Sri Y Madhu vs. The State Of Karnataka
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The petitioners, Sri Y. Madhu and Smt. Y. Nirmala, filed a writ petition seeking to quash Section 18-A(i) and (iv) of the Karnataka Town & Country Planning Act, 1961 (as amended), certain rules and notifications related to building plan sanction and fee collection, a circular regarding labour welfare cess, and a demand notice issued by the Bruhat Bengaluru Mahanagara Palike (BBMP) Assistant Director, Town Planning. The demand notice included various charges such as Ground rent, GST on Ground rent, Betterment charges, excess security deposit, revised license fee, revised scrutiny fee, and various cesses and surcharges. The petitioners sought a direction to issue a sanction plan without insisting on these charges.
Held
The Court held that the issues raised in the present writ petition are squarely covered by previous binding decisions of coordinate benches. Specifically, in the case of '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 related government circulars were quashed. Furthermore, in the case of '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 value, and related circulars were quashed. Clause 3.8 of the BBMP Building Bye-laws, 2003, pertaining to Ground Rent, was also declared invalid. Consequently, the Court allowed the writ petition, set aside the impugned demand notice dated 03.02.2021, and directed the BBMP to issue a fresh/modified plan and process the petitioner's application for building license and sanction of the building plan strictly in accordance with law. The issuance of the license and plan approval 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 & Country Planning Act, 1961, as amended, are ultra vires the Constitution? 2. Whether Rule 37-A and 37-C inserted by notification dated 25/02/2020 are illegal? 3. Whether the circular dated 04/09/2015 and the circular dated 14/08/2020 issued by the BBMP are liable to be quashed? 4. Whether the Government order dated 18/01/2007 and its corrigendum dated 28/02/2007 mandating upfront collection of labour welfare cess are illegal? 5. Whether the demand notice dated 03/02/2021 issued by the BBMP Assistant Director, Town Planning, demanding various charges including Ground rent, GST on Ground rent, Betterment charges, and several cesses, is illegal, without jurisdiction, and arbitrary? The petitioners argued that the impugned provisions, rules, circulars, and demand notice are illegal and arbitrary. The respondents did not record any specific arguments in the judgment.
Sections Cited
Section 18-A, Rule 37-A, Rule 37-C
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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 the Karnataka Act No.23 of 2004 (Karnataka Town & Country Planning (Amendment) Act, 1998 as contained in Anenxure-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 Respondent bearing No. UDD 3 TTP 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/PETITIONER/320/2015- 16 issued by the Respondent No.4 (Annexure-E) insofar the petitioners are concerned. iv) 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 HC-KAR NC: 2025:KHC:24110 Respondent No.4 (Annexure-H) insofar the Petitioners are concerned. v) issue a writ or order by way of certiorari quashing the Government order bearing No.LD/300/LET/2006 dated 18/01/2007 and the corrigendum order bearing No.LD/300/LET/2006, dated 28/02/2007 issued by the Respondent No.2 mandating upfront collection of labour welfare cess (Annexure-F) in so far the Petitioners are concerned. vi) issue a writ or order by way of certiorari quashing the demand notice dated 03/02/2021 bearing No.BBMP/Ad.Com/MDP/1090/20-21, issued by the Respondent No.5 (Annexure-D) for demanding in so 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, 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 HC-KAR NC: 2025:KHC:24110 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 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. Similarly, in M/s Sapthagiri Shelters HC-KAR NC: 2025:KHC:24110 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:24110
Accordingly, this Court proceeds to pass the following:
ORDER (i) The writ petition is allowed. (ii) The impugned demand notice dated 03.02.2021 issued by respondent No.5 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 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:24110 (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.: 6
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.