- 1 - HC-KAR NC: 2025:KHC:22588 WP No. 6495 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.6495 OF 2021 (LB-BMP) BETWEEN: VASWANI ESTATES DEVELOPERS PRIVATE LIMITED BEING A COMPANY INCORPORATED UNDER THE COMPANIES ACT, 1956 HAVING ITS REGISTERED OFFICE AT NO.30, VICTORIA ROAD BENGALURU-560 047 REPRESENTED BY ITS DIRECTOR MR. ARUN ADVANI. …PETITIONER (BY SMT. MANASA B. RAO, ADVOCATE) AND: 1. STATE OF KARNATAKA REPRESENTED BY PRINCIPAL SECRETARY URBAN DEVELOPMENT DEPARTMENT 4TH FLOOR, VIKAS SOUDHA AMBEDKAR VEEDI BENGALURU-560 001. 2. BRUHAT BENGALURU MAHANAGARA PALIKE REPRESENTED BY ITS COMMISSIONER N.R. SQUARE BENGALURU-560 002. 3. JOINT DIRECTOR (TOWN PLANNING-NORTH) BRUHAT BENGALURU MAHANAGARA PALIKE N.R. SQUARE BENGALURU-560 002. …RESPONDENTS (BY SRI H.K. KENCHE GOWDA, AGA FOR R-1; SRI B.L. SANJEEV, ADVOCATE FOR R-2 AND R-3) Digitally signed by CHAITHRA P Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:22588 WP No. 6495 of 2021 THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE DEMAND NOTICE DATED 15-3-2021 VIDE ANNEXURE-J ISSUED BY RESPONDENT NO.3 IN SO FAR AS IT SEEKS TO RECOVER GROUND RENT OF RS.1,20,35,210, SCRUTINY FEE OF RS.6,49,048, LICENSE FEE OF RS.17,95,542, BETTERMENT FEE OF RS.1,96,048 FOR BUILDING AND RS.4,63,349 FOR SITE AREA; CESS AND SURCHARGE TOWARDS WATER SUPPLY SCHEME OF RS.17,60,728; RING ROAD OF RS.17,60,728 IMPROVING SLUMS AT RS.8,80,364 MASS RAPID TRANSPORT SYSTEM AT RS.44,01,820; SERVICE CHARGE OF RS.4,63,349 FROM THE PETITIONER COMPANY 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 The captioned petition is filed seeking the following reliefs: i) Issue a writ of certiorari or similar writ, order, direction quashing the Demand Notice dated 15.03.2021 at Annexure-J issued by Respondent No.3 insofar as it seeks to recover Ground rent of Rs.1,20,35,210, Scrutiny fee of Rs.6,49,048, License fee of Rs.17,95,542, Betterment Fee of Rs.1,96,048 for building and Rs.4,63,349 for site area; Cess and Surcharge towards Water Supply Scheme of Rs.17,60,728, Ring Road Of Rs.17,60,728; Improving Slums at Rs.8,80,364; Mass Rapid Transport System at Rs.44,01,820; Service Charge of Rs.4,63,349 from the Petitioner Company. - 3 - HC-KAR NC: 2025:KHC:22588 WP No. 6495 of 2021 ii) Issue a writ of certiorari or similar writ, order, direction quashing Circular dated 04.09.2015 bearing number ºÉ¤£ÀAiÉÆÃ/eÉ.r(G)/rJªÀiï3/¦Dgï/320/2015-16 at Annexure-K issued by Respondent No.2 levying revised rates of Ground rent, Licence and Scrutiny fee. iii) Issue a writ of certiorari or order, direction or writ in the nature thereof declaring Bye-law 3.7 of the Bangalore Bruhat Mahanagar Palike Bye-Laws as ultra vires the Karnataka Municipal Corporation Act, 1976 and violative of Article 243x of the Constitution of India. iv) Issue a writ of certiorari or order, direction or writ in the nature thereof declaring Bye-Law 3.8 of the Bangalore Bruhat Mahanagar Palike Bye-Laws as ultra vires the Karnataka Municipal Corporation Act, 1976 and violative of Article 243x of the Constitution of India. V) Issue a writ in the nature of declaration or any other similar writ, order or direction declaring that Section 18-A of Karnataka Town And Country Planning Act, 1961 as unconstitutional. Vi) Issue a writ in the nature of declaration or any other similar writ, order or direction declaring that amendment to rule 37-A of Karnataka Planning Authority Rules is ultra vires and unconstitutional. Vii) Issue a writ in the nature of declaration or any other similar writ, order or direction declaring that Rule 37-C of Karnataka Planning Authority Rules is ultra vires and unconstitutional. Viii) Issue a writ in the nature of declaration or any other similar writ, order or direction declaring that Circular dated 14.08.2020 issued by Respondent No.3 bearing number ¸ÀASÉå:ºÉ.¤PÀ.¥À.PÉÆÃ/¦.Dgï/ 320/2020-21 at Annexure-N is illegal and unconstitutional. Ix) Issue a Writ of Prohibition or any other writ, order or direction of similar nature prohibiting Respondent No.-3 from levying and collecting Ground Rent, Scrutiny Fee, License Fee, Impugned Levies, and Service Charge from the Petitioner. - 4 - HC-KAR NC: 2025:KHC:22588 WP No. 6495 of 2021 X) Issue Writ of mandamus or any other writ of similar nature or order or direction to Respondent No.3 to refund payment of Rs.6,49,141 to Petitioner which was paid by the Petitioner as Scrutiny Fee vide Receipt vide Annexure- H. xi) Grant any other relief that this Hon'ble Court deems fit in the facts and circumstances of the present case, in the interest of justice. 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 Government Circulars dated 04.09.2015, 27.01.2017, and 30.03.2017. and 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 - 5 - HC-KAR NC: 2025:KHC:22588 WP No. 6495 of 2021 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 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. - 6 - HC-KAR NC: 2025:KHC:22588 WP No. 6495 of 2021 (ii) The impugned demand notice dated 15.03.2021 issued by respondent No.3 as per Annexure-J is hereby set-aside. (iii) Respondent - BBMP is hereby directed to issue fresh/modified plan as the case may be. (iv) Respondent - BBMP is 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 of the 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 subject to the outcome of any appeal that may be filed by the BBMP against the said judgment. - 7 - HC-KAR NC: 2025:KHC:22588 WP No. 6495 of 2021 (vii) Insofar as payment made, the petitioner shall make a representation to the Respondent- BBMP for the refund. The Respondent-BBMP shall consider the same and pass appropriate orders in accordance with law within 8 weeks of receipt of such representation. Pending applications, if any, are also disposed off. Sd/- (SACHIN SHANKAR MAGADUM) JUDGE HDK List No.: 2 Sl No.: 6