- 1 - HC-KAR NC: 2025:KHC:27826 WP No. 15030 of 2022 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 22ND DAY OF JULY, 2025 BEFORE THE HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM WRIT PETITION NO. 15030 OF 2022 (LB-TAX) BETWEEN: 1. CHERUBS TRUST SY NO. 50/2 B M HARVEST SOMPURA GATE, SARJAPUR ROAD ANEKAL TALUK, BANGALORE - 562 125. REPRESENTED BY ITS MANAGER AND AUTHORIZED SIGNATORY MR. K B SURESH, S/O K BHASKAR NAIDU AGED 41 YEARS, REGISTERED UNDER THE INDIAN TRUST ACT, 1882. 2. HARVEST CHERUBS MONTESSORI NO.173, 9TH MAIN, 7TH SECTOR, HSR LAYOUT, BANGALORE - 560 102, REPRESENTED BY ITS MANAGER AND AUTHORIZED SIGNATORY MR. K.B. SURESH S/O K. BHASKAR NAIDU, AGED 41 YEARS. REGISTERED UNDER THE INDIAN TRUST ACT, 1882. …PETITIONERS (BY SRI. GOUTHAM A.R, ADVOCATE) AND: 1. THE STATE OF KARNATAKA REP. BY ITS PRINCIPAL SECRETARY Digitally signed by KAVYA R Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:27826 WP No. 15030 of 2022 DEPARTMENT OF URBAN DEVELOPMENT M.S. BUILDING, DR. AMBEDKAR ROAD, BANGALORE - 560 001, BY ITS COMMISSIONER. 2. BRUHAT BENGALURU MAHANAGARA PALIKE, N.R. SQUARE, BENGALURU, KARNATAKA - 560 002, BY ITS COMMISSIONER. 3. THE ASSISTANT REVENUE OFFICER, BBMP, BOMMANAHALLI, BENGALURU, KARNATAKA - 560 068. …RESPONDENTS (BY SMT. SPOORTHY V, HCGP FOR R1; SRI. T.M. VENKATA REDDY, ADVOCATE FOR R1 AND R2) THIS W.P. IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO DECLARE THAT THE PRIVATE EDUCATIONAL INSTITUTIONS ESTABLISHED AND ADMINISTRATED WITHIN BRUHAT BANGALORE MAHANAGARA PALIKE AREA ARE NOT LIABLE TO PAY PROPERTY TAX UNDER THE BRUHAT BANGALORE MANAHANGARA PALIKE ACT 2020 AND ETC., THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM - 3 - HC-KAR NC: 2025:KHC:27826 WP No. 15030 of 2022 ORAL ORDER In the captioned writ petition, the petitioners who are running an educational institution and a charitable trust seek a declaration that private educational institutions established and administered within the jurisdiction of the Bruhat Bengaluru Mahanagara Palike (BBMP) are not liable to pay property tax under the provisions of the Bruhat Bengaluru Mahanagara Palike Act, 2020 (hereinafter referred to as “the Act”). The petitioners have also sought a declaration that Sections 144 and 152 of the Act, insofar as they impose liability to pay property tax on such private educational institutions, are violative of Article 14 of the Constitution of India and therefore unconstitutional. Consequently, the petitioners challenge the validity of the circular dated 29.03.2021 issued by respondent No.2 (Annexure-D) and the demand notice dated 22.06.2022 issued by BBMP (Annexure-E). - 4 - HC-KAR NC: 2025:KHC:27826 WP No. 15030 of 2022 2. Heard learned counsel for the petitioners and learned counsel appearing for the BBMP. Perused the material on record. 3. The learned counsel for the petitioners has placed reliance on the judgment rendered by a Co-ordinate Bench of this Court in a matter involving identical facts, wherein the circular dated 29.03.2021 was directly under challenge. Upon examination of the said judgment, it is evident that the Co-ordinate Bench, while interpreting the effect of the amended Section 152(1)(i)(b) of the Act, came to the conclusion that the impugned circular was liable to be quashed on the ground that it was contrary to the said statutory amendment. Accordingly, the Co- ordinate Bench not only set aside the circular but also quashed the consequential demand notice issued by the BBMP for recovery of property tax from private educational institutions. - 5 - HC-KAR NC: 2025:KHC:27826 WP No. 15030 of 2022 4. This Court is of the considered view that paragraphs 2 to 5 of the judgment in W.P. No.12954/2021 are directly relevant to the issues raised in the present writ petition. For ease of reference, the said paragraphs are extracted herein below: 2. During the pendency of the above matter, the State Government has amended Section 152(1)(i)(b) of the BBMP Act on 10.03.2023 substituting Section 152(1)(i)(b) of the BBMP Act with the following: "the education institutions established for the purpose of education, recognized by the government or local authority". 