Mr.Suraksh Ravikumar vs. The State Of Karnataka
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The petitioner, Mr. Suraksh Ravikumar, 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 Bruhat Bangalore Mahanagara Palike (BBMP). The petitioner sought to quash Section 18-A(i) and (iv) of the Karnataka Town and Country Planning Act, 1961 (as amended by Karnataka Act No. 23 of 2004), Rule 37-A and 37-C of the Karnataka Planning Authority Rules, 1965, certain circulars issued by the BBMP, and a government order mandating upfront collection of labour welfare cess. The petitioner also challenged a demand notice dated 03/04/2021 issued by the Assistant Director, Town Planning-(East), BBMP, for various charges including ground rent, GST on ground rent, betterment charges, license fees, and various cesses.
Held
The Court held that the issues raised in the present writ petition were squarely covered by the binding decisions of coordinate benches in 'M/s Sapthagiri Shelters' and 'Sunderam Shetty' cases. 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 linking fees to market/guidance value, and related circulars were quashed, with Clause 3.8 of 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. The impugned demand notice dated 03.04.2021 was set aside. The BBMP was directed to issue a fresh/modified plan and forthwith 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 approval was not to be withheld pending any appeal by the BBMP, though it would be subject to the outcome of any 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. 2. Whether Rule 37-A and 37-C of the Karnataka Planning Authority Rules, 1965, are illegal and arbitrary. 3. Whether the circulars and government orders mandating upfront collection of labour welfare cess and other charges are valid. The petitioner argued that the impugned provisions, notifications, and circulars are illegal, without jurisdiction, and arbitrary. The petitioner relied on previous judgments of the High Court, specifically 'M/s Sapthagiri Shelters' and 'Sunderam Shetty' cases, which had comprehensively adjudicated similar issues. The respondents, represented by the State and BBMP, did not present any arguments against the petitioner's claims, as the court noted that the issues were squarely covered by binding precedent. The court observed that the respondents did not contest the findings of the earlier judgments.
Sections Cited
Section 18-A, Rule 37-A, Rule 37-C
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Cause title — parties, addresses and appearances
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: a). Issue 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. b). Issue 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; c). Issue a writ or order by way of certiorari quashing the circular dated 04/09/2015, Bearing No.Heninayo/JD(N)/DM3/PR/ 320 HC-KAR NC: 2025:KHC:21740 /2015-16 issued by the Respondent No.4 (Annexure-E) in so far the Petitioners are concerned; d). 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 Petitioners are concerned. e). Issue a writ or order by way of certiorari quashing the Government order bearing No.LD/300/LET/2006 dated 18/01/2007 vide Annexure-F and the corrigendum order bearing No.LD/300/LET/2006, dated 28/02/2007 vide Annexure-F1, both issued by the Respondent No.2 mandating upfront collection of labour welfare cess in so far the Petitioners are concerned; f). Issue a writ or order by way of certiorari quashing the demand notice dated 03/04/2021 bearing No.BBMP/Ad. Com/EST/0140/19-20, issued by the Respondent No.5 (Annexure-D) for demanding in so far it is concerned to Ground rent, GST on Ground rent, HC-KAR NC: 2025:KHC:21740 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; g). 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: HC-KAR NC: 2025:KHC:21740 h). 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 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 HC-KAR NC: 2025:KHC:21740 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.
Accordingly, this Court proceeds to pass the following: HC-KAR NC: 2025:KHC:21740 ORDER (i) The writ petition is allowed. (ii) The impugned demand notice dated 03.04.2021 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. (vi) If the building license and sanction plan are issued, the same shall be subject to the HC-KAR NC: 2025:KHC:21740 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.: 34
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.