- 1 - HC-KAR NC: 2025:KHC:21742 WP No. 11804 of 2021 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. 11804 OF 2021 (LB-BMP) BETWEEN: M/S. SANDHYA RHINE RIVER PROJECTS PVT. LTD., (FORMERLY KNOWN AS AKME RHINE RIVER PROJECT PVT. LTD.,) A COMPANY INCORPORATED UNDER THE COMPANIES ACT 1956, HAVING ITS REGISTERED OFFICE AT SURVEY NO.S 201 AND 202, BEHIND PRESTIGE GLENWOOD, MANDUR VILLAGE, BIDRAHALLI HOBALI BENGALURU - 560 049, REPRESENTED BY ITS AUTHORIZED SIGNATORY MR. RAM KUMAR. …PETITIONER (BY SRI. SOMASHEKHARA A.N, ADVOCATE) AND: 1. STATE OF KARNATAKA REPRESENTED BY ITS SECRETARY DURBAN DEVELOPMENT DEPARTMENT, 4TH FLOOR, VIKAS SOUDHA, DR. AMBEDKAR VEEDHI, BANGALORE - 560 001. 2. THE BRUHAT BANGALORE MAHANAGARA PALIKE N.R. SQUARE, BANGALORE - 560 002, Digitally signed by AL BHAGYA Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:21742 WP No. 11804 of 2021 REPRESENTED BY ITS COMMISSIONER. 3. THE JOINT DIRECTOR OF TOWN PLANNING(NORTH), BRUHAT BANGALORE MAHANAGARA PALIKE, N.R. SQUARE, BANGALORE - 560 002. …RESPONDENTS (BY SMT. SPOORTHY V, HCGP FOR R1; SMT. SINCHANA M.R, ADVOCATE FOR R2 AND R3) THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO-DIRECT TO THE R- 3 TO REFUND THE AMOUNT OF RS.16,03,03,000/- (RUPEES SIXTEEN CRORES THREE LAKHS THREE THOUSAND ONLY) PAID BY THE PETITIONER HEREIN VIDE PAYMENT RECEIPT DTD 21.09.2020 VIDE ANNX-F AND AN AMOUNT OF RS.3,38,76,000/- (RUPEES THREE CRORES THIRTY EIGHT LAKHS SEVENTY SIX THOUSAND ONLY) PAID BY THE PETITIONER TOWARDS LABOUR CESS VIDE ACKNOWLEDGEMENT DATED 10.09.2020 VIDE ANNX-G IN RESPONSE TO THE DEMAND NOTICE DATED 07.09.2020 VIDE ANNX-E TOWARDS SCRUTINY FEES, LICENSE FEES, GROUND RENT, GST ON GROUND RENT, BETTERMENT FEE, SECURITY DEPOSIT, COMPOUND WALL, ADMINISTRATIVE CHARGES ON LABOUR CESS AND TOWARDS LABOUR CESS AND ETC., THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: - 3 - HC-KAR NC: 2025:KHC:21742 WP No. 11804 of 2021 CORAM: HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM ORAL ORDER The caption petition is filed seeking the following reliefs: “WHEREFORE, the Petitioner respectfully prays that this Hon'ble Court may be pleased to: 1) issue a writ of mandamus or similar writ or order or direction to the Respondent No. 3 to refund the amount of Rs. 16,03,03,000/- (Rupees Sixteen Crores Three Lakhs Three Thousand only) paid by the Petitioner herein vide Payment Receipt bearing No.BBMP/11641/CH-20-21 dated 21/09/2020 (Annexure F) and an amount of Rs.3,38,76,000/- (Rupees Three Crores Thirty Eight Lakhs Seventy Six Thousand only) paid by the Petitioner towards Labour Cess vide Acknowledgement bearing No.HO/8675/2020 dated 10/09/2020 (Annexure-G) in response to the Demand Notice bearing No.BBMP/Addl.Dir/JDNORTH/0096/19-20 dated 07/09/2020 (Annexure E) towards Scrutiny Fees, License Fees, Ground Rent, GST on Ground Rent, Betterment Fee, Security Deposit, Compound Wall, Administrative Charges on Labour Cess and towards Labour Cess; ii) issue a writ of mandamus or any other appropriate writ or order or direction declaring that Bye-law No.3.9 in the Bangalore Mahanagara Palike Building Bye-laws, unconstitutional, arbitrary, illegal and 2003 as ultravires; iii) issue a writ of certiorari or similar writ or order or direction to quash provisions of Section 18-A of Karnataka Town and Country Planning Act, 1961 brought into effect by Karnataka Act No.23 of 2004 by the 1st Respondent (Annexure - K) in so far as 18-A(i) and (iv) of Karnataka Act No.23 of 2004 is concerned; iv) grant an order, direction or writ in the nature of Certiorari quashing the Notification issued by the 1st Respondent bearing No.UDD 3 TTP 2015 dated - 4 - HC-KAR NC: 2025:KHC:21742 WP No. 11804 of 2021 25.02.2020 (Annexure-L) in so far as the amended Rule 37-A and Rule 37-C are concerned; v) issue any other appropriate writ or order or direction as deemed fit in the circumstances of the case, in the interest 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 Karnataka Act No.01 of 2022 and Karnataka Act No.37 of - 5 - HC-KAR NC: 2025:KHC:21742 WP No. 11804 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: - 6 - HC-KAR NC: 2025:KHC:21742 WP No. 11804 of 2021 ORDER i. The writ petition is allowed. ii. The impugned demand notice dated 07.09.2020 issued by respondent No.3 as per Annexure-E 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. - 7 - HC-KAR NC: 2025:KHC:21742 WP No. 11804 of 2021 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. vii. Insofar as payment made, the petitioner shall make a representation to the Respondent-BBMP for refund. The Respondent-BBMP shall consider the same and pass appropriate orders in accordance with law within a period of 8 weeks of receipt of such representation. Pending applications, if any, are also disposed off. Sd/- (SACHIN SHANKAR MAGADUM) JUDGE KAV List No.: 2 Sl No.: 3 CT: BHK