- 1 - HC-KAR NC: 2025:KHC:26296 WP No. 26070 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 16TH DAY OF JULY, 2025 BEFORE THE HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM WRIT PETITION NO. 26070 OF 2023 (LB-BMP) BETWEEN: 1. M/S SOBHA LIMITED, (FORMERLY KNOWN AS SOBHA DEVELOPERS LIMITED), A COMPANY INCORPORATED UNDER THE COMPANIES ACT 1956, AND HAVING ITS REGISTERED AND CORPORATE OFFICE AT, SARJAPUR - MARTHAHALLI OUTER RING ROAD (ORR), DEVERABESANAHALLI, BELLANDUR POST, BANGALORE – 560103. REPRESENTED BY ITS AUTHORIZED SIGNATORY, MR. PRASAD M. S. ASSISTANT GENERAL MANAGER-LEGAL DEPARTMENT. …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 – 560001. Digitally signed by AL BHAGYA Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:26296 WP No. 26070 of 2023 2. DEPARTMENT OF URBAN DEVELOPMENT, GOVERNMENT OF KARNATAKA, REPRESENTED BY ITS PRINCIPAL SECRETARY, 4TH FLOOR, VIKAS SOUDHA, DR B R AMBEDKAR VEEDHI, BENGALURU – 560001. 3. BRUHATH BANGALORE MAHANAGARA PALIKE, N R SQUARE, HUDSON CIRCLE, BENGALURU – 560002. REPRESENTED BY ITS CHIEF COMMISSIONER 4. THE JOINT DIRECTOR (TOWN PLANNING NORTH) BRUHATH BANGALORE MAHANAGARA PALIKE N R SQUARE, HUDSON CIRCLE, BENGALURU – 560002. …RESPONDENTS (BY SMT.SPOORTHY V., HCGP FOR R1 AND R2; SRI.K.B.MONESH KUMAR, ADVOCATE FOR R3 AND R4) THIS WP 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 11/01/2021 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 ETC. - 3 - HC-KAR NC: 2025:KHC:26296 WP No. 26070 of 2023 THIS PETITION, COMING ON FOR PRELIMINARY HEARING, 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: “Wherefore, the Petitioner most respectfully prays that this Hon'ble Court be pleased to:- 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 11-01-2021 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 demand notice bearing No.BBMP/Addl.Dir/JDNROTH/LP/0009/18-19 dated 15.11.2023 Issued by respondent No.4 under ANNEXURE-B to the writ petition. 3. Direct the 3rd respondent by issue of a writ in the nature of mandamus to consider the representation No. SL/LGL/528/2021 dated 28.09.2021 under Annexure-E and reminder dated 28.10.2021 bearing No. SL/LGL/598/2021 under Annexure-F to the writ petition and refund to the petitioner the sum of Rs.5,66,69,316/- (Rupees Five Crore Sixty Six Lakhs Sixty Nine Thosuand Three Hundred and Sixteen only) paid by the petitioner pursuant to the Order dated 04.08.2021 - 4 - HC-KAR NC: 2025:KHC:26296 WP No. 26070 of 2023 rendered by this Hon'ble Court in Writ Petition No.4601 of 2020 (LB-BMP) and connected matters, in particular Writ Petition No.10164/2016. 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 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 - 5 - HC-KAR NC: 2025:KHC:26296 WP No. 26070 of 2023 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 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: - 6 - HC-KAR NC: 2025:KHC:26296 WP No. 26070 of 2023 ORDER i. The writ petition is allowed. ii. The impugned demand notice dated 15.11.2023 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 hereby 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 merely on the ground that the BBMP is - 7 - HC-KAR NC: 2025:KHC:26296 WP No. 26070 of 2023 contemplating to file an appeal against the reported judgment. vi. If the occupancy certificate is 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 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 KAV List No.: 2 Sl No.: 1