Sri.Mohammed Ismail vs. The State Of Karnataka
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The petitioner, Sri. Mohammed Ismail, filed a writ petition challenging various provisions of the Karnataka Town and Country Planning Act, 1961, as amended, and related notifications and circulars issued by the State of Karnataka and the Bruath Bengaluru Mahanagara Palike (BBMP). Specifically, the petitioner sought to quash Section 18-A(i) and (iv) of the Act, notifications introducing Rules 37-A and 37-C, circulars dated 04/09/2015 and 14/08/2020 issued by BBMP, and a government order mandating upfront collection of labour welfare cess. The petitioner also challenged a demand notice dated 24/12/2020 issued by the Assistant Director, Town Planning-(East), BBMP, for various charges including GST on ground rent, betterment charges, license fees, and various cesses and surcharges. The petitioner sought directions to issue a sanction plan without insisting on these charges.
Held
The Court allowed the writ petition, setting aside the impugned demand notice dated 24.12.2020 issued by respondent No. 5 (BBMP). The Court directed the BBMP to issue a fresh or modified plan as the case may be 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 clarified that the issuance of the building license and approval of the plan shall not be withheld due to the BBMP contemplating an appeal, but any issued license or plan would be subject to the outcome of any such appeal. The Court noted that similar issues had been comprehensively adjudicated and settled by co-ordinate 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 were declared ultra vires and related 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 linking fees to market/guidance value, and related circulars and Clause 3.8 of BBMP Building Bye-laws, 2003, were quashed. The Court found the present petition squarely covered by these binding decisions.
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 introducing Rules 37-A and 37-C under the Karnataka Planning Authority Rules, 1965, are valid. 3. Whether the circulars issued by BBMP and the government order mandating upfront collection of labour welfare cess are legal and applicable to the petitioner. 4. Whether the demand notice dated 24/12/2020, including charges like GST on ground rent, betterment charges, license fees, and various cesses and surcharges, is illegal, without jurisdiction, and arbitrary. Petitioner's arguments: The petitioner contended that the impugned provisions, notifications, circulars, and demand notice are illegal, without jurisdiction, and arbitrary, and sought their quashing. Revenue/State's arguments: The judgment does not record specific arguments from the respondents.
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) 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-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/PR/320/2015-16 issued by the Respondent No.4 (Annexure-E) in so far the Petitioner is concerned. HC-KAR NC: 2025:KHC:23036 (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 Respondent No.4 (Annexure-H) in so far 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 the Petitioner is concerned.
(vi) issue a writ or order by way of certiorari quashing the demand notice dated 24/12/2020, bearing No.BBMP/Ad.Com/EST/1046/2020-21, 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, 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. HC-KAR NC: 2025:KHC:23036 (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 with respect to the Schedule Property without insisting the Ground rent, GST on Ground rent, Betterment charges for building, Betterment charges for site, 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, HC-KAR NC: 2025:KHC:23036 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. 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:23036
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 24.12.2020 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:23036 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.: 38
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.