- 1 - HC-KAR NC: 2025:KHC:23477 WP No. 1565 of 2021 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 25TH DAY OF JUNE, 2025 BEFORE THE HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM WRIT PETITION NO.1565 OF 2021 (LB-BMP) BETWEEN: SOUJANYA PATEL TRUST NO.1056, 11TH MAIN 5TH A CROSS, RPC LAYOUT BENGALURU-560 104 REPRESENTED BY ITS SECRETARY MR. CHAITANYA. …PETITIONER (BY SRI ROHAN HOSMATH, ADVOCATE) AND: 1. STATE OF KARNATAKA URBAN DEVELOPMENT DEPARTMENT AMBEDKAR VEEDHI VIKASA SOUDHA BENGALURU-560 001 REPRESENTED BY ITS PRINCIPAL SECRETARY. 2. BRUHAT BENGALURU MAHANAGARA PALIKE HUDSON CIRCLE, N.R. SQUARE BENGALURU-560 002 REPRESENTED BY ITS COMMISSIONER. 3. ASSISTANT DIRECTOR TOWN PLANNING DEPARTMENT BRUHAT BENGALURU MAHANAGARA PALIKE RAJARAJESHWARI NAGAR BENGALURU-560 098. 4. THE DEPARTMENT OF LABOUR VIKASA SOUDHA, DR. B.R. AMBEDKAR VEEDHI BENGALURU-560 001 Digitally signed by NAGARAJA B M Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:23477 WP No. 1565 of 2021 REPRESENTED BY ITS UNDER SECRETARY. …RESPONDENTS (BY SMT. SPOORTHY V., H.C.G.P. FOR R-1 AND R-4; SMT. M.C. NAGASHREE, ADVOCATE FOR R-2 AND R-3) * * * THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, 1950, PRAYING TO QUASH THE NOTIFICATION ISSUED BY THE RESPONDENT NO.2 DATED 25-2-2020 ANNEXURE-E IN SO FAR AS THE INSERTED RULES 37-A AND 37-C ARE CONCERNED AND ETC. 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 Caption petition is filed seeking the following reliefs :- "a) Issue an order, direction or writ in the nature of Certiorari quashing the Notification issued by the Respondent No. 2 bearing No. UDD 3 TPP 2015 dated February 25, 2020 (Annexure-F) insofar as the inserted Rules 37-A and 37-C are concerned; b) Grant an order, direction or writ in the nature of Certiorari quashing the Government Order bearing No. LD/300/LET/2006 dated January 18, 2007 (Annexure-D) and the corrigendum order bearing No. - 3 - HC-KAR NC: 2025:KHC:23477 WP No. 1565 of 2021 LD/300/LET/2006, dated February 28, 2007 (Annexure- E) issued by the Respondent No. 4 mandating upfront collection of labour welfare cess in so far the Petitioner; c) Issue a writ, order or direction in nature of a Certiorari as regards the levy sought to be imposed by the Impugned Demand Notice (Annexure-A) bearing No. BBMP/Ad.Com/RJH/1666/20- 21 dated 16.01.2021 issued by Respondent No. 3 in so far as Labour Cess for a sum of Rs. 1,22,000/-; d) Issue a writ, order or direction in nature of a Certiorari as regards the levy sought to be imposed by the Impugned Demand Notice (Annexure-A) bearing No. BBMP/Ad.Com/RJH/1666/20- 21 dated 16.01.2021 issued by Respondent No. 3 in so far as levy of ground rent for a sum of Rs.1,29,821/-; e) Issue a writ, order or direction in nature of a Certiorari as regards the levy sought to be imposed by the Impugned Demand Notice (Annexure-A) bearing No. BBMP/Ad.Com/RJH/1666/20- 21 dated 16.01-2021 issued by Respondent No. 3 in so far as Betterment Fee (Building) for a sum of Rs.67, 652/-, Betterment Fee (Site) for a sum of Rs. 48,43,516/-, Security Deposit for a sum of Rs. 67,652/-, Scrutiny Fee for a sum of Rs. 7,001/- and License Fee for a sum of Rs. 1,40,023/-; f) Declare that the Respondent Nos.2 and 3 (BBMP) has no authority to collect the taxes under the guise of - 4 - HC-KAR NC: 2025:KHC:23477 WP No. 1565 of 2021 collection of license fee, cess and other fees under various heads based on arbitrary rates and values; g) Issue a writ in the nature of Mandamus directing the Respondent Nos. 2 and 3 to collect fees as specified in the Bengaluru Mahanagara Palike Building Bye-laws, 2003 only; h) And grant such other relief or reliefs as this Hon'ble Court may deem fit to grant, based on the facts and 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. 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 - 5 - HC-KAR NC: 2025:KHC:23477 WP No. 1565 of 2021 Government Circulars dated 04.09.2015, 27.01.2017, and 30.03.2017. 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. 3. 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. 4. 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. - 6 - HC-KAR NC: 2025:KHC:23477 WP No. 1565 of 2021 5. Accordingly, this Court proceeds to pass the following: ORDER (i) The writ petition is allowed. (ii) The impugned demand notice dated 16.01.2021 issued by respondent No.3 as per Annexure-A is hereby set-aside. (iii) Respondent- BBMP is hereby directed to issue fresh sanction plan. (iv) Respondent- BBMP is hereby 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 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 subjected to the - 7 - HC-KAR NC: 2025:KHC:23477 WP No. 1565 of 2021 outcome of any appeal that may be filed by the BBMP against the judgment. 6. Pending applications, if any, are also disposed off. SD/- (SACHIN SHANKAR MAGADUM) JUDGE NG List No.: 2 Sl No.: 3