- 1 - HC-KAR NC: 2025:KHC:21299 WP No. 256 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.256 OF 2021 (LB-BMP) BETWEEN: M/S. SUVILAS REALITIES PVT. LTD., FORMERLY KNOWN AS M/S SUVILAS PROPERTIES PVT. LTD., NO.100 (OLD 52), DONNABAS TOWER, RAILWAY PARALLEL ROAD, KUMARA PARK WEST, BANGALORE – 560 020, REPRESENTED BY ITS MANAGING DIRECTOR …PETITIONER (BY SRI. VIVEKANANDA T.P., ADVOCATE) AND: 1. STATE OF KARNATAKA REPRESENTED BY ITS SECRETARY URBAN DEVELOPMENT DEPARTMENT, 4TH FLOOR, VIKASA SOUDHA, DR. AMBEDKAR VEEDHI, BANGALORE – 560 001. 2. STATE OF KARNATAKA DEPARTMENT OF LABOUR, VIKASA SOUDHA, BANGALORE – 560 001, REPRESENTED BY ITS SECRETARY 3. THE BRUHAT BANGALORE MAHANAGARA PALIKE N R SQUARE, Digitally signed by AL BHAGYA Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:21299 WP No. 256 of 2021 BANGALORE – 560 002, REPRESENTED BY ITS COMMISSIONER 4. THE JOINT DIRECTOR (TOWN PLANNING NORTH) BRUHAT BANGALORE MAHANAGARA PALIKE, N.R.SQUARE, BANGALORE – 560 002. 5. KARNATAKA BUILDING AND OTHER CONSTRUCTION WORKERS WELFARE BOARD, KOUSALYA BHAVAN, BANNERGHATTA ROAD, BANGALORE – 560 029. REPRESENTED BY ITS CHIEF EXECUTIVE OFFICER …RESPONDENTS (BY SMT. SPOORTHY.V, HCGP FOR R1 AND R2; SRI. B.S.KARTHIKEYAN, ADV., FOR R3 AND R4) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE DIRECTION TO QUASH THE DEMAND NOTICE SIGNED ON 28.10.2020 AT ANNEXURE-H ISSUED BY THE R-4 ONLY IN SO FAR AS THE DEMAND OF RS.3.67.723/- TOWARDS SCRUTINY FEE, RS.73,54,462 TOWARDS LICENSE FEE, RS.43,39,133/- TOWARDS GROUND RENT AND GST, RS.43,39,133/- TOWARDS BETTERMENT FEE FOR BUILDING AS PER SECTION 18 OF KTCP ACT RS.81,71,624/- TOWARDS SECURITY DEPOSIT IN THIS W.P. IN PETITIONER IS ALSO CHALLENGING THE DEMAND TOWARDS WORKERS WELFARE FUND (LABOUR CESS) OF RS.1,26,62,000/- AND ALSO 1 PERCENT OF THE SERVICES CHARGES IN SUM OF RS.9,47,942/- PAYABLE TO THE CORPORATION FROM OUT OF THE LABOUR WELFARE FUND AND DEMAND OF SURCHARGE OF RS.26,25,998/- TOWARDS WATER SUPPLY SCHEME (BWSSB) RS.26,25,995/- TOWARDS RING ROAD (BDA) RS.13,12,999/- TOWARDS IMPROVING SLUMS(KSCB) RS.65,64,996/- TOWARDS MASS RAPID TRANSPORT SYSTEM (BDA) ARE CONCERNED AND ETC., - 3 - HC-KAR NC: 2025:KHC:21299 WP No. 256 of 2021 THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE SACHIN SHANKAR MAGADUM 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./JDNORTH/0007/20-21 dated nil signed on 28.10.2020 at Annexure-H issued by the respondent No.4 only in so far as the demand of Rs.3,67,723/- towards Scrutiny Fee, Rs.73,54,462/- towards License Fee, Rs.43,39,133/- towards Ground Rent and GST, Rs.43,39,133/- towards betterment fee for building, as per section 18 of KTCP Act,Rs.81,71,624/- towards security deposit. In this Writ Petition, the petitioner is also challenging the demand towards workers welfare fund(Labour Cess) of Rs. 1,26,62,000/- and also 1% of the services charges in a sum of Rs.9,47,942/- payable to the Corporation from out of the Labour Welfare Fund and demand of surcharge of Rs.26,25,998/-towards water supply scheme (BWSSB), Rs.26,25,998/- towards Ring Road(BDA), Rs.13,12,999/- towards improving slums(KSCB), Rs.65,64,996/- towards Mass Rapid Transport System(BDA), 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 2ªd Respondent bearing G.O.No.LD 300 LET 2006 dated 18.01.2007 and the - 4 - HC-KAR NC: 2025:KHC:21299 WP No. 256 of 2021 corrigendum bearing No. LD 300 LET 2006 dated 28.02.2007 directing upfront collection of labour welfare cess, as contained in ANNEXURE –L 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 brought into effect by Karnataka Act No.23 of 2004 by the 1" Respondent at Annexure-N 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 ist Respondent bearing No. UDD 3 TPP 2015 dated 25.02.2020 as contained in ANNEXURE-P 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 building plan and license pursuant to the demand notice No.BBMP/Addl.Dir./JDNORTH / 0007/20-21 dated nil signed on 28.10.2020 at Annexure-H issued by the respondent No.4. vii. Issue Writ of Mandamus to Respondents No.3 and 5 to refund an amount of Rs.1,26,62,000/- deposited by the petitioner through Receipt No.HO/17297/2020 dated 14.12.2020 at Annexure-J and Rs.1,26,99,000/- deposited through receipt No.BBMP/14465/CH/20-21 dated 18.12.2020 at Annexure-K. viii. 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 - 5 - HC-KAR NC: 2025:KHC:21299 WP No. 256 of 2021 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 quashed all related Circulars and declared Clause 3.8 of the BBMP - 6 - HC-KAR NC: 2025:KHC:21299 WP No. 256 of 2021 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. Accordingly, this Court proceeds to pass the following: ORDER (i) The writ petition is allowed. (ii) The impugned demand notice dated NIL issued by respondent No.4 as per Annexure-H is hereby set-aside. - 7 - HC-KAR NC: 2025:KHC:21299 WP No. 256 of 2021 (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. (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 payments made, petitioners shall make a representation to respondent- - 8 - HC-KAR NC: 2025:KHC:21299 WP No. 256 of 2021 BBMP for refund. Respondent-BBMP shall consider the same and pass orders in accordance with law, within a period of 8 weeks from the receipt of such representation. Pending applications, if any, are also disposed off. SD/- (SACHIN SHANKAR MAGADUM) JUDGE PB List No.: 2 Sl No.: 5