Jessini George vs. The State Of Karnataka
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The petitioner, Jessini George, filed a writ petition challenging the Karnataka Municipal Corporations and Certain Other Law (Amendment) Act, 2021, and various office orders, notifications, circulars, and a demand notice issued by the Bruhat Bengaluru Mahanagara Palike (BBMP) and other state authorities. The demand notice dated 12.06.2025, issued by the Assistant Director of Town Planning, sought various charges including ground rent, GST on ground rent, license fee, scrutiny fee, betterment charges, lake rejuvenation fee, cess for water supply, surcharge for outer ring road, cess for slum improvement, surcharge for Mass Rapid Transport System, and labour cess. The petitioner sought to declare the amendment act ultra vires and quash the impugned orders and demand notice, and also sought a direction to issue a sanctioned plan without insisting on these charges.
Held
The Court noted that the core issues raised in the present writ petition were substantially covered and decided by a coordinate bench in a reported judgment concerning similar challenges to the Karnataka Municipal Corporations and Certain Other Law (Amendment) Acts of 2021 and 2023. The coordinate bench had quashed and set aside these amendment acts. It was also declared that Section 18-A of the Karnataka Town and Country Planning Act, 1961, read with Rules 37-A and 37-C of the Karnataka Planning Authority Rules, 1965, apply only to development proposals for plots exceeding 20,000 square meters. The court further held that if fees were previously collected for land use change or layout plan approval, no further fee should be levied for subsequent development plans. The linkage of levies to market or guidance value was declared illegal, and all consequential circulars and demand notices were quashed. Clause 3.8 of the BBMP Building Bye-laws, 2003, imposing 'Ground Rent', was also struck down. Consequently, the present writ petition was allowed, the impugned demand notice was set aside, and the BBMP was directed to issue fresh/modified plans and process the building license application strictly in accordance with law, subject to the outcome of any appeal by the BBMP.
Key Issues
1. Whether the Karnataka Municipal Corporations and Certain Other Law (Amendment) Act, 2021, and the Karnataka Municipal Corporations and Certain Other Law (Amendment) Act, 2023, are ultra vires the Constitution, as argued by the petitioner. The revenue did not record specific arguments but relied on the pronouncements of a coordinate bench. 2. Whether Section 18-A of the Karnataka Town & Country Planning Act, 1961, read with Rules 37-A and 37-C of the Karnataka Planning Authority Rules, 1965, are applicable to all plot sizes or only to those exceeding 20,000 square meters, as contended by the petitioner. The revenue's stance is not explicitly recorded. 3. Whether the linking of fees under Rule 37-A to the market value or guidance value under Section 45-B of the Karnataka Stamp Act, 1957, is illegal, as argued by the petitioner. The revenue's position is not detailed. 4. Whether Clause 3.8 of the Bengaluru Mahanagara Palike Building Bye-laws, 2003, providing for 'Ground Rent', is illegal, as asserted by the petitioner. The revenue's arguments are not specified. 5. Whether the impugned demand notice dated 12.06.2025, issued by the BBMP, is illegal and without jurisdiction, as claimed by the petitioner. The revenue's defense is not recorded.
Sections Cited
Section 18-A, Rule 37-A, Rule 37-C, Section 45-B, Clause 3.8
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
ORAL ORDER
The captioned petition is filed seeking the following reliefs:-
"i. Grant an order declaring that the entire Karnataka Municipal Corporations and Certain Other Law (Amendment) Act. 2021 (Karnataka Act No. 01 of DPAL/50/SHASANA/2021, notified 2022) bearing on 13/01/2022 (ANNEXURE-P) as being ultra vires the Constitution in so far, the Petitioner is concerned in so far, the Petitioner is concerned, enacted by Respondent No.2. ii. Grant an order, direction or writ in the nature of certiorari quashing the Office Order No. HaNiNaYo/PR/461/2021-22 dated 09/03/2022 Issued by Respondent No.3 as contained in (ANNEXURE-Q) in so far, the Petitioner is concerned. HC-KAR NC: 2025:KHC:21505 iii. 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-J) insofar as Section 18-A (1) and (iv) of the Karnataka Act No. 23 of 2004 concerned; issued by Respondent No. 1. iv. Grant an order, direction or writ in the nature Certiorari quashing the Notification Issued by the Respondent bearing No. UDD 3 TTP 2015 dated 25/02/202 as contained in (ANNEXURE-H) insofar as the inserted Rul 37-A and 37-C is concerned;
v. Issues 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.3 (Annexure- K) In so far, the Petitioner is concerned.
vi. Grant an order, direction or writ in the nature of Certiorari quashing the Notification issued by the 1st Respondent bearing No. UDD 23 TTP 2020 (E) dated 21/06/2021 as contained in (ANNEXURE-L) insofar as the inserted Rule 37- A and 37-C is concerned.
vii. issue a writ or order by way of certiorari quashing the circular dated 24/06/2021, bearing No. He.Ni.Na.Yo/P. R/320/2021-22 issued by the Respondent No.3 (ANNEXURE-M) in so far, the Petitioner is concerned.
viii. issue a writ or order by way of certiorari quashing the demand notice dated: 12.06.2025, bearing LP No. BBMP/Ad.Com./MDP/0005/25-26, Issued by the Respondent No.4 (ANNEXURE-C) for demanding in so far it is concerned to Ground rent, GST on Ground rent, License fee, scrutiny fee, Betterment charges for building, Betterment charges of site, Lake Rejuvenation 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.
ix. Issue a writ or order or direction by way of mandamus directing the Respondent No.3 and 4 BBMP to issue the HC-KAR NC: 2025:KHC:21505 sanction plan for construction of the industry Building in the Schedule Property without insisting the Ground rent, GST on Ground rent, License fee, scrutiny fee, Betterment charges for building, Betterment charges of site, Lake Rejuvenation fee, Cess for water supply scheme, Surcharge for formation outer ring road, Cess for improvement of slum and Surcharge for Mass Rapid Transport System, Labour cess and x. 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."
