- 1 - HC-KAR NC: 2025:KHC:26075 WP No. 27924 of 2023 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.27924 OF 2023 (LB-BMP) BETWEEN: M/S. SOBHA LIMITED (FORMERLY KNOWN AS SOBHA DEVELOPERS LIMITED) THE COMPANY INCORPORATED UNDER THE COMPANIES ACT, 1956 AND HAVING ITS OFFICE AT SARJAPURA-MARATHAHALLI OUTER RING ROAD (ORR) DEVARABESANAHALLI BELLANDUR POST BENGALURU-560 103 REPRESENTED BY ITS AUTHORIZED SIGNATORY MR. PRASAD M.S. ASSISTANT GENERAL MANAGER …PETITIONER (BY SRI KEMPEGOWDA, ADVOCATE) AND: 1. THE STATE OF KARNATAKA REPRESENTED BY ITS PRINCIPAL SECRETARY DEPARTMENT OF PARLIAMENTARY AFFAIRS AND LEGISLATION VIDHANA SOUDHA DR. B.R. AMBEDKAR VEEDHI BENGALURU-560 001. 2. DEPARTMENT OF URBAN DEVELOPMENT GOVERNMENT OF KARNATAKA REPRESENTED BY ITS PRINCIPAL SECRETARY 4TH FLOOR, VIKASA SOUDHA Digitally signed by SHARADAVANI B Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:26075 WP No. 27924 of 2023 DR. B.R. AMBEKDAR VEEDHI BENGALURU -560 001. 3. BRUHAT BENGALURU MAHANAGARA PALIKE N.R. SQUARE HUDSON CIRCLE BENGALURU-560 001 REPRESENTED BY ITS COMMISSIONER. 4. THE JOINT DIRECTOR (TOWN PLANNING NORTH) BRUHAT BANGALORE MAHANAGARA PALIKE N.R. SQUARE HUDSON CIRCLE BENGALURU-560 002. …RESPONDENTS (BY SMT. SPOORTHY V., H.C.G.P. FOR R-1 AND R-2; SRI K.B. MONESH KUMAR, ADVOCATE FOR R-3 AND R-4) * * * THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO DECLARE THAT THE PROVISIONS OF SECTIONS 299A AND 299C INSERTED INTO THE KARNATAKA MUNICIPAL CORPORATIONS ACT, 1976 (KARNATAKA ACT NO.14 OF 1977) WITH EFFECT FROM 4TH SEPTEMBER 2015 AND ALSO SECTIONS 240A AND 240C INSERTED INTO THE BRUHAT BENGALURU MAHANAGARA PALIKE 2020 (KARNATAKA ACT NO.53 OF 2020) ANNEXURE-A WITH EFFECT FROM 16/11/2021 AS UNCONSTITUTIONAL, MANIFESTLY ARBITRARY, UNREASONABLE, UNENFORCEABLE, AN UNREASONABLE RESTRICTION ON RIGHT TO PROPERTY BEING EXPROPRIATARY, AN INFRINGEMENT OF CONSTITUTIONAL RIGHT TO PROPERTY UNDER ARTICLE 300A AND FAILING THE TEST OF ARTICLE 14 OF THE CONSTITUTION AND QUASH THE DEMAND NOTICE AT ANNEXURE-B, BEARING NO. BBMP/ADDL.DIR/JDNROTH/LP/0455/2014-15 DATED 06/12/2023 ISSUED BY THE R4 FOR ISSUANCE OF OCCUPANCY CERTIFICATE FOR THE BUILDINGS CONSTRUCTED ON THE LARGER PROPERTY. - 3 - HC-KAR NC: 2025:KHC:26075 WP No. 27924 of 2023 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: 1. DECLARE that the provisions of Sections 299A and 299C inserted into the Karnataka Municipal Corporations Act, 1976 (Karnataka Act No.14 of 1977) with effect from 4th September 2015 and also Sections 240A and 240C inserted into the Bruhat Bengaluru Mahanagara Palike 2020 (Karnataka Act No.53 of 2020) ANNEXURE-A with effect from 16-11-2021 as unconstitutional, manifestly arbitrary, unreasonable, unenforceable, an unreasonable restriction on right to property being expropriatary, an infringement of constitutional right to property under Article 300A and failing the test of Article 14 of the Constitution. 2. Quash the demand notice at Annexure-B, bearing No.BBMP/ADDL.DIR/ JDNROTH/LP/0455/2014-15 dated 06- 12-2023 issued by the Respondent No.4 for issuance of Occupancy Certificate for the buildings constructed on the larger property. 3. Direct the 3rd Respondent by issue of a writ in the nature of mandamus directing the 3rd respondent to consider the representation No. SL/LGL/514/2021 Dated 24.09.2021 and representation No. SL/LGL/519/2021 - 4 - HC-KAR NC: 2025:KHC:26075 WP No. 27924 of 2023 dated 28-09-2021 under Annexure-E and F to the writ petition and refund to the petitioner the sum of Rs.21,44,47,000/- (Rupees Twenty one Crore Forty Four Lakhs Forty Seven Thousand only) paid by the petitioner pursuant to the order dated 04.08.2021 rendered by this Hon'ble Court in Writ Petition No.4601 of 2020 (LB-BMP) and connected matters in particular Writ Petition No.25145/2009, 13573/2020 and W.P.388/2020, which is reported in ILR 2021 KAR 3968. 4. Grant such other and further relief/s as this Hon'ble Court deems fit in the facts and 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 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 - 5 - HC-KAR NC: 2025:KHC:26075 WP No. 27924 of 2023 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. 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 - 6 - HC-KAR NC: 2025:KHC:26075 WP No. 27924 of 2023 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 06.12.2023 issued by respondent No.4 as per Annexure-B 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 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 the occupancy certificate shall not be withheld - 7 - HC-KAR NC: 2025:KHC:26075 WP No. 27924 of 2023 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 subject to the outcome of any appeal that may be filed by the BBMP against the said judgment. (vii) Insofar as payment made, the Respondent-BBMP shall consider the representations made by the petitioner for refund at Annexure E and F and pass appropriate orders in accordance with law within a period of 8 weeks of receipt of this order. Pending applications, if any, are also disposed off. Sd/- (SACHIN SHANKAR MAGADUM) JUDGE HDK List No.: 2 Sl No.: 2