St. Joseph College Hostel vs. The State Of Karnataka
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The petitioner, St. Joseph College Hostel, represented by its Secretary and Treasurer, filed a writ petition challenging various provisions of the Karnataka Town and Country Planning Act, 1961, and related notifications, circulars, and government orders. The challenge was primarily against levies such as Ground Rent, GST on Ground Rent, Betterment charges, License fees, Scrutiny fees, and various cesses and surcharges. The petitioner sought to quash a demand notice dated March 19, 2021, issued by the Joint Director (Town Planning-North), BBMP, and also sought a direction to issue a modified sanctioned plan for construction without insisting on these payments. The respondents include the State of Karnataka through its various departments and the Bruhat Bangalore Mahanagara Palike (BBMP) and its officials.
Held
The Court allowed the writ petition, setting aside the impugned demand notice dated March 19, 2021, issued by respondent No. 5. The Court directed the respondent BBMP to issue a fresh/modified plan and to forthwith process the petitioner’s application for a building license and sanction of the building plan strictly in accordance with law. The Court noted that similar issues concerning the levies of Ground Rent, License Fee, Building License Fee, and Scrutiny Fee under relevant bye-laws, as well as the linking of fees under Rule 37-A to market/guidance value, have been comprehensively adjudicated by coordinate benches in previous cases like 'M/s Sapthagiri Shelters' and 'Sunderam Shetty'. These prior judgments had declared such levies ultra vires the Act, struck down relevant Karnataka Acts and Rules, and quashed related circulars and bye-laws. Therefore, the present petition was found to be squarely covered by these binding decisions, warranting no separate adjudication.
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? The petitioner argued that these provisions, which enable certain levies, are beyond the scope of the parent Act. 2. Whether the insertion of Rules 37-A and 37-C in the Karnataka Planning Authority Rules, 1965, by notification dated February 25, 2020, is illegal, particularly concerning the linking of fees to market/guidance value under Section 45-B of the Karnataka Stamp Act, 1957? The petitioner contended that this linkage is arbitrary and without statutory basis. 3. Whether the circulars dated September 4, 2015, and August 14, 2020, issued by the BBMP, and the government order dated January 18, 2007, mandating upfront collection of labour welfare cess, are illegal and arbitrary as they pertain to the petitioner? The petitioner argued these levies are not legally sustainable. The revenue or State did not record specific arguments in the judgment.
Sections Cited
Section 18-A, Rule 37-A, Rule 37-C, Section 45-B
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Cause title — parties, addresses and appearances
ORAL ORDER
Petitioner, in the captioned petition has sought for following reliefs :
"i) Issue a Writ or order or direction 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-G1 insofar as Section 18-A (1) (i) and (iv) of the Karnataka Act No. 23 of 2004 is concerned; ii) Issue a Writ or an order or direction 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 insertion of 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 as the Petitioner is 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:23051 Respondent No.4 (Annexure-H) in so far as the Petitioner is 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 as the Petitioner is concerned. vi) Issue a writ or order by way of certiorari quashing the demand notice dated 19/03/2021 bearing No.BBMP/Addl.Dir/JDNORTH/LP/0014/219-20 and No.Ad.Com/EST/0469/2016-17, issued by the Respondent No.5 (Annexure-D) for demanding in so far it is related 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 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 modified sanctioned plan for construction of a basement and additional two floors on the existing building in the Schedule HC-KAR NC: 2025:KHC:23051 Property without insisting for the payment of 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. viii) Pass any such other Writ order(s) as this Hon'ble Court deems fit in the facts and circumstances of the case including an order for costs 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 HC-KAR NC: 2025:KHC:23051 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:23051
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 19.03.2021 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 HC-KAR NC: 2025:KHC:23051 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
SMJ List No.: 2 Sl No.: 53
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.