It is brought to the notice of this Court that across the Bar, the issue is dealt by the Co-ordinate Bench in the reported judgment in W.P.No.23086/2022 and connected matters. The Co-ordinate Bench, while deciding the issue, has set-aside the Karnataka Municipal Corporations and Certain Other Law (Amendment) Act, 2021 (Karnataka Act No.01 of 2022) and the Karnataka Municipal Corporations and Certain Other Law (Amendment) Act, 2023, (Karnataka Act No.37 of 2024). Therefore, this Court deems it fit to cull out the operative portion of the order, which reads as under; "ORDER (i) The writ petitions are partly allowed. HC-KAR NC: 2025:KHC:21505 (ii) The Karnataka Municipal Corporations and Certain Other Law (Amendment) Act, 2021 (Karnataka Act No.01 of 2022), is hereby quashed and set aside. (iii) The Karnataka Municipal Corporations and Certain Other Law (Amendment) Act, 2023, (Karnataka Act No.37 of 2024), is hereby quashed and set aside. (iv) It is hereby declared that the provisions contained in Section 18-A of the Karnataka Town and Country Planning Act, 1961, read with Rules 37-A and 37-C of the Karnataka Planning Authority Rules, 1965, are applicable only in respect of ‘Development Plan’ containing the proposal for construction on plots measuring more than 20,000 square meters in extent and not in respect of plots measuring less than 20,000 square meters. (v) It is hereby declared that if fee has been earlier collected for change of land use or while approving a layout plan, fee shall not be collected for subsequent ‘Development Plan’ in terms of the ‘Note’ found below TABLE I of Rule 37-A of the Karnataka Planning Authority Rules, 1965. (vi) It is hereby declared that the linking of the fee leviable under Rule 37-A of the Karnataka Planning Authority Rules, 1965, to the ‘market value’ or ‘guidance value’ as determined under Section 45-B of the Karnataka Stamp Act, 1957, is illegal. However, liberty is reserved to the respondent-State Government HC-KAR NC: 2025:KHC:21505 and the BBMP to re-fix a standard after collecting empherical data. (vii) Consequently, all the impugned Circulars which seek to give effect to the Rules 37-A and 37-C of the Karnataka Planning Authority Rules, 1965, are hereby quashed and set aside. (viii) It is hereby declared that Clause 3.8 of the Bengaluru Mahanagara Palike Building Bye- laws, 2003, providing for ‘Ground Rent’, is illegal and are accordingly quashed and set aside. (ix) Consequently, all the impugned Demand Notices raised by the respondent-BBMP, in respect of the writ petitioners herein are also quashed and set aside. It would be advisable that the BBMP may come out with a scheme for ‘One Time Settlement’ and settle the levy and collect the fee generally acceptable to the citizens of Bengaluru. This would also augment the present situation."
In the present writ petition, the core issue raised stands substantially covered and decided by the authoritative pronouncement of the coordinate bench, wherein the writ petitions were partly allowed and several consequential reliefs were granted. The Hon’ble Court, in unequivocal terms, quashed and set aside the Karnataka HC-KAR NC: 2025:KHC:21505 Municipal Corporations and Certain Other Law (Amendment) Acts of 2021 and 2023 (Karnataka Act Nos.01 of 2022 and 37 of 2024 respectively).
The Court further declared that the provisions under Section 18-A of the Karnataka Town and Country Planning Act, 1961, read with Rules 37-A and 37-C of the Karnataka Planning Authority Rules, 1965, are applicable only to development proposals concerning plots exceeding 20,000 square meters, and not to smaller plots. Importantly, it was also held that if a fee has been previously collected for change of land use or approval of layout plan, no further fee shall be levied for subsequent development plans, in view of the explanatory 'Note' to Table I of Rule 37-A.
The Court declared illegal the linkage of such levies to market or guidance value under Section 45-B of the Karnataka Stamp Act, and consequently, quashed all Circulars and demand notices issued to give effect to such HC-KAR NC: 2025:KHC:21505 unlawful interpretations. Clause 3.8 of the BBMP Building Bye-laws, 2003, imposing 'Ground Rent', was also struck down.
In view of these comprehensive declarations and findings, it is submitted that the controversy raised in the present writ petition no longer survives for adjudication independently, as it is squarely covered by the binding judgment of the co-ordinate bench. In the light of the law laid down in the reported judgment substantially covering the issue, which is raised in the captioned writ petition, the writ petition is liable to be allowed strictly aligning to the operative portion of the said writ petition.
In view of the above, this Court proceeds to pass the following; ORDER (i) The writ petition is allowed. (ii) The impugned demand notice dated 12.06.2025 issued by respondent No.4 as per Annexure-C is hereby set-aside. HC-KAR NC: 2025:KHC:21505 (iii) Respondent Nos.3 and 4 are hereby directed to issue fresh/modified plan as the case may be. (iv) Respondent Nos.3 and 4 are hereby 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 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 subjected to the outcome of any appeal that may be filed by the BBMP against the judgment. Pending applications, if any, are also disposed off. (SACHIN SHANKAR MAGADUM) JUDGE
ALB List No.: 1 Sl No.: 63
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.