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2025 DAILYLAW 54455 (KAR)

M/S. BKG ENTERPRISES LLP v. STATE OF KARNATAKA

WP/18407/2021 · 2025-07-02

Sachin Shankar Magadum

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Judgment text

Extracted from the PDF above. The PDF is authoritative.

- 1 - HC-KAR NC: 2025:KHC:26483 WP No. 18407 of 2021 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 2ND DAY OF JULY, 2025 BEFORE THE HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM WRIT PETITION NO.18407 OF 2021 (LB-BMP) BETWEEN: M/S. BKG ENTERPRISES LLP NO.2198, BKG HOUSE, KHB COLONY, SANDUR TALUK BELLARY DISTRICT-583 119 REPRESENTED BY ITS PARTNER SRI B. RUDRA GOWDA. …PETITIONER (BY SRI MONICA PATIL, ADVOCATE) AND: 1. STATE OF KARNATAKA URBAN DEVELOPMENT DEPARTMENT, VIKASA SOUDHA BENGALURU-560 001 REPRESENTED BY ITS CHIEF SECRETARY. 2. THE DEPARTMENT OF PARLIAMENTARY AFFAIRS AND LEGISLATION VIKASA SOUDHA DR. B.R. AMBEDKAR VEEDHI BENGALURU-560 001 REPRESENTED BY ITS SECRETARY. 3. BRUHAT BENGALURU MAHANAGARA PALIKE HUDSON CIRCLE BENGALURU-560 027 REPRESENTED BY ITS COMMISSIONER. 4. THE COMMISSIONER Digitally signed by SHARADAVANI B Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:26483 WP No. 18407 of 2021 OFFICE OF THE COMMISSIONER BRUHAT BENGALURU MAHANAGARA PALIKE NARASIMHA RAJA CIRCLE BENGALURU-560 002. …RESPONDENTS (BY SRI BOPANNA B., AGA FOR R-1 AND R-2; SRI S.N. PRASHANTH CHANDRA, ADVOCATE FOR R-3 AND R-4) THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH BYE-LAW 3.9. OF THE BANGALORE MAHANAGARA PALIKE BUILDING BYE-LAW 2003 AS CONSTITUTION ARBITRARY ILLEGAL AND ULTRA VIRES AND QUASH THE KARNATAKA TOWN AND COUNTRY PLANNING (AMENDMENT) ACT 1998 (KARNATAKA ACT NO.23 OF 2004) ANNEXURE-B IN SO FAR AS THE INSERTION OF SECTION 18-A INTO THE KARNATAKA TOWN AND COUNTRY PLANNING 1961 ARE CONCERNED. THIS WRIT 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 the following reliefs: a) Declare and strike down the Bye-Law 3.9 of the Bangalore Mahanagara Palike Building Bye-Laws, 2003 as unconstitutional, arbitrary, illegal and ultra-vires of - 3 - HC-KAR NC: 2025:KHC:26483 WP No. 18407 of 2021 Article 14 of the Constitution, in the interest of justice and equity; b) Declare and strike down the Karnataka Town and Country Planning (Amendment) Act, 1998 [Karnataka Act No. 23 of 2004] (Annexure B), insofar as the insertion of Section 18-A into the Karnataka Town and Country Planning Act, 1961 is concerned as unconstitutional, arbitrary, illegal and ultra-vires Article 14 of the Constitution, in the interest of justice and equity; c) Grant an order, direction or writ in the nature of Certiorari quashing the Notification issued by the Respondent No. 1 bearing No. UDD 3 TPP 2015 dated February 25, 2020 (Annexure C) insofar as the inserted Rules 37-A and 37-C are concerned; d) Grant an order, direction or writ in the nature of Certiorari quashing the circular dated August 14, 2020, issued by the Respondent No. 4 (Annexure F) insofar the Petitioner is concerned; e) Grant an order, direction or writ in the nature of Certiorari quashing the Demand Notice bearing No. BBMP/EoDB/CH/17837/21-22 dated September 18, 2021 (Annexure A), with respect to Scrutiny Fee at Serial No. 1, License Fee at Serial No. 2, Betterment Fees for Building at Serial No. 3, Betterment Fees for Site Area at Serial No. 4, Security Deposit at Serial No. 5, Lake rejuvenation cess at Serial No. 6, Administrative charges at Serial No. 7, Ground rent at Serial No. 8, Water supply cess at Serial No. 11, Ring Road cess at Serial No. 12, - 4 - HC-KAR NC: 2025:KHC:26483 WP No. 18407 of 2021 Slum cess at Serial No. 13 and MRTS Cess at Serial No. 14; f) Grant an order, direction or writ in the nature of Mandamus, directing the Respondent Nos. 3 and 4 to issue the sanction plan/approval to the Petitioner pursuant to its Application dated September 06, 2021 (Annexure E), without insisting on the payment of Scrutiny Fee at Serial No. 1, License Fee at Serial No. 2, Betterment Fees for Building at Serial No. 3, Betterment Fees for Site Area at Serial No. 4, Security Deposit at Serial No. 5, Lake rejuvenation cess at Serial No. 6, Administrative charges at Serial No. 7, Ground rent at Serial No. 8, Water supply cess at Serial No. 11, Ring Road cess at Serial No. 12, Slum cess at Serial No. 13 and MRTS Cess at Serial No. 14; g) Direct the Respondent No. 3 to refund the entire sum of Rs.66,65,398/- (Rupees Sixty Six Lakhs Sixty Five Thousand Three Hundred and Ninety Eight Only) paid under protest by the Petitioner herein on December 31, 2021. h) Grant such other reliefs as this Hon'ble Court deems fit in the above circumstances of the case, in the interests 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 - 5 - HC-KAR NC: 2025:KHC:26483 WP No. 18407 of 2021 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. - 6 - HC-KAR NC: 2025:KHC:26483 WP No. 18407 of 2021 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 18.09.2021 issued by respondents No.3 and 4 as per Annexure-A 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 petitioner’s application seeking building license and sanction of the building plan, strictly in accordance with law. - 7 - HC-KAR NC: 2025:KHC:26483 WP No. 18407 of 2021 (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. (vii) Insofar as payment made, the petitioner shall make a representation to the Respondent- BBMP for refund. The Respondent-BBMP shall consider the same 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 HDK