- 1 - HC-KAR NC: 2025:KHC:22586 WP No. 6080 of 2021 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 26TH DAY OF JUNE, 2025 BEFORE THE HON'BLE MR JUSTICE SACHIN SHANKAR MAGADUM WRIT PETITION NO.6080 OF 2021 (LB-BMP) BETWEEN: SRI S.M. KRISHNA S/O. LATE SRI S.C. MALLAIAH AGED ABOUT 86 YEARS RESIDING AT NO.3, 5TH CROSS RAJAMAHAL VILAS SADASHIVANAGAR BENGALURU. …PETITIONER (BY SRI RANGANATH N.N., ADVOCATE) AND: 1. STATE OF KARNATAKA REPRESENTED BY ITS SECRETARY URBAN DEVELOPMENT DEPARTMENT 4TH FLOOR, VIKAS SOUDHA DR. AMBEDKAR VEEDHI BENGALURU-560 001. 2. STATE OF KARNATAKA REPRESENTED BY ITS SECRETARY DEPARTMENT OF LABOUR VIKAS SOUDHA BENGALURU-01. 3. BRUHAT BENGALURU MAHANAGARA PALIKE REPRESENTED BY ITS COMMISSIONER N.R. SQUARE BENGALURU-560 002. 4. THE ASSISTANT DIRECTOR TOWN PLANNING-WEST BRUHAT BENGALURU MAHANAGARA PALIKE NEXT TO BHASHYAM PARK SAMPIGE ROAD Digitally signed by CHAITHRA P Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:22586 WP No. 6080 of 2021 SESHADRIPURAM BENGALURU-560 020. …RESPONDENTS (BY SRI H.K. KENCHEGOWDA, AGA FOR R-1 AND R-2; SRI B.L. SANJEEV, ADVOCATE FOR R-3 AND R-4) * * * THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE DEMAND NOTICE DATED NIL, SIGNED ON 29-9-2020 VIDE ANNEXURE-C ISSUED BY THE RESPONDENT NO.4 IN SO FAR AS THE DEMAND OF RS.1,35,594/- TOWARDS LICENSE FEE, RS.80,001 TOWARDS GROUND RENT AND GST 18 PERCENT RS.7,060 TOWARDS BETTERMENT FEE ON BUILDING RS.9,97,645 TOWARDS BETTERMENT FEE ON SITE AREA, RS.23,375 TOWARDS LAKE REJUVENATION FEE, RS.21,01,797 TOWARDS ADMINISTRATIVE CHARGES ON LABOUR CESS AND RS.64,000 TOWARDS LABOUR CESS. 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 relief: (a) Issue a Writ of Certiorari or similar writ or order or direction to quash the Demand Notice No.06/99-20 - 3 - HC-KAR NC: 2025:KHC:22586 WP No. 6080 of 2021 dated nil, signed on 29.09.2020, at ANNEXURE-C issued by the respondent No.4 in so far as the demand of Rs.1,35,594/- towards licence fee, Rs.80,001 towards Ground Rent and GST 18%, Rs.7,060 towards Betterment fee on building, Rs.9,97,645 towards Betterment fee on Site area, Rs.23,375 towards Lake rejuvenation fee, Rs.21,01,797 towards Administrative charges on labour cess and Rs.64,000 towards Labour cess. (b) Issue Writ of Certiorari quashing the Government Order issued by the 2nd Respondent bearing G.O.No.LD 300 LET 2006, dated 18.01.2007 and the Corrigendum bearing No.LD.300 LET 2006 dated 28.02.2007 directing upfront collection of labour welfare cess, as contained in ANNEXURE-D. (c) Issue a Writ of Mandamus or any other appropriate writ or order or direction declaring that Bye- law No.3.8 in the Bengaluru Mahanagara Palike Building Bye-Laws, 2003, framed under the Karnataka Municipal Corporations Act as unconstitutional, arbitrary, illegal and ultra-vires. (d) Issue Writ of Mandamus or similar writ or order or direction directing the respondent Nos. 3 and 4 to issue licence and approved building plan pursuant to the communication at Annexure-C issued by the respondent No.4 without insisting for the payment of demands as afore stated. - 4 - HC-KAR NC: 2025:KHC:22586 WP No. 6080 of 2021 (e) Issue any other appropriate Writ or order or direction deemed fit in the 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 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. - 5 - HC-KAR NC: 2025:KHC:22586 WP No. 6080 of 2021 (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. (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 - 6 - HC-KAR NC: 2025:KHC:22586 WP No. 6080 of 2021 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 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, - 7 - HC-KAR NC: 2025:KHC:22586 WP No. 6080 of 2021 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 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 - 8 - HC-KAR NC: 2025:KHC:22586 WP No. 6080 of 2021 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; ORDER (i) The writ petition is allowed. (ii) The impugned demand notice dated NIL issued by respondent No.4 as per Annexure-C is hereby set-aside. (iii) Respondent- BBMP is hereby directed to issue fresh/modified plan as the case may be. - 9 - HC-KAR NC: 2025:KHC:22586 WP No. 6080 of 2021 (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 outcome of any appeal that may be filed by the BBMP against the judgment. Pending applications, if any, are also disposed off. Sd/- (SACHIN SHANKAR MAGADUM) JUDGE HDK List No.: 2 Sl No.: 4