- 1 - HC-KAR NC: 2025:KHC:27231 WP No. 18281 of 2019 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 4TH DAY OF JULY, 2025 BEFORE THE HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM WRIT PETITION NO.18281 OF 2019 (LB-TAX) BETWEEN: M/S. PRESTIGE NOTTINGHILL INVESTMENTS A PARTNERSHIP FIRM, REPRESENTED BY ITS MANAGING PARTNER, M/S. PRESTIGE ESTATES PROJECTS LIMITED, HAVING ITS REGISTERED OFFICE AT THE FALCON HOUSE, NO.1, MAIN GUARD CROSS ROAD, BENGALURU-560 001 ACTING THROUGH ITS AUTHORIZED SIGNATORY MR.T. ARVIND PAI. …PETITIONER (BY SRI RAGHURAM CADAMBI, ADVOCATE) AND: 1. THE STATE OF KARNATAKA REPRESENTED BY ITS ADDITIONAL CHIEF SECRETARY, URBAN DEVELOPMENT DEPARTMENT, VIDHANA SOUDHA, BENGALURU-560 001. 2. THE COMMISSIONER BRUHAT BENGALURU MAHANAGARA PALIKE, N.R. SQUARE, BENGALURU-560 002. 3. THE JOINT DIRECTOR TOWN AND COUNTY PLANNING (SOUTH) BRUHAT BENGALURU MAHANAGARA PALIKE, Digitally signed by MOUNESHWARAPPA NAGARATHNA Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:27231 WP No. 18281 of 2019 N.R. SQUARE, BENGALURU-560 002. …RESPONDENTS (BY SRI H.K. KENCHEGOWDA, AGA FOR R-1; SRI PRASHANTH CHANDRA S.N., ADVOCATE FOR R-2 AND R-3) * * * THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE DEMAND NOTICE ISSUED BY THE R-3 JOINT DIRECTOR PLANNING DATED 10.04.2019 (ANNEXURE-A) AND DIRECT THE R-2 AND 3 TO COLLECT THE FEES AS SPECIFIED IN THE BANGALORE MAHANAGARA PALIKE BUILDING BYELAWS 2003 ONLY. THIS WRIT PETITION, COMING ON FOR ORDERS, 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: Issue a writ in the nature of Certiorari quashing the demand notice issued by the respondent no.3 Joint Director Planning bearing no.BBMP/Addl.Dir /JDSOUTH/LP0392/14-15 dated 10.04.2019; (ANNEXURE A); B. Issue writ in the nature of Mandamus directing the respondents no.2 and 3 to collect the fees as specified in the Bangalore Mahanagara Palike Building Byelaws 2003 only; - 3 - HC-KAR NC: 2025:KHC:27231 WP No. 18281 of 2019 C. Issue a writ in the nature of certiorari quashing the demand notice issued by the third respondent bearing No.BBMP/Add.Dir/JD SOUTH/LP 0392/14-15 dated 05.01.2022 (Annexure-B); D. Grant such other relief or reliefs as this Hon'ble Court may deem fit, including cost of the petition. 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 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; "O R D E R (a) All the Writ Petitions are allowed. (b) The bye-laws under which Ground Rent, Licence Fee, Building Licence Fee, Scrutiny Fee, Security - 4 - HC-KAR NC: 2025:KHC:27231 WP No. 18281 of 2019 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. (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. - 5 - HC-KAR NC: 2025:KHC:27231 WP No. 18281 of 2019 (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." 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 - 6 - HC-KAR NC: 2025:KHC:27231 WP No. 18281 of 2019 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 labour welfare cess, the Co-ordinate Bench upheld the competence of the State to levy the cess under the Building and Other Construction Workers’ Welfare Cess Act, 1996, but set aside the directive mandating its upfront collection through Government Orders dated - 7 - HC-KAR NC: 2025:KHC:27231 WP No. 18281 of 2019 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 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; - 8 - HC-KAR NC: 2025:KHC:27231 WP No. 18281 of 2019 ORDER (i) The writ petition is allowed. (ii) The impugned demand notice dated 10.04.2019 issued by respondent No.3 as per Annexure-A 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 occupancy certificate shall not be withheld 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. - 9 - HC-KAR NC: 2025:KHC:27231 WP No. 18281 of 2019 Pending applications, if any, are also disposed off. Sd/- (SACHIN SHANKAR MAGADUM) JUDGE HDK List No.: 2 Sl No.: 49