M/S Bhartiya Urban Private Limited vs. The State Of Karnataka
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Cause title — parties, addresses and appearances
ORAL ORDER
In this writ petition, the petitioner has sought for a writ in the nature of certiorari to quash the demand notice bearing No.JDTP/LP/25/2010-11 dated 24.10.2025 directing it to deposit a sum of Rs.23,15,29,588/- (Rupees Twenty Three Crores Fifteen Lakhs Twenty Nine Thousand Five Hundred and Eighty Eight only) which includes Rs.76,65,000/- (Rupees Seventy Six Lakhs Sixty Five Thousand only) towards the compounding fee for deviation in the constructed area, scrutiny fees, ground rent with applicable GST and Rs.22,38,64,588/- (Rupees Twenty Two Crores Thirty Eight Lakhs Sixty Four Thousand Five Hundred and Eighty Eight only) towards the arrears of fees. The petitioner has also sought for a writ in the nature of mandamus to direct Respondent No.4 to issue partial occupancy certificate without insisting of payment of a sum of Rs.23,15,29,588/- (Rupees Twenty Three Crores Fifteen Lakhs Twenty Nine Thousand Five Hundred HC-KAR NC: 2025:KHC:50753 and Eighty Eight only) of which Rs.76,65,000/- (Rupees Seventy Six Lakhs Sixty Five Thousand only) is towards compounding fee and Rs.22,38,64,588/- (Rupees Twenty Two Crores Thirty Eight Lakhs Sixty Four Thousand Five Hundred and Eighty Eight only) is towards the arrears of fees.
2(i). Though the petition is elaborate, the necessary facts for consideration of this writ petition are that the respondent-the erstwhile Bruhath Bengaluru Mahanagara Palike (BBMP) had imposed ground rent, license fee, scrutiny fee, inspection charges etc., and a Co-ordinate Bench of this Court in W.P.No.9949 of 2021 (LB-BMP), had quashed the demand as there was no corresponding law which enabled the Corporation to collect the said charges. Later, the State Government issued a Validation Act validating the collection of the above charges, which again was challenged before this Court and a Co-ordinate Bench of this court in W.P.No.23086 of 2022 (LB-BMP) and connected matters quashed the Validation Act. The same HC-KAR NC: 2025:KHC:50753 is now challenged in Writ Appeal No.1050 of 2025 (LB- BMP), where the Division Bench, in terms of an interim order dated 23.07.2025, had stayed the order passed by the Co-ordinate Bench and clarified that the fee collected by the BBMP for sanction of building plans will be subject to the outcome of the appeal and in the event, it fails in the appeal, the fee collected should be refunded to the concerned parties.
(ii). The petitioner sought for sanction of an occupancy certificate in respect of Block No.11 and therefore made a request. The Respondent-Corporation, issued the impugned demand notice demanding a sum of Rs.23,15,29,588/- (Rupees Twenty Three Crores Fifteen Lakhs Twenty Nine Thousand Five Hundred and Eighty Eight only) towards issuing the occupancy certificate. Petitioner, therefore being aggrieved by the said demand is before the Court.
Sri.Ashok Haranahalli, learned Senior Counsel for the petitioner submitted that the question whether the HC-KAR NC: 2025:KHC:50753 respondents are entitled to collect the ground rent and other fees is at large in Writ Appeal No.1050 of 2025 and therefore, the respondents cannot insist upon the petitioner to pay those charges as a condition precedent for issuing the occupancy certificate in respect of Block No.
He contends that the respondent has sanctioned plan for each block separately and therefore, the respondent is bound to grant an occupancy certificate for each block by assessing the charges payable. He contends that the petitioner is willing to pay a sum of Rs.2,19,48,000/- (Rupees Two Crores Nineteen Lakhs Forty Eight Thousand only), which is the outstanding amount payable in respect of Block No.11 apart from a sum of Rs.76,65,000/- (Rupees Seventy Six Lakhs Sixty Five Thousand only), which is towards the compounding fee and therefore, seeks for a direction to the respondent to sanction the occupancy certificate without insisting upon the petitioner to pay a sum of Rs.22,38,64,588/- (Rupees Twenty Two HC-KAR NC: 2025:KHC:50753 Crores Thirty Eight Lakhs Sixty Four Thousand Five Hundred and Eighty Eight only).
The learned counsel for the respondents, on the other hand, submits that the petitioner was due of a sum of Rs.22,38,64,588/- (Rupees Twenty Two Crores Thirty Eight Lakhs Sixty Four Thousand Five Hundred and Eighty Eight only). He contends that if the petitioner pays up the said amount, the respondent would have no objection to issue an occupancy certificate. He however contends that, in case, if the Respondents/BBMP fails in Writ Appeal No.1050 of 2025, the Respondents/BBMP would refund the said amount. He therefore submits that the impugned demand notice cannot be upset on the claim of the petitioner that it is willing to pay a sum of Rs.2,19,48,000/- (Rupees Two Crores Nineteen Lakhs Forty Eight Thousand only) for issuing the occupancy certificate in respect to Block No.
He also submits that the petitioner who is a member of KREDI approached the respondents seeking for installments to pay the said sum HC-KAR NC: 2025:KHC:50753 of Rs.22,38,64,588/- (Rupees Twenty Two Crores Thirty Eight Lakhs Sixty Four Thousand Five Hundred and Eighty Eight only) and that the respondent as a matter of policy had permitted the sum of Rs.22,38,64,588/- (Rupees Twenty Two Crores Thirty Eight Lakhs Sixty Four Thousand Five Hundred and Eighty Eight only) to be paid in three installments. He therefore submits that if the petitioner undertakes to pay the aforesaid amount within the time mentioned in the letter dated 27.11.2025, the respondent would release the occupancy certificate.
In view of the above, this Court is of the opinion that as of now, there is not much dispute between the petitioner and the respondents. Therefore, this petition deserves to be disposed of directing the respondents to issue an occupancy certificate in respect of Block No.11 upon the petitioner paying a sum of Rs.2,19,48,000/- (Rupees Two Crores Nineteen Lakhs Forty Eight Thousand only) along with a sum of Rs.76,65,000/- (Rupees Seventy Six Lakhs Sixty Five Thousand only). If the petitioner pays HC-KAR NC: 2025:KHC:50753 the said amount within a period of one week, the occupancy certificate shall be issued within period of two weeks, thereafter. The petitioner shall also give an undertaking and pay the balance amount of ground rent and other charges of Rs.22,38,64,588/- (Rupees Twenty Two Crores Thirty Eight Lakhs Sixty Four Thousand Five Hundred and Eighty Eight only) as per the installments given by the respondents, in terms of the letter dated 27.11.2025, referred supra. The grant of occupancy certificate in respect of Block No.11 and the payment of Rs.22,38,64,588/- (Rupees Twenty Two Crores Thirty Eight Lakhs Sixty Four Thousand Five Hundred and Eighty Eight only) by the petitioner, shall be subject to the outcome of Writ Appeal No.1050 of 2025 (LB-BMP).
The writ petition stands disposed of on the above terms. (R. NATARAJ) JUDGE
DH List No.: 1 Sl No.: 36
Reproduced from the public record of the Karnataka High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.