- 1 - HC-KAR NC: 2025:KHC:24127 WP No. 5060 of 2025 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.5060 OF 2025 (LB-BMP) BETWEEN: SRI BASAVARAJU S.S. S/O. M. SHIVANNA AGED ABOUT 52 YEARS RESIDING AT NO.SADOLALU MADDUR TALUK MANDYA DISTRICT-571 428. …PETITIONER (BY SRI NAGARAJU, ADVOCATE) AND: 1. STATE OF KARNATAKA URBAN DEVELOPMENT DEPARTMENT VIKASA SOUDHA BENGALURU-560 001. REPRESENTED BY ITS SECRETARY. 2. STATE OF KARNATAKA LABOUR DEPARTMENT VIKASA SOUDHA AMBEDKAR VEEDHI BENGALURU-560 001 REPRESENTED BY ITS SECRETARY. 3. STATE OF KARNATAKA DEPARTMENT OF PARLIMENTARY AFFIRS AND LEGISLATION Digitally signed by NAGARAJA B M Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:24127 WP No. 5060 of 2025 VIKASA SOUDHA AMBEDKAR VEEDHI BENGALURU-560 001 REPRESENTED BY ITS SECRETARY. 4. THE BRUHAT BENGALURU MAHANAGARA PALIKE N.R. SQUARE BENGALURU - 560 002. REPRESENTED BY ITS COMMISSIONER. 5. THE ASSISTANT DIRECTOR TOWN PLANNING (BOMMANAHALLI) BRUHAT BENGALURU MAHANAGARA PALIKE BEGURU MAIN ROAD BENGALURU-560 068. …RESPONDENTS (BY SRI BOPANNA B., AGA FOR R-1 TO R-3; SMT. SUMANA BALIGA M., ADVOCATE FOR R-4 AND R-5) * * * THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO GRANT AN ORDER DECLARING THAT THE ENTIRE KARNATAKA MUNICIPAL CORPORATIONS AND CERTAIN OTHER LAW (AMENDMENT) ACT, 2021 (KARNATAKA ACT NO.1 OF 2022) NOTIFIED ON 13-1-2022 ANNEXURE-F AS BEING ULTRA VIRES THE CONSTITUTION IN AS CONTAINED IN SO FAR PETITIONER 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 - 3 - HC-KAR NC: 2025:KHC:24127 WP No. 5060 of 2025 ORAL ORDER Caption petition is filed seeking the following reliefs:-[ "a) Grant an order declaring that the entire Karnataka Municipal Corporations and Certain Other Law (Amendment) Act, 2021 (Karnataka Act No. 01 of 2022) notified on 13.01.2022 as contained in ANNEXURE-F as being ultra vires the Constitution in so far Petitioner; b) Grant an order declaring that Section 18-A of the Karnataka Town & Country Planning Act, 1961 brought into effect by Karnataka Act No.23 of 2004 (Karnataka Town & Country Planning (Amendment) Act, 1998) as contained in ANNEXURE-D as being ultra vires the Constitution in so far Petitioner; c) Grant an order, direction or writ in the nature of Certiorari quashing the Notification issued by the 1st Respondent bearing No.UDD 23 TTP 2020 (E) dated 21.06.2021 as contained in ANNEXURE-E in so far as the amended Rule 37-A and 37-C is concerned in so far Petitioner; d) Grant an order, direction or writ in the nature of certiorari quashing the Office Order - 4 - HC-KAR NC: 2025:KHC:24127 WP No. 5060 of 2025 No.HaNiNaYo/PR/461/2021-22 dated 09.03.2022 issued by Respondent No.2 ANNEXURE-G in so far Petitioner; as contained in petitioner; e) Grant an order declaring that the entire Bruhat Bengaluru Mahanagara Palike and Certain Other Law (Amendment) Act, 2023 (Karnataka Act No. 37 of 2024) notified by Respondent No.1 on 16/08/2024 as contained in ANNEXURE-J as being ultra vires the Constitution in so far Petitioner; f) Grant an order, direction or writ in the nature of certiorari quashing the demand notice bearing BBMP/EODB/BMH/46684/24-25 dated 05/02/2025 as contained in ANNEXURE-H insofar as the levy of ground rent, license fee, scrutiny fees, betterment fee, security deposit, lake rejuvenation fee, water supply scheme cess, ring road formation cess, slum improvement cess, MRTS Surcharge and 5% service charge, labour welfare charge/cess is concerned; g) Grant an order, direction or writ in the nature of mandamus directing the Respondent No.5 to issue fresh sanction plan to the Petitioner without insistence of the fess specified at "I. Fee Payable To BBMP" (i.e., scrutiny fee, license fees, security deposit, ground rent, lake rejuvenation fee, betterment levy on site & building, cess for water - 5 - HC-KAR NC: 2025:KHC:24127 WP No. 5060 of 2025 supply scheme, cess for ring road, cess for improving slum board, cess for mass rapid transport, 5% BBMP Service charges, labour charges/cess) as contained in demand notice bearing BBMP/EoDB/BMH/46684/24- 25 dated 05/02/2025 contained in Annexure- H, in so far Petitioner; h) Grant an order, direction or declare that the various fees levied on the basis of the guidance value of the property are all bad in law and unconstitutional; and i) Pass such other relief/s as this Hon'ble Court may deem fit to grant, including cost of the Petitioner, 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.23086/2022 and connected matters. The Co-ordinate Bench, while deciding the issue, has set- aside the Karnataka Municipal Corporations and Certain Other Law (Amendment) Act, 2021 (Karnataka - 6 - HC-KAR NC: 2025:KHC:24127 WP No. 5060 of 2025 Act No.01 of 2022) and the Karnataka Municipal Corporations and Certain Other Law (Amendment) Act, 2023, (Karnataka Act No.37 of 2024). Therefore, this