Karnataka High Court
M/S Ezzy Central vs The State Of Karnataka on 27 June, 2025
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WP No. 19177 of 2024
HC-KAR
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 27TH DAY OF JUNE, 2025
BEFORE
THE HON'BLE MR JUSTICE SACHIN SHANKAR MAGADUM
WRIT PETITION NO. 19177 OF 2024 (LB-BMP)
BETWEEN:
M/S. EZZY CENTRAL
A REGISTERED PARTNERSHIP FIRM
UNDER PARTNERSHIP ACT,
HAVING ITS OFFICE AT NO.7/5,
GRACE ORBIT, 2ND FLOOR,
CLARKE ROAD, RICHARDS TOWN,
BANGALORE-560 005.
REPRESENTED BY ITS MANAGING PARTNER
SRI. HISHAM SYED TAMIZ
S/O SYED TAMIZUDDIN,
AGED ABOUT 40 YEARS.
...PETITIONER
(BY SRI. SUDHAKAR G.V., ADVOCATE)
Digitally signed AND:
by AL BHAGYA
Location: HIGH 1. THE STATE OF KARNATAKA
COURT OF THE URBAN DEVELOPMENT DEPARTMENT,
KARNATAKA
VIKAS SOUDHA,
DR. B.R. AMBEDKAR VEEDHI,
BANGALORE-560 001.
REPRESENTED BY ITS SECRETARY.
2. THE STATE OF KARNATAKA
DEPARTMENT OF PARLIAMENTARY
AFFAIRS AND LEGISLATION,
VIKASA SOUDHA,
DR. B.R. AMBEDKAR VEEDHI,
BANGALORE-560 001.
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REPRESENTED BY ITS SECRETARY.
3. BRUHAT BANGALORE MAHANAGAR PALIKE
N.R. SQUARE,
BANGALORE-560 002.
REPRESENTED BY ITS COMMISSIONER.
4. THE JOINT DIRECTOR
(TOWN PLANNING-NORTH)
BRUHAT BANGALORE MAHANAGARA PALIKE,
N.R SQUARE,
BANGALORE-560 002.
...RESPONDENTS
(BY SPOORTHI, HCGP FOR R1 & R2;
SRI. K.B. MONESH KUMAR, ADVOCATE FOR R3 & R4)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226
AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO i)
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 (ANNEXURE-H) AS BEING ULTRA
VIRES THE CONSTITUTION IN SO FAR THE PETITIONER IS
CONCERNED AND ETC.
THIS PETITION, COMING ON FOR ORDERS, THIS DAY,
ORDER WAS MADE THEREIN AS UNDER:
CORAM: HON'BLE MR JUSTICE SACHIN SHANKAR MAGADUM
ORAL ORDER
This petition is filed seeking the following reliefs:-
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"i) 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 (Annexure-H) as being ultra vires
the Constitution in so far the Petitioner is
concerned.
ii) To declare that Karnataka Municipal
Corporations and Certain Other Law
(Amendment) Act, 2021 (Karnataka Act No.
01 of 2022) notified on 13/01/2022
(ANNEXURE-H) is in violation/contrary to the
decision of this Hon'ble Court in W.P
No.4601/2020 (LB-BMP) ANNEXURE-F.
iii) Grant an order, direction or writ in the nature
of certiorari quashing the Office Order No.
HaNiNaYo/PR/461/2021-22 dated 09/03/2022
issued by Respondent No.3 as contained in
(ANNEXURE-J) in so far the Petitioner is
concerned.
iv) issue a writ or order by way of certiorari
quashing the demand notice dated
04/07/2024 bearing No.BBMP/Addl.Dir/JD
NORTH/LP/0164/2017-18, issued by the
Respondent No.4 (Annexure-D) for demanding
in so far it is concerned to Ground rent, GST
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on Ground rent, License fee and Scrutiny fee
as illegal, without jurisdiction and arbitrary.
v) issue a writ or order or direction by way of
mandamus directing the Respondent No.3 and
4 BBMP to issue the Occupancy certificate for
the residential multi-storied apartment
constructed on the Schedule Property without
insisting the Ground rent, GST on Ground
rent, License fee and Scrutiny fee; and
vi) pass any such other order(s) as this Hon'ble
Court deems fit 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 Act No.01 of 2022) and the Karnataka
Municipal Corporations and Certain Other Law
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(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.
(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'
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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.
(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."
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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 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
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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 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.
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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
04.07.2024 issued by respondent No.4 as
per Annexure-D is hereby set-aside.
(iii) Respondent Nos.3 and 4 - BBMP are
hereby directed to issue Occupancy Certificate
in accordance with law in compliance of the
construction strictly adhering to the approved
building plan.
(iv) Respondent Nos.3 and 4 - BBMP are
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
contemplating to file an appeal against the
reported judgment.
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(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.
Pending applications, if any, are also disposed off.
Sd/-
(SACHIN SHANKAR MAGADUM)
JUDGE
NBM