3. In view of the said amendment, the discrimination alleged by the petitioners against private education institutions vis-a-vis government education institutions does not survive inasmuch as all education institutions which have been recognized by the government or local authority would be entitled for exemption. Thus, a declaration which has been sought for in the above matter in respect of 152(1)(i)(b) of the BBMP Act has been violative of Article 14 of the Constitution of India does not survive for consideration. 4. In view of the amendment, the circular which has been issued on 29.03.2021 notifying that private institutions do not have the benefit of exemption would be required to be quashed on account of Section - 6 - HC-KAR NC: 2025:KHC:27826 WP No. 15030 of 2022 152(1)(i)(b) of BBMP Act has been amended by clarifying that any institution which is recognized by the government or local authority would be entitled for exemption. 5. The consequential prayer seeking for quashing the demand notices which have been issued by the BBMP to the petitioners in furtherance of the circular dated 29.03.2021 would also have to be quashed in view of the circular having been quashed. 5. On a plain reading of paragraph No.5 of the extracted portion from the judgment in W.P.No.12954/2021, it is evident that the circular dated 29.03.2021 has been quashed by the Co-ordinate Bench, taking into consideration the amendment brought to Section 152(1)(i)(b) of the Bruhat Bengaluru Mahanagara Palike Act, 2020. The Co-ordinate Bench, while interpreting the amended provision, concluded that private educational institutions fall within the category of institutions exempted from payment of property tax and, accordingly, invalidated the circular and the consequent demand notices issued there under. - 7 - HC-KAR NC: 2025:KHC:27826 WP No. 15030 of 2022 6. In view of the authoritative pronouncement of the Co-ordinate Bench and taking judicial notice of the fact that the State Government has, through a legislative amendment in the year 2023, further clarified and reaffirmed the exemption granted to private educational institutions by incorporating appropriate changes to Section 152 of the Act, this Court is of the considered opinion that prayers (1) and (2) sought in the present writ petition do not survive for adjudication. The legislative amendment now explicitly brings private educational institutions within the purview of the exemption clause, thereby exempting them from the liability to pay property tax under the Act. 7. It is also relevant to note that the circular dated 29.03.2021 impugned in the present proceedings has already been quashed by the Co-ordinate Bench in W.P. No.12954/2021, and therefore, this Court need not undertake a separate declaration regarding its validity or - 8 - HC-KAR NC: 2025:KHC:27826 WP No. 15030 of 2022 arbitrariness. The legal position in this regard stands settled. 8. What now remains for consideration is the validity of the demand notice dated 22.06.2022 issued to the petitioners, which is admittedly based on the quashed circular dated 29.03.2021. In light of the findings recorded by the Co-ordinate Bench, and having regard to the fact that the petitioners are similarly placed being a private educational institution and a charitable trust, this Court is of the view that the impugned demand notice is also unsustainable in law and is liable to be quashed on the ground of parity. 9. For the foregoing reasons this Court passes the following: ORDER i. The writ petition is allowed; - 9 - HC-KAR NC: 2025:KHC:27826 WP No. 15030 of 2022 ii. The impugned demand notice dated 22.06.2023, issued by respondent No.3, as per Annexure-E, is hereby quashed and set aside. Sd/- (SACHIN SHANKAR MAGADUM) JUDGE HDK List No.: 1 Sl No.: 6 CT: BHK