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2025 DAILYLAW 51392 (KAR)

M/S. SJR PRIME HOMES PVT LTD., v. STATE OF KARNATAKA

WP/3337/2021 · 2025-06-24

Sachin Shankar Magadum

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Judgment text

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- 1 - HC-KAR NC: 2025:KHC:22984 WP No. 3337 of 2021 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 24TH DAY OF JUNE, 2025 BEFORE THE HON'BLE MR JUSTICE SACHIN SHANKAR MAGADUM WRIT PETITION NO.3337 OF 2021 (LB-BMP) BETWEEN: M/S. SJR PRIME HOMES PVT. LTD., A COMPANY REGISTERED UNDER THE PROVISIONS OF COMPANIES ACT, 1956 AND HAVING ITS REGISTERED OFFICE AT NO.1, SJR PRIMUS, 7TH FLOOR, KORAMANGALA INDUSTRIAL LAYOUT, 7TH BLOCK, KORAMANGALA, BANGALORE 3 560 095. REPRESENTED BY ITS AUTHORIZED SIGNATORY, MR. V. NARASIMHA REDDY, AGED ABOUT 36 YEARS. &PETITIONER (BY SRI. RAJU S, ADVOCATE) AND: 1. STATE OF KARNATAKA, REPRESENTED BY ITS SECRETARY, URBAN DEVELOPMENT DEPARTMENT, 4TH FLOOR, VIKAS SOUDHA, DR. AMBEDKAR VEEDHI, BENGALURU 3 560 001. Digitally signed by SHARADAVANI B Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:22984 WP No. 3337 of 2021 2. STATE OF KARNATAKA, DEPARTMENT OF LABOUR, VIKASA SOUDHA, BENGALURU 3 560 001. REPRESENTED BY ITS SECRETARY. 3. THE BRUHAT BENGALURU MAHANAGARA PALIKE, N.R.SQUARE, BENGALURU 3 560 002. REPRESENTED BY ITS COMMISSIONER. 4. THE JOINT DIRECTOR, (BUILDING LICENSE DIRECTORY NORTH), BRUHAT BENGALURU MAHANAGRA PALIKE, N.R.SQUARE, BENGALURU 3 560 002. &RESPONDENTS (BY SRI.BOPANNA B, AGA FOR R1 AND R2; SRI.PAWAN KUMAR, ADVOCATE FOR R3 AND R4) THIS W.P. IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH PROVISIONS OF SECTION 18-A OF THE KARNATAKA TOWN AND COUNTRY PLANNING ACT 1961 BROUGHT INTO EFFECT BY KARNATAKA ACT NO.23 OF 2004 BY THE R-1 AT ANNEXURE-E IN SO FAR 18-A(i) AND (iv) OF THE KARNATAKA ACT NO.23 OF 2004 IS CONCERNED 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:22984 WP No. 3337 of 2021 ORAL ORDER Petitioner, in the captioned petition has sought for following reliefs : (a) 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 brought into effect by Karnataka Act No.23 of 2004 by the 1st Respondent at ANNEXURE-E in so far as 18- A(i) and (iv) of Karnataka Act No.23 of 2004 is concerned. (b) grant an order, direction or writ in the nature of Certiorari quashing the Notification issued by the 1st Respondent bearing No. UDD 3 TPP 2015dated 25.02.2020 as contained in ANNEXURE-F in sofar as the amended Rule 37-A and Rule 37-C are concerned; (c) issue a writ of certiorari or similar writ or order or direction to quash the demand notice No.BBMP/Addl. Dir/JD North/LP/0014/2020- 21 dated 10.02.2021 vide ANNEXURE-C issued by respondent No.4 in so far as the demand of Rs.18,80,991/- towards Ground Rent, Rs.3,38,578/- towards GST of 18% on Ground Rent, Rs.1,98,251/- towards security - 4 - HC-KAR NC: 2025:KHC:22984 WP No. 3337 of 2021 deposit, Rs.37,61,981/- towards License Fee, Rs.1,88,099/- towards Scrutiny Fee, Rs.14,40,670/- towards Water Supply, Rs.14,40,670/- towards Ring Road, Rs.7,20,335/- towards Slum Development, Rs.36,01,674/- towards Transportation charges (MRTS) and Rs.3,20,000/- towards II Karnataka State Building and other Construction Workers Welfare Board labour cess is concerned. (d) Issue Writ of Certiorari quashing the Government Order issued by the 2nd 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-G (e) Issue a writ of Mandamus or any other appropriate writ or order or direction declaring that Bye-law No.3.9 in the Bengaluru Mahanagara Palike Building Bye- laws, 2003 framed under the Karnataka Municipal Corporations Act as unconstitutional, arbitrary, illegal and ultra vires; - 5 - HC-KAR NC: 2025:KHC:22984 WP No. 3337 of 2021 (f) issue writ of mandamus or similar writ or order or direction directing the respondent Nos.3 and 4 to issue building revised plan and license pursuant to their communication issued by the respondent No.4 without insisting for payment of amount mentioned above. (g) issue any other appropriate writ or order or direction 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, License Fee, Building License Fee, and Scrutiny Fee under the relevant bye-laws as ultra vires the Act and quashed - 6 - HC-KAR NC: 2025:KHC:22984 WP No. 3337 of 2021 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. In light of the authoritative pronouncements, the present petition does not warrant separate - 7 - HC-KAR NC: 2025:KHC:22984 WP No. 3337 of 2021 adjudication and is liable to be allowed in terms of the operative directions issued in the aforesaid writ petitions. Accordingly, this Court proceeds to pass the following: ORDER (i) The writ petition is allowed. (ii) The impugned demand notice dated 10.02.2021 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 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 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 - 8 - HC-KAR NC: 2025:KHC:22984 WP No. 3337 of 2021 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 SMJ List No.: 2 Sl No.: 2