Smt. Chandraprabha B vs. State Of Karnataka
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The petitioner, Smt. Chandraprabha B., through her GPA holder, filed a writ petition challenging various provisions of the Karnataka Town and Country Planning Act, 1961, and subsequent notifications, circulars, and government orders. The petitioner sought to quash Section 18-A(i) and (iv) of the Karnataka Town and Country Planning Act, 1961, a notification dated 25/02/2020 regarding inserted rules, circulars dated 04/09/2015 and 14/08/2020, government orders dated 18/01/2007 and 28/02/2007 concerning labor welfare cess, and a demand notice dated 26/04/2021. The demand notice, issued by the Assistant Director of Town Planning, included charges for ground rent, GST on ground rent, betterment charges, excess security deposit, revised license and scrutiny fees, various cesses, and surcharges. The petitioner sought a direction to issue a sanctioned building plan without insisting on these charges.
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 under Rule 37-A to market/guidance values under the Karnataka Stamp Act, 1957. Related circulars were quashed, and Clause 3.8 of the BBMP Building Bye-laws, 2003, concerning Ground Rent, was declared invalid. Based on these authoritative pronouncements, the present petition did not warrant separate adjudication. The impugned demand notice dated 26.04.2021 was set aside. The BBMP was directed to issue a fresh/modified plan and process the petitioner's application for a building license and sanction of the building plan 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 appeal.
Key Issues
1. Whether Section 18-A(i) and (iv) of the Karnataka Town and Country Planning Act, 1961, as amended by Karnataka Act No. 23 of 2004, are ultra vires the Act? 2. Whether the notification dated 25/02/2020, inserting Rules 37-A and 37-C into the Karnataka Planning Authority Rules, 1965, is illegal, particularly concerning the linking of fees to market/guidance values? 3. Whether the circulars dated 04/09/2015 and 14/08/2020 issued by Bruhat Bengaluru Mahanagara Palike (BBMP) are arbitrary and without jurisdiction? 4. Whether the government orders dated 18/01/2007 and 28/02/2007 mandating upfront collection of labor welfare cess are illegal? 5. Whether the demand notice dated 26/04/2021 issued by the Assistant Director of Town Planning, BBMP, demanding various charges including ground rent, GST on ground rent, betterment charges, and various cesses, is illegal and without jurisdiction? Petitioner's arguments: The petitioner contended that the impugned provisions, notifications, circulars, and demand notice were illegal, without jurisdiction, and arbitrary. They sought to quash these actions and obtain a building license and sanctioned plan without the disputed charges. Revenue/State's arguments: The judgment does not record specific arguments from the respondents. However, it refers to prior judgments that have dealt with similar issues.
Sections Cited
Section 18-A, Rule 37-A, Rule 37-C, Section 45-B
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
ORAL ORDER Caption petition is filed seeking the following reliefs :- "i) 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 as contained in ANNEXURE- G1 insofar as section 18-A (i) and (iv) of the Karnataka Act No 23 of 2004 is concerned;
ii) Grant an order, direction or writ in the nature of certiorari quashing the notification issued by the 1st HC-KAR NC: 2025:KHC:24153 respondent bearing No.UDD 3 ТТР 2015 dated 25/02/2020 as contained in ANNEXURE-G insofar as the inserted rule 37-A and 37-C is concerned.
iii) Issue a writ or order by way of certiorari quashing the circular dated 04/09/2015, bearing No.Heninayo/JD(N)/DM3/PR/320/2015-16 issued by the respondent No.4 ANNEXURE-E in so far the petitioners their is concerned.
iv) Issue a writ or order by way of certiorari quashing the circular dated 14/8/2020 bearing No.He.Ni.ka.pa.ko/PR/320/2020-21 issued by the respondent No.4 ANNEXURE-H in so far the petitioners is concerned.
v) Issue a writ or order by way of certiorari quashing the government order bearing No.LD/300/LET/2006 dated 18/1/2007 and the corrigendum order bearing No.LD/300/LET/2006, dated 28/2/2007 issued by the respondent No.2 mandating upfront collection of labor welfare cess (ANNEXURE-F in so for the petitioners is concerned.
vi) Issue a writ or order by way of certiorari quashing the demand notice dated 26/4/2021 bearing No.BBMP/Ad.Com/BMH/0446/20-21, issued by the respondent No.5 ANNEXURE- D for demanding in so HC-KAR NC: 2025:KHC:24153 far it is concerned to ground rent, GST on ground rent, Betterment charges for building, betterment charges for site, excess security deposit, revised license fee, revised scrutiny fee, cess for water supply scheme, surcharge for formation outer ring road, compound wall fee cess for improvement of slum, surcharge for mass rapid transport system, labour cess and etc, as illegal, without juri iction and arbitrary.
vii) Issue a writ or order or direction by way of mandamus directing the respondent No.4 and 5 BBMP to issue the sanction plan for construction of the building in the schedule property without insisting the ground rent GST on ground rent, betterment charges for building, betterment charges for site, excess security deposit, revised license fee, revised scrutiny 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, and viii) Pass any such other orders as this Hon'ble court deems fit in the facts and circumstances of the case in the interest justice and equity." HC-KAR NC: 2025:KHC:24153
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. 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 HC-KAR NC: 2025:KHC:24153 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.
Accordingly, this Court proceeds to pass the following: ORDER (i) The writ petition is allowed. (ii) The impugned demand notice dated 26.04.2021 issued by respondent No.5 as per Annexure-D is hereby set-aside. HC-KAR NC: 2025:KHC:24153 (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 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
NG List No.: 2 Sl No.: 41
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.