Citation : 2025 Latest Caselaw 6860 Kant
Judgement Date : 30 June, 2025
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WP No. 18646 of 2025
HC-KAR
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 30TH DAY OF JUNE, 2025
BEFORE
THE HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM
WRIT PETITION NO. 18646 OF 2025 (LB-BMP)
BETWEEN:
1. JAVARE GOWDA
S/O LATE CHANNEGOWDA
AGED ABOUT 78 YEARS
2. J. RAGHAVENDRA
S/O JAVARE GOWDA
AGED ABOUT 44 YEARS
BOTH THE PETITIONERS ARE
RESIDING AT NO.40, 17TH CROSS
22ND MAIN, JP NAGAR, 5TH PHASE
BANGALORE - 560078.
...PETITIONERS
(BY SRI. ROHAN .S, ADVOCATE)
Digitally signed by AND:
NAGARAJA B M
Location: HIGH
COURT OF 1. THE STATE OF KARNATAKA
KARNATAKA
THE URBAN DEVELOPMENT DEPARTMENT
VIKASA SOUDHA, DR. BR AMBEDKAR VEEDHI
BANGALORE-560001
REPRESENTED BY ITS SECRETARY
2. THE STATE OF KARNATAKA
DEPARTMENT OF PARLIAMENTARY
AFFAIRS AND LEGISLATION
VIKASA SOUDHA, DR. BR AMBEDKAR VEEDHI
BANGALORE-560001
REPRESENTED BY ITS SECRETARY
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WP No. 18646 of 2025
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3. BRUHAT BENGALURU MAHANAGARA PALIKE
NR. SQUARE, BANGALORE- 560002
REPRESENTED BY ITS COMMISSIONER
4. THE ASSISTANT DIRECTOR OF
TOWN PLANNING
MAHADEVPURA ZONE, WARD NO.82
BRUHAT BENGALURU MAHANAGARA PALIKE
BENGALURU-560071.
...RESPONDENTS
(BY SRI. K.H. KENCHE GOWDA, AGA FOR R1 AND R2;
SRI. PAWAN KUMAR, ADVOCATE FOR R3 AND R4)
THIS WP IS FILED UNDER ARTICLE 226 OF THE
CONSTITUTION OF INDIA, PRAYING TO QUASH THE DEMAND
DATED 08.06.2025, BEARING LP NO.
BBMP/AD.COM./BMH/0073/25-26, ISSUED BY THE
RESPONDENT NO.4 (ANNEXURE-C) FOR DEMANDING IN SO
FAR IT IS CONCERNED TO GROUND RENT, GST ON GROUND
RENT, LICENSE FEE, SCRUTINY FEE, BETTERMENT CHARGES
FOR BUILDING, BETTERMENT CHARGES OF SITE, LAKE
REJUVENATION FEE, CESS FOR WATER SUPPLY SCHEME,
SURCHARGE FOR FORMATION OUTER RING ROAD, CESS FOR
IMPROVEMENT OF SLUM, SURCHARGE FOR MASS RAPID
TRANSPORT SYSTEM, LABOUR CESS AND ETC., AS ILLEGAL,
WITHOUT JURISDICTION AND ARBITRARY 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
ORAL ORDER
The captioned petition is filed seeking the following
reliefs:
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"i. QUASH THE DEMAND DATED 08.06.2025, BEARING LP NO. BBMP/AD.COM./BMH/0073/25-26, ISSUED BY THE RESPONDENT NO.4 (ANNEXURE-C) FOR DEMANDING IN SO FAR IT IS CONCERNED TO GROUND RENT, GST ON GROUND RENT, LICENSE FEE, SCRUTINY FEE, BETTERMENT CHARGES FOR BUILDING, BETTERMENT CHARGES OF SITE, LAKE REJUVENATION FEE, CESS FOR WATER SUPPLY SCHEME, SURCHARGE FOR FORMATION OUTER RING ROAD, CESS FOR IMPROVEMENT OF SLUM, SURCHARGE FOR MASS RAPID TRANSPORT SYSTEM, LABOUR CESS AND ETC., AS ILLEGAL, WITHOUT JURISDICTION AND ARBITRARY.
ii. DIRECTION BY WAY OF MANDAMUS DIRECTING THE RESPONDENT NO. 3 AND 4 BBMP TO ISSUE THE SANCTION PLAN FOR CONSTRUCTION OF THE INDUSTRY BUILDING IN THE SCHEDULE PROPERTY WITHOUT INSISTING THE GROUND RENT, GST ON GROUND RENT, LICENSE FEE, SCRUTINY FEE, BETTERMENT CHARGES FOR BUILDING, BETTERMENT CHARGES OF SITE, LAKE REJUVENATION FEE, CESS FOR WATER SUPPLY SCHEME, SURCHARGE FOR FORMATION OUTER RING ROAD, CESS FOR IMPROVEMENT OF SLUM AND SURCHARGE FOR MASS RAPID TRANSPORT SYSTEM, LABOUR CESS"
2. It is brought to the notice of this Court that this
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,
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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 (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.
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(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' 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
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citizens of Bengaluru. This would also augment the present situation."
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
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layout plan, no further fee shall be levied for subsequent
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
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writ petition is liable to be allowed strictly aligning to the
operative portion of the said writ petition.
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 08.06.2025 issued by respondent No.4 as per Annexure-C is hereby set-aside.
(iii) Respondent- BBMP hereby directed to issue fresh/modified plan as the case may be.
(iv) Respondent- BBMP is hereby 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 plan shall not be withheld merely on the ground that the
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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 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
ALB
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