Court deems it fit to cull out the operative portion of the order, which reads as under; "ORDER (i) The writ petitions are partly allowed. (ii) The Karnataka Municipal Corporations and Certain Other Law (Amendment) Act, 2021 (Karnataka Act No.01 of 2022), is hereby quashed and set aside. (iii) The Karnataka Municipal Corporations and Certain Other Law (Amendment) Act, 2023, (Karnataka Act No.37 of 2024), is hereby quashed and set aside. (iv) It is hereby declared that the provisions contained in Section 18-A of the Karnataka Town and Country Planning Act, 1961, read with Rules 37-A and 37-C of the Karnataka Planning Authority Rules, 1965, are applicable only in respect of ‘Development Plan’ containing the proposal for construction on plots measuring more than 20,000 square meters in extent and not in respect of plots measuring less than 20,000 square meters. - 7 - HC-KAR NC: 2025:KHC:24127 WP No. 5060 of 2025 (v) It is hereby declared that if fee has been earlier collected for change of land use or while approving a layout plan, fee shall not be collected for subsequent ‘Development Plan’ in terms of the ‘Note’ found below TABLE I of Rule 37-A of the Karnataka Planning Authority Rules, 1965. (vi) It is hereby declared that the linking of the fee leviable under Rule 37-A of the Karnataka Planning Authority Rules, 1965, to the ‘market value’ or ‘guidance value’ as determined under Section 45-B of the Karnataka Stamp Act, 1957, is illegal. However, liberty is reserved to the respondent-State Government and the BBMP to re-fix a standard after collecting empherical data. (vii) Consequently, all the impugned Circulars which seek to give effect to the Rules 37-A and 37-C of the Karnataka Planning Authority Rules, 1965, are hereby quashed and set aside. (viii) It is hereby declared that Clause 3.8 of the Bengaluru Mahanagara Palike Building Bye- laws, 2003, providing for ‘Ground Rent’, is illegal and are accordingly quashed and set aside. - 8 - HC-KAR NC: 2025:KHC:24127 WP No. 5060 of 2025 (ix) Consequently, all the impugned Demand Notices raised by the respondent-BBMP, in respect of the writ petitioners herein are also quashed and set aside. It would be advisable that the BBMP may come out with a scheme for ‘One Time Settlement’ and settle the levy and collect the fee generally acceptable to the citizens of Bengaluru. This would also augment the present situation." 3. In the present writ petition, the core issue raised stands substantially covered and decided by the authoritative pronouncement of the coordinate bench, wherein the writ petitions were partly allowed and several consequential reliefs were granted. The Hon’ble Court, in unequivocal terms, quashed and set aside the Karnataka Municipal Corporations and Certain Other Law (Amendment) Acts of 2021 and 2023 (Karnataka Act Nos.01 of 2022 and 37 of 2024 respectively). 4. The Court further declared that the provisions under Section 18-A of the Karnataka Town and Country Planning Act, 1961, read with Rules 37-A and - 9 - HC-KAR NC: 2025:KHC:24127 WP No. 5060 of 2025 37-C of the Karnataka Planning Authority Rules, 1965, are applicable only to development proposals concerning plots exceeding 20,000 square meters, and not to smaller plots. Importantly, it was also held that if a fee has been previously collected for change of land use or approval of layout plan, no further fee shall be levied for subsequent development plans, in view of the explanatory 'Note' to Table I of Rule 37- A. 5. The Court declared illegal the linkage of such levies to market or guidance value under Section 45-B of the Karnataka Stamp Act, and consequently, quashed all Circulars and demand notices issued to give effect to such unlawful interpretations. Clause 3.8 of the BBMP Building Bye-laws, 2003, imposing 'Ground Rent', was also struck down. 6. In view of these comprehensive declarations and findings, it is submitted that the controversy raised in - 10 - HC-KAR NC: 2025:KHC:24127 WP No. 5060 of 2025 the present writ petition no longer survives for adjudication independently, as it is squarely covered by the binding judgment of the coordinate bench. In the light of the law laid down in the reported judgment substantially covering the issue, which is raised in the captioned writ petition, the writ petition is liable to be allowed strictly aligning to the operative portion of the said writ petition. 7. 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 05.02.2025 issued by respondent -BBMP as per Annexure-H is hereby set-aside. (iii) Respondent- BBMP hereby directed to issue fresh/modified plan as the case may be. - 11 - HC-KAR NC: 2025:KHC:24127 WP No. 5060 of 2025 (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. 8. Pending applications, if any, are also disposed off. Sd/- (SACHIN SHANKAR MAGADUM) JUDGE NG List No.: 2 Sl No.: 35