Sri M R Balakrishna vs. The State Of Karnataka
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The petitioner, Sri M.R. Balakrishna, filed a writ petition challenging the Karnataka Municipal Corporations and Certain Other Law (Amendment) Act, 2021 (Karnataka Act No. 01 of 2022) and subsequent amendments and notifications. The petitioner sought to declare these acts and related office orders, notifications, circulars, and a demand notice as ultra vires the Constitution and contrary to previous court decisions. The petitioner also sought quashing of specific sections of the Karnataka Town & Country Planning Act, 1961, and related rules and bye-laws, and a direction to issue a sanction plan for commercial building construction without demanding various fees and charges. The core issue was whether the impugned legislation and demands were legally sustainable.
Held
The High Court held that the core issues raised in the present writ petition were substantially covered and decided by a coordinate bench in a reported judgment. Consequently, the Court quashed and 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). The Court also declared that 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 on plots exceeding 20,000 square meters. It was further held that if fees were previously collected for change of land use or layout plan approval, no further fee should be levied for subsequent development plans. The linkage of levies to market or guidance value under Section 45-B of the Karnataka Stamp Act was declared illegal, and all related circulars and demand notices were quashed. Clause 3.8 of the BBMP Building Bye-laws, 2003, concerning 'Ground Rent', was also struck down. The impugned demand notice dated 28.11.2024 was set aside, and BBMP was directed to issue fresh/modified plans and process the petitioner's application for building license and sanction strictly in accordance with law.
Key Issues
1. Whether 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) are ultra vires the Constitution and liable to be quashed? The petitioner argued that these amendments were unconstitutional and violated previous court pronouncements. The respondents' arguments are not explicitly detailed in this section of the judgment, but their actions indicate a defense of the impugned legislation. 2. Whether Section 18-A of the Karnataka Town & Country Planning Act, 1961, read with Rules 37-A and 37-C of the Karnataka Planning Authority Rules, 1965, and Clause 3.8 of the BBMP Building Bye-laws, 2003, are legally valid and applicable to the petitioner's case? The petitioner contended that these provisions, along with related notifications and circulars, were illegal and arbitrary, particularly concerning the levy of fees and charges like ground rent and GST on ground rent. The respondents likely argued for the validity and applicability of these provisions.
Sections Cited
Section 18-A, Rule 37-A, Rule 37-C, Clause 3.8
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Cause title — parties, addresses and appearances
ORAL ORDER
This petition is filed seeking the following reliefs:- “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-R) as HC-KAR NC: 2025:KHC:23326 being ultra vires the Constitution in so far, the Petitioner is concerned 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 13/01/2022 (Annexure-R) is in violation/contrary to the decision of this Hon'ble Court in W.P No.4601/2020 (LB-BMP) which is at Annexure-P. 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-S) in so far, the Petitioner is concerned. iv) grant an order, direction or writ in the nature of Certiorari quashing Section 18-A of the Karnataka Town & Country Planning Act, 1961 brought into effect by Karnataka Act No. 23 of 2004 (Karnataka Town & Country Planning (Amendment) Act, 1998) as contained in (Annexure-K) insofar as Section 18-A(i) and (iv) of the Karnataka Act No. 23 of 2004 is concerned; v) 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 25/02/2020 as contained in (Annexure-J) insofar as the inserted Rule 37-A and 37-C is concerned; vi) issue a writ or order by way of certiorari quashing the circular dated 14/08/2020, bearing No. HC-KAR NC: 2025:KHC:23326 He.Ni.Ka.Pa.Ko/P.R/320/2020-21 issued by the Respondent No.3 (Annexure-L) in so far the Petitioner is concerned. vii) Grant an order, direction or writ in the nature of Certiorari quashing the Notification issued by the 1st Respondent bearing No. UDD 23 TTP 2020 (E) dated 21/06/2021 as contained in (Annexure-M) insofar as the inserted Rule 37-A and 37-C is concerned; viii) issue a writ or order by way of certiorari quashing the circular dated 24/06/2021, bearing No. He.Ni.Na.Yo/P.R/320/2020-21 issued by the Respondent No.3 (Annexure-N) in so far the Petitioner is concerned. ix) to declare that the entire Bruhat Bengaluru Mahanagara Palike and Certain other Law (Amendment) Act, 2023 notified on 16/08/2024 vide Notification bearing No.DPAL 36 Shasana 2023, Bengaluru issued by the Respondent No.2 (Annexure-T1) as being ultra vires the Constitution of India". x) issue a writ or order by way of certiorari quashing the demand notice dated 28/11/2024, bearing No.BBMP/Ad.Com/ SUT/1086/24-25, issued by the Respondent No.4 (Annexure-D) 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 for site, security deposit, Lake Rejuvenation fee, Cess for water supply scheme, Surcharge for formation HC-KAR NC: 2025:KHC:23326 outer ring road, Cess for improvement of slum, Surcharge for Mass Rapid Transport System, Labour cess and etc., as illegal, without juri iction and arbitrary. xi) Issue a writ or order or direction by way of mandamus directing the Respondent No.3 and 4 BBMP to issue the sanction plan for construction of the Commercial Building in the Schedule Property without insisting the Ground rent, GST on Ground rent, License fee, scrutiny fee, Betterment charges for building, Betterment charges for site security deposit, 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 and xii) 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.”
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, HC-KAR NC: 2025:KHC:23326 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. (v) It is hereby declared that if fee has been earlier collected for change of land use or while HC-KAR NC: 2025:KHC:23326 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 citizens of Bengaluru. This would also augment the present situation." HC-KAR NC: 2025:KHC:23326
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).
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 HC-KAR NC: 2025:KHC:23326 development plans, in view of the explanatory 'Note' to Table I of Rule 37-A.
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.
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. HC-KAR NC: 2025:KHC:23326
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 28.11.2024 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 fresh/modified plan as the case may be. (iv) Respondent Nos.3 and 4 - BBMP are 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 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 HC-KAR NC: 2025:KHC:23326 to the outcome of any appeal that may be filed by the BBMP against the judgment. Pending applications, if any, are also disposed off. (SACHIN SHANKAR MAGADUM) JUDGE
NBM List No.: 2 Sl No.: 38
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