- 1 - HC-KAR NC: 2025:KHC:23239 WP No. 18675 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.18675 OF 2021 (LB-BMP) BETWEEN: THE BENGALURU COMMERCIAL TRANSPORTERS CREDIT CO-OPERATIVE SOCIETY LTD. REPRESENTED BY PRESIDENT: SRI B. CHANNA REDDY AGED ABOUT 52 YEARS AND ITS SECRETARY SRI SHIVAKUMAR AGED ABOUT 44 YEARS. …PETITIONER (BY SRI S. MRUTHYUNJAYA, ADVOCATE) AND: 1. THE STATE OF KARNATAKA THE URBAN DEVELOPMENT DEPARTMENT VIKASA SOUDHA, DR. B.R. AMBEDKAR VEEDHI BENGALURU-560 001. REPRESENTED BY ITS SECRETARY. 2. THE STATE OF KARNATAKA THE LABOUR DEPARTMENT VIKASA SOUDHA, DR. B.R. AMBEDKAR VEEDHI BENGALURU-560 001. REPRESENTED BY ITS UNDER SECRETARY. 3. THE STATE OF KARNATAKA DEPARTMENT OF PARLIAMENTARY AFFAIRS AND LEGISLATION VIKASA SOUDHA DR. B.R. AMBEDKAR VEEDHI BENGALURU-560 001. REPRESENTED BY ITS SECRETARY. Digitally signed by NAGARAJA B M Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:23239 WP No. 18675 of 2021 4. BRUHAT BENGALURU MAHANAGARA PALIKE N.R. SQUARE, BENGALURU-560 002. REPRESENTED BY ITS COMMISSIONER. 5. THE ASSISTANT DIRECTOR TOWN PLANNING-(WEST) SHESHADRIPURAM SAMPIGE ROAD, NEXT TO BHASHYAM PARK BENGALURU-560 020. …RESPONDENTS (BY SRI H. DEVENDRAPPA, ADVOCATE FOR R-1 TO R-5) * * * THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO DIRECT THE RESPONDENT NOS.4 AND 5 TO REFUND IMMEDIATELY THE AMOUNT COLLECTED IN THE HEADS SUCH AS GROUND RENT, GST ON GROUND RENT, BETTERMENT FEE, SCRUTINY FEE FOR BUILDING GST ON BETTERMENT FEE LAKE REJUVENATION FEE, COMPOUND WALL FEE, WATER SUPPLY SCHEME (BWSSB) RING ROAD(BDA) IMPROVING THE SLUMS (KSCB) LABOUR CHARGES MASS RAPID TRANSPORT SYSTEM (BDA) AND 5 PERCENT LEVY SERVICE CHARGES PLAYABLE TO BBMP 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 :- "i) Grant an order direction or writ in the nature of Mandamus directing the 4th & 5th Respondent to refund immediately the amount collected under the - 3 - HC-KAR NC: 2025:KHC:23239 WP No. 18675 of 2021 heads such as Ground rent, GST on Ground rent, Betterment Fee, Scrutiny fee for building, GST on Betterment fee, Lake Rejuvenation Fee, Compound wall Fee, Water supply scheme (BWSSB), Ring road(BDA), improving the slums, (KSCB), Labour charges, Mass Rapid Transport System(BDA) and 5% Levy service charges payable to BBMP. ii) Issue writ or order direction by way of Mandamus directing the Respondents 4 and 5 to refund the amount of Rs. 9,58,190 collected towards Mass Rapid Transport System, Labour cess amount of Rs. 98,000/-(Ninety Eight Thousand only)etc., and iii) Pass any such other order/s as this Hon'ble Court may deem fit in the facts and circumstances of the case in the interest of justice and equity. 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 - 4 - HC-KAR NC: 2025:KHC:23239 WP No. 18675 of 2021 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 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 - 5 - HC-KAR NC: 2025:KHC:23239 WP No. 18675 of 2021 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. (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. - 6 - HC-KAR NC: 2025:KHC:23239 WP No. 18675 of 2021 (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 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 - 7 - HC-KAR NC: 2025:KHC:23239 WP No. 18675 of 2021 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 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 - 8 - HC-KAR NC: 2025:KHC:23239 WP No. 18675 of 2021 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; ORDER (i) The writ petition is allowed. (ii) The impugned demand notice dated 16.07.2021 issued by respondent No.5 as per Annexure-G 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 - 9 - HC-KAR NC: 2025:KHC:23239 WP No. 18675 of 2021 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 outcome of any appeal that may be filed by the BBMP against the judgment. (vii) Insofar as payments made, the Petitioner shall make a representation to respondent- BBMP seeking refund. Respondent- BBMP shall consider the same and pass appropriate orders in accordance to law, within a period of 8 weeks from the receipt of representation. 5. Pending applications, if any, are also disposed off. SD/- (SACHIN SHANKAR MAGADUM) JUDGE NG List No.: 2 Sl No.: 20