Smt P Prashantha vs. The State Of Karnataka
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The petitioner, Smt. P. Prashantha, filed a writ petition challenging various provisions of the Karnataka Town and Country Planning Act, 1961, and subsequent notifications, circulars, and government orders. Specifically, the petitioner sought to quash Section 18-A(i) and (iv) of the Karnataka Town and Country Planning Act, 2004, Rule 37-A and 37-C inserted by a notification dated 25/02/2020, circulars dated 04/09/2015 and 14/08/2020 issued by Bruhat Bengaluru Mahanagara Palike (BBMP), a government order dated 18/01/2007 and its corrigendum dated 28/02/2007 mandating upfront collection of labour welfare cess, and a demand notice dated 17/02/2021 issued by the Assistant Director, Town Planning-(South), BBMP. The demand notice included charges for ground rent, GST on ground rent, betterment charges, license fee, scrutiny fee, and various cesses and surcharges. The petitioner sought to quash these levies and sought a direction to issue a sanctioned plan without insisting on these charges.
Held
The High Court of Karnataka held that the issues raised in the present writ petition are squarely covered by previous binding decisions of co-ordinate benches. Specifically, in the cases of 'M/s Sapthagiri Shelters' and 'Sunderam Shetty', similar levies and provisions were adjudicated. 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 related 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 value under the Karnataka Stamp Act, 1957, and related circulars were quashed, with Clause 3.8 of the BBMP Building Bye-laws, 2003, pertaining to Ground Rent, declared invalid. Consequently, the present petition did not warrant separate adjudication and was liable to be allowed in terms of the operative directions issued in the aforesaid writ petitions. The impugned demand notice dated 17.02.2021 was set aside, and 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 was not to be withheld pending any appeal by BBMP, but would 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 Constitution of India and liable to be quashed. (Question of law) 2. Whether Rule 37-A and 37-C, inserted by the notification dated 25/02/2020, are illegal and liable to be quashed. (Question of law) 3. Whether the circulars dated 04/09/2015 and 14/08/2020 issued by BBMP, and the government order dated 18/01/2007 and its corrigendum dated 28/02/2007 regarding labour welfare cess, are arbitrary and liable to be quashed. (Question of law) 4. Whether the demand notice dated 17/02/2021 issued by BBMP, demanding various charges including ground rent, GST on ground rent, betterment charges, license fee, scrutiny fee, and cesses, is illegal, without jurisdiction, and arbitrary. (Question of law) Petitioner's arguments: The petitioner sought to quash the impugned provisions, notifications, circulars, government orders, and demand notice on grounds of illegality, lack of jurisdiction, and arbitrariness. The petitioner also sought a direction to issue the sanctioned plan without insisting on the disputed charges. Respondents' arguments: The judgment does not record specific arguments from the respondents. However, it notes that the issues raised are covered by previous binding decisions.
Sections Cited
Section 18-A, Rule 37-A, Rule 37-C
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ORAL ORDER
The captioned petition is filed seeking for the following reliefs: "WHEREFORE, it is respectfully prayed that this Hon'ble Court may be pleased to: 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, HC-KAR NC: 2025:KHC:21728 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. 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 17/02/2021, bearing No. BBMP/Ad.Com/SUT /1188/2020-21, 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 HC-KAR NC: 2025:KHC:21728 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 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 HC-KAR NC: 2025:KHC:21728 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 and 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 HC-KAR NC: 2025:KHC:21728 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 17.02.2021 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 HC-KAR NC: 2025:KHC:21728 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
VMB List No.: 2 Sl No.: 22
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