56,10,000/-. B) Direct the Respondents to refund to the 2nd Petitioner a sum of INR. 30,75,362/-paid by the 2nd Petitioner towards ground rent at the time for issuance of building sanction plan for the development of the Schedule Property, out the total sum of INR. 1,85,82,000 which was demanded vide correspondence dated 20.09.2014 bearing No. BBMP/Addl.Dir/JD South/0071/13-14 at Annexure-B. C) Direct the Respondents to issue Occupancy certificate for Wing 1 and 2 of Block A on the Schedule Property pursuant to the application dated 15.02.2018 at Annexure - D for grant of Occupancy Certificate. D) Grant such other and further relief/s including cost, as this Hon'ble Court deems fit in the facts and circumstances of the case and 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.36017/2018 and connected matters. The Co-ordinate Bench, while deciding the issue, has held that the bye-laws under which Ground Rent, License Fee, Building License fee, Scrutiny - 4 - HC-KAR NC: 2025:KHC:21296 WP No. 30315 of 2018 fee are levied are ultra vires the Act. The Co-ordinate Bench also quashed the circular dated 04.09.2015 and Government circulars dated 27.01.2017 and 30.03.2017. Therefore, this Court deems it fit to cull out the operative portion of the order, which reads as under; "ORDER (a) All the Writ Petitions are allowed. (b) The bye-laws under which Ground Rent, Licence Fee, Building Licence Fee, Scrutiny Fee, Security Deposit are all held ultravires the Act and are resultantly rendered unenforceable. (c)The Circular bearing No.ºÉ¤£ÀAiÉÆÃ/eÉ.r(G)/rJªÀiï3/¦Dgï/320/2015-16 dated 04.09.2015 stands quashed. (d) The Circular bearing No.£ÀCE 36 ¨ÉªÀÄ¥Áæ 2016 (¨sÁUÀ) dated 27.01.2017 and the Circular bearing No. ºÉ¤£ÀAiÉÆÃ/¦Dgï/1533/2016-17 dated 30.03.2017 demanding Lake Rejuvenation Fee are quashed. (e) Imposition of labour cess under the Welfare Cess Act is upheld, but its demand for payment upfront in terms of Government Orders dated 18.01.2007 and 28.02.2007 stands quashed. - 5 - HC-KAR NC: 2025:KHC:21296 WP No. 30315 of 2018 (f) The State or the BBMP is not precluded from bringing in the impugned levies under the provisions of the Act or the Rules by making suitable amendments to the Act and the Rules. 368 (g) Petitioners in all these petitions who have deposited certain amounts in terms of the interim order passed by this Court before this Court are entitled to refund of the amounts so deposited. (h) Insofar as refund in other cases who have paid to the Corporation under protest, they shall be entitled to such refund only if the same is not collected from the consumers of the apartments, businesses as the case would be. (i) Insofar as all other payments made, they would all be at liberty to give representation to the BBMP and the BBMP would consider the refund of the amounts, in accordance with law and the findings of this Court. (j) If representations are made by the petitioners for refund, the BBMP shall pass appropriate orders within 12 weeks from the date of such representations. In view of disposal of the petitions, all pending Interlocutory Applications also stand disposed." - 6 - HC-KAR NC: 2025:KHC:21296 WP No. 30315 of 2018 3. In the considered view of this Court, the issues raised in the present writ petition stand squarely covered by the authoritative pronouncement rendered by the Co- ordinate Bench of this Court in W.P.No.36017/2018 and connected matters. The Co-ordinate Bench, after examining the statutory framework and the impugned levy mechanisms adopted by the BBMP, categorically held that the imposition of Ground Rent, Licence Fee, Building Licence Fee, Scrutiny Fee, and Security Deposit lacked statutory sanction and were ultra vires the Karnataka Municipal Corporations Act, 1976. The Co-ordinate Bench further held that Clause 3.8 of the BBMP Building Bye- laws, 2003, which provided for imposition of Ground Rent, was also devoid of legal authority and consequently struck it down. The Court also quashed the impugned Circular dated 04.09.2015 issued by respondent No.4, as well as the Government Orders dated 27.01.2017 and 30.03.2017, which had directed collection of such fees without statutory backing. With specific reference to - 7 - HC-KAR NC: 2025:KHC:21296 WP No. 30315 of 2018 labour welfare cess, the Co-ordinate Bench upheld the competence of the State to levy the cess under the Building and Other Construction Workers9 Welfare Cess Act, 1996, but set aside the directive mandating its upfront collection through Government Orders dated 18.01.2007 and 28.02.2007, thereby rendering the demand raised in anticipation of sanction of building plans unlawful. The Co-ordinate Bench also clarified that the only charging provision available under the Act was sub- section (20-b) of Section 423, which merely enabled collection of fees for services relating to burial grounds and crematoria, and could not be relied upon for the imposition of unrelated charges such as ground rent or scrutiny fee. In light of these clear and binding findings, the controversy raised in the present writ petition does not survive for independent adjudication, as the grievance of the petitioner is directly addressed and resolved by the said judgment. Therefore, this Court is of the considered opinion that the present writ petition deserves to be - 8 - HC-KAR NC: 2025:KHC:21296 WP No. 30315 of 2018 allowed by applying the ratio and operative portion of the judgment rendered in W.P.No.36017/2018 and connected matters. 4. In view of the above, this Court proceeds to pass the following; ORDER (i) The writ petition is allowed. (ii) The impugned demand notice dated 06.07.2018 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 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 - 9 - HC-KAR NC: 2025:KHC:21296 WP No. 30315 of 2018 merely on the ground that the BBMP is contemplating to file an appeal against the reported judgment. (vi) If the occupancy certificate is issued, the same shall be subjected to the outcome of any appeal that may be filed by the BBMP against the judgment. (vii) Insofar as payments made, Petitioner shall make a representation to the Respondent-BBMP for the refund, Respondent- BBMP shall consider the representation and pass appropriate orders in accordance with law, within a period of 8 weeks of receipt of such representation. Pending applications, if any, are also disposed off SD/- (SACHIN SHANKAR MAGADUM) JUDGE PB List No.: 2 Sl No.: 2