M/S Swan Silk PVT LTD vs. State Of Karnataka
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The petitioner, M/s. Swan Silk Pvt. Ltd., filed a writ petition challenging the Karnataka Municipal Corporations and Certain Other Law (Amendment) Act, 2021 (Karnataka Act No. 01 of 2022), and various other notifications, circulars, and an office order. The petitioner sought to declare these as ultra vires the Constitution and to quash a demand notice issued by the Bruhat Bengaluru Mahanagara Palike (BBMP) and its Assistant Director, Town Planning. The demand notice included charges for ground rent, GST on ground rent, license fee, scrutiny fee, security deposit, and labour cess. The petitioner also sought a direction to issue a fresh building plan sanction without insisting on these charges.
Held
The Court held that the issues raised in the present writ petition are squarely covered by binding decisions of coordinate benches in W.P.No.23086/2022 (M/s Sapthagiri Shelters) and W.P.No.36017/2018 (Sunderam Shetty). In Sunderam Shetty, levies of Ground Rent, License Fee, Building License Fee, and Scrutiny Fee under relevant bye-laws were declared ultra vires the Act. In M/s Sapthagiri Shelters, Karnataka Act No.01 of 2022 and Karnataka Act No.37 of 2024 were struck down for illegally linking fees under Rule 37-A of the Karnataka Planning Authority Rules, 1965, to market/guidance value under Section 45-B of the Karnataka Stamp Act, 1957. Clause 3.8 of the BBMP Building Bye-laws, 2003, pertaining to Ground Rent, was also declared invalid. Consequently, the impugned demand notice (Annexure-D) was set aside. The BBMP was directed to issue a fresh/modified plan and process the petitioner's application for building license and plan sanction strictly in accordance with law. The issuance of license and plan approval shall not be withheld due to contemplation of an appeal, but will be subject to the outcome of any appeal filed by the BBMP.
Key Issues
1. Whether the Karnataka Municipal Corporations and Certain Other Law (Amendment) Act, 2021 (Karnataka Act No. 01 of 2022) is ultra vires the Constitution in its application to the petitioner? 2. Whether the levies of Ground Rent, License Fee, Building License Fee, and Scrutiny Fee under the relevant bye-laws, as amended by the impugned Act and circulars, are ultra vires the Act and liable to be quashed? The petitioner argued that the impugned Act and related notifications/circulars are unconstitutional and arbitrary, particularly concerning the demand for various fees including GST on ground rent, which they sought to have quashed. They relied on previous judgments of coordinate benches of the High Court. The respondents, represented by the State of Karnataka and BBMP, did not present specific arguments against the petitioner's claims in the judgment, as the court noted the matter was covered by prior decisions.
Sections Cited
Section 45-B, Rule 37-A
AI-generated summary — verify with the full judgment below
Before: DR. AMBEDKAR VEEDHI
The captioned petition is filed seeking the following reliefs: WHEREFORE, it is respectfully prayed that this Hon'ble Court may be pleased 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) NO. DPAL.50SHASANA 2021 notified on 13.01.2022 (ANNEXURE-Q) as being ultra vires the constitution in so HC-KAR NC: 2025:KHC:22871 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) NO. DPAL.50SHASANA 2021 notified on 13.01.2022 (ANNEXURE-Q) as the impugned act is an in verbatim reproduction of the ordinance dated 16.11.2021 is concerned. iii) Grant an order, direction or writ in the nature of certiorari quashing the Office Order No. HaNiNaYo/PR/461/2021-22 dated 09.12.2021 issued by Respondent No-3 as contained in (Annexure-P) 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 and Country Planning Act, 1961 brought into effect by Karnataka Act No. 23 of 2004 dated 03.06.2004 (Karnataka Town and Country Planning (Amendment) Act) as contained in (Annexure-J) 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-H) 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. He.Ni.Ka.Pa.Ko/P.R/320/2020-21 issued by the Respondent No.3 (Annexure-K) in so far the Petitioner is concerned. vii) Grant an order, direction or writ in the nature of certiorari quash the notification issued by the 1st Respondent bearing no. UDD 23 TTP 2020(E) dated 21.06.2021 as contained in (ANNEXURE-L) 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. HC-KAR NC: 2025:KHC:22871 He.Ni.Na.Yo/P.R/320/2021-22 issued by the Respondent No.3 (Annexure-M) in so far the Petitioner is concerned. ix) issue a writ or order by way of certiorari quashing the demand notice dated nil bearing LP.No. BBMP/Ad.Com/YLK/0649/24-25, PRJ/8426/24-25 issued by the Respondent No.3 and 4 (Annexure-D) for demanding in so far it is concerned to Ground rent, GST on Ground rent, License fee, Scrutiny fee, Security deposit, Labour cess and etc. as illegal, without juri iction and arbitrary. x) issue a writ or order or direction by way of mandamus directing the Respondent No.3 and 4 BBMP for issue of New (Fresh Plan Sanction) sanction building in the Schedule Property without insisting the Ground rent(including GST), License fee, Scrutiny fee, Security deposit, Lake Rejuvenation fee, Compound Wall fee, Water Supply Scheme (BWSSB), Ring Road (BDA), improving of Slum (KSCB), MRTS (BDA), 5 % levy service charges etc; xi) 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.
The Co-ordinate Benches of this Court, in W.P.No.23086/2022 and connected matters(herein referred to as “M/s Sapthagiri Shelters”) as well as W.P.No.36017/2018 and connected matters(herein referred to as “Sunderam Shetty”), have comprehensively adjudicated the issue involved and settled the controversy.
In Sunderam Shetty and connected cases, the Co- ordinate Bench declared the levies of Ground Rent, License HC-KAR NC: 2025:KHC:22871 Fee, Building License Fee, and Scrutiny Fee under the relevant bye-laws as ultra vires the Act and quashed the Government Circulars dated 04.09.2015, 27.01.2017, and 30.03.2017. 4. Similarly, in M/s Sapthagiri Shelters and connected matters, the Co-ordinate Bench struck down the Karnataka Act No.01 of 2022 and Karnataka Act No.37 of 2024, holding that linking fees under Rule 37-A of the Karnataka Planning Authority Rules, 1965 to market/guidance value under Section 45-B of the Karnataka Stamp Act, 1957 is illegal. It further quashed all related Circulars and declared Clause 3.8 of the BBMP Building Bye-laws, 2003, pertaining to Ground Rent, as invalid.
The issues raised in the present writ petition are squarely covered by the above binding decisions, wherein the relevant bye-laws and government circulars have been set aside. HC-KAR NC: 2025:KHC:22871
In light of the authoritative pronouncements, the present petition does not warrant separate adjudication and is liable to be allowed in terms of the operative directions issued in the aforesaid writ petitions.
Accordingly, this Court proceeds to pass the following: ORDER (i) The writ petition is allowed. (ii) The impugned demand notice issued by respondents No.3 and 4 as per Annexure-D is hereby set-aside. (iii) Respondent - BBMP is hereby directed to issue fresh/modified plan as the case may be. (iv) Respondent - BBMP is 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 of the plan shall HC-KAR NC: 2025:KHC:22871 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 subject to the outcome of any appeal that may be filed by the BBMP against the said judgment. Pending applications, if any, are also disposed off. (SACHIN SHANKAR MAGADUM) JUDGE HDK List No.: 2 Sl No.: 26
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