Sri. Preetham J vs. The State Of Karnataka
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The petitioner, Sri Preetham J., 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 a demand notice issued by the Bruhat Bangalore Mahanagara Palike (BBMP) and other state authorities. The petitioner sought to declare these enactments and actions as ultra vires the Constitution and in violation of previous court decisions. Specifically, the petitioner challenged the imposition of ground rent, GST on ground rent, license fees, scrutiny fees, betterment charges, and other levies, seeking a sanction plan for commercial building construction without these demands. The petition was filed before the High Court of Karnataka.
Held
The Court held that the issues raised in the present writ petition are squarely covered by the 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 and government circulars were quashed. 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 to market/guidance value, and related circulars and Clause 3.8 of the BBMP Building Bye-laws, 2003, pertaining to Ground Rent, were quashed. Consequently, the Court found no need for separate adjudication and allowed the petition. The impugned demand notice dated 28.10.2024 was set aside, and the BBMP was directed to issue a fresh sanction plan and process the petitioner's application for a building license strictly in accordance with law. The issuance of the license and plan shall not be withheld pending any appeal by the BBMP, but will be subject to the outcome of such appeals.
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 aforementioned Act of 2021 is in violation of the decision of this Court in W.P No.4601/2020? 3. Whether the Office Order No. HaNiNaYo/PR/461/2021-22 dated 09/03/2022 issued by Respondent No.3 is liable to be quashed? 4. Whether Section 18-A(i) and (iv) of the Karnataka Town & Country Planning Act, 1961, as amended by Karnataka Act No. 23 of 2004, is liable to be quashed? 5. Whether the Notification bearing No. UDD 3 TTP 2015 dated 25/02/2020, inserting Rules 37-A and 37-C, is liable to be quashed? 6. Whether the circular dated 14/08/2020, bearing No. He.Ni.Ka.Pa.Ko/P.R/320/2020-21, issued by Respondent No.3 is liable to be quashed? 7. Whether the Notification bearing No. UDD 23 TTP 2020 (E) dated 21/06/2021, inserting Rules 37-A and 37-C, is liable to be quashed? 8. Whether the circular dated 24/06/2021, bearing No. He.Ni.Na.Yo/P.R/320/2020-21, issued by Respondent No.3 is liable to be quashed? 9. Whether the Bruhat Bengaluru Mahanagara Palike and Certain other Law (Amendment) Act, 2023 (Notification bearing No.DPAL 36 Shasana 2023) is ultra vires the Constitution? 10. Whether the demand notice dated 28/10/2024, bearing No.BBMP/Ad.Com/EST/0736/24-25, issued by Respondent No.4 is illegal and without jurisdiction? Petitioner's Arguments: The petitioner argued that the impugned enactments, notifications, circulars, and demand notice were ultra vires the Constitution and contrary to previous judgments of the High Court. Respondents' Arguments: The judgment does not record specific arguments from the respondents, but rather relies on previous binding decisions of coordinate benches.
Sections Cited
Section 45-B of the Karnataka Stamp Act, 1957, Rule 37-A of the Karnataka Planning Authority Rules, 1965, Clause 3.8 of the BBMP Building Bye-laws, 2003, Section 18-A of the Karnataka Town & Country Planning Act, 1961
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Cause title — parties, addresses and appearances
ORAL ORDER
The captioned petition is filed seeking the following reliefs: HC-KAR NC: 2025:KHC:24590 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 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 on 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. He. Ni.Ka. HC-KAR NC: 2025:KHC:24590 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 28/10/2024, bearing No.BBMP/Ad.Com/EST/ 0736/24-25, 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 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 HC-KAR NC: 2025:KHC:24590 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
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 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. HC-KAR NC: 2025:KHC:24590
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.
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. HC-KAR NC: 2025:KHC:24590
Accordingly, this Court proceeds to pass the following: ORDER (i) The writ petition is allowed. (ii) The impugned demand notice dated 28.10.2024 issued by respondent No.4 as per Annexure-D is hereby set-aside. (iii) Respondent - BBMP is hereby directed to issue fresh sanction plan. (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 not be withheld merely on the ground that the BBMP is contemplating to file an appeal against the reported judgment. HC-KAR NC: 2025:KHC:24590 (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.: 46
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