Sri.K.N Padmanabha Reddy vs. The State Of Karnataka
Original PDF →Facts
The petitioners, including trusts and private developers, filed multiple writ petitions challenging the Karnataka Municipal Corporations and Certain Other Law (Amendment) Act, 2021 (Karnataka Act No. 01 of 2022), notified on January 13, 2022. They sought to declare this amendment, along with related rules and circulars, as ultra vires the Constitution. The core of their challenge pertained to the levy of fees for change of land use, approval of layout plans, and development plans, particularly when linked to market or guidance values. The petitioners argued that these levies were arbitrary and illegal. The respondents included the State of Karnataka and the Bruhat Bengaluru Mahanagara Palike (BBMP).
Held
The Court allowed the writ petitions, finding that the core issues were substantially covered by an authoritative pronouncement of a coordinate bench. The Court declared the Karnataka Municipal Corporations and Certain Other Law (Amendment) Acts of 2021 and 2023 (Karnataka Act Nos. 01 of 2022 and 37 of 2024) to be ultra vires. It was held 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, were applicable only to development proposals concerning plots exceeding 20,000 square meters, not smaller plots. The Court also declared that if a fee was previously collected for a change of land use or approval of a layout plan, no further fee should be levied for subsequent development plans, referencing the 'Note' to Table I of Rule 37-A. The linkage of levies to market or guidance value under Section 45-B of the Karnataka Stamp Act was declared illegal. Consequently, all impugned circulars and demand notices were quashed. Clause 3.8 of the BBMP Building Bye-laws, 2003, concerning 'Ground Rent', was also struck down. The BBMP was advised to consider a 'One Time Settlement' scheme. The impugned demand notices were set aside, and respondents were directed to issue fresh/modified plans and process building license applications strictly in accordance with law, irrespective of any potential appeal by the BBMP.
Key Issues
1. Whether the Karnataka Municipal Corporations and Certain Other Law (Amendment) Act, 2021 (Karnataka Act No. 01 of 2022), and its consequential rules and circulars, are ultra vires the Constitution, specifically concerning the levy of fees for land use changes, layout plans, and development plans (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)? Petitioner's arguments: The petitioners contended that the impugned amendment and related provisions were unconstitutional. They argued that the linking of fees to market or guidance values under Section 45-B of the Karnataka Stamp Act, 1957, was illegal. They also argued that the levies were applied to plots smaller than 20,000 square meters, contrary to the intended scope, and that fees were collected multiple times for the same development. They relied on a coordinate bench's pronouncement that had partly allowed similar writ petitions. Revenue/State's arguments: The judgment does not record specific arguments from the revenue or state respondents beyond their role as parties to the litigation. However, their participation implies a defense of the impugned legislation and actions.
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
Heard together (6 matters)
Read from the judgment's own cause title. This page is filed under one of them.
Cause title — parties, addresses and appearances
ORAL ORDER The petitioner in W.P.No.1570/2025 is seeking for the following reliefs;
"i) Grant an order declaring that the entire Karnataka Municipal Corporations and Certain Other Law (Amendment)
13/01/2022 (Annexure-R) as being ultra vires the constitution HC-KAR NC: 2025:KHC:20512 AND 3 OTHERS
in so far, petitioner is concerned in so far, the petitioner is concerned.
ii) To declare that Karnataka Municipal Corporations And Certain Other Law (Amendment) Act, 2021 (Karnataka Act violation/contrary to the decision of this Honble Court in W.P iii) 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 (Annexure-S) in so far, the Petitioner is concerned.
iv) Grant an order, direction or writ in the nature of certiorari quashing Section 18-A of the Karnataka Town and Country Planning Act, 1961 brought into effect by Karnataka (Amendment) Act, 1998) as contained in (Annexure-K) insofar as Section 18-A(i) and (iv) of the Karnataka Act No. 23 of 2004 is concerned.
v) 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-J) insofar as the inserted Rule 37-A and 37-C is concerned.
vi) Issue a writ or order by way of certiorari quashing the circular dated 14/08/2020, bearing No. He.Ni.Ka.Pa.Ko/ HC-KAR NC: 2025:KHC:20512 AND 3 OTHERS
P.R/320/2020-21 issued by the Respondent No.3 (Annexure-L) in so far the petitioner is concerned.
vii) 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-M) insofar as the inserted Rule 37-A and 37-C is concerned
viii) Issue a writ or order by way of certiorari quashing the circular dated 24/06/2021, bearing No. He.Ni.Na.Yo/P.R/320/2020-21 issued by the Respondent No.3 (Annexure-N) in so far the petitioner is concerned.
ix) To declare that the entire Bruhat Bengaluru Mahanagara Palike and Certain Other Law (Amendment) Act, 2023 notified on 16/08/2024 vide Notification bearing No.DPAL 36 Shasana 2023, Bengaluru issued by the Respondent No.2 (Annexure-T1) as being ultra vires the constitution of India.
x) Issue a writ or order by way of certiorari quashing the demand notice dated 27/11/2024, bearing No.BBMP/ Ad.COM/WST/0613/24-25, issued by the respondent No.4 (Annexure-D) 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 for site, security deposit, Lake Rejuvenation fee, cess for water supply scheme, surcharge for formation outer ring road, cess for improvement of slum, labour cess and etc., as illegal, without juri iction and arbitrary. HC-KAR NC: 2025:KHC:20512 AND 3 OTHERS
xi) Issue a writ or order or direction by way of mandamus directing the Respondent No.3 and 4 BBMP to issue the sanction plan for construction of the building in the Schedule Property without insisting the Ground rent, GST on Ground rent, License fee, scrutiny fee, Betterment charges for building, Betterment charges for site security deposit, 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
xii) 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 petitioner in W.P.No.4118/2025 is seeking for the following reliefs;
"i) Grant an order declaring that the entire Karnataka Municipal Corporations and Certain Other Law (Amendment)
13/01/2022 (Annexure-R) as being ultra vires the constitution in so far, petitioner is concerned in so far, the petitioner is concerned.
ii) To declare that Karnataka Municipal Corporations And Certain Other Law (Amendment) Act, 2021 (Karnataka Act - 13 -
HC-KAR NC: 2025:KHC:20512 AND 3 OTHERS
violation/contrary to the decision of this Honble Court in W.P iii) 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 (Annexure-S) in so far, the Petitioner is concerned.
iv) Grant an order, direction or writ in the nature of certiorari quashing Section 18-A of the Karnataka Town and Country Planning Act, 1961 brought into effect by Karnataka (Amendment) Act, 1998) as contained in (Annexure-K) insofar as Section 18-A(i) and (iv) of the Karnataka Act No. 23 of 2004 is concerned.
v) 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-J) insofar as the inserted Rule 37-A and 37-C is concerned.
vi) 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.3 (Annexure-L) in so far the petitioner is concerned.
vii) 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 HC-KAR NC: 2025:KHC:20512 AND 3 OTHERS
21/06/2021 as contained in (Annexure-M) insofar as the inserted Rule 37-A and 37-C is concerned
viii) Issue a writ or order by way of certiorari quashing the circular dated 24/06/2021, bearing No. He.Ni.Na.Yo/P.R/320/2020-21 issued by the Respondent No.3 (Annexure-N) in so far the petitioner is concerned.
ix) To declare that the entire Bruhat Bengaluru Mahanagara Palike and Certain Other Law (Amendment) Act, 2023 notified on 16/08/2024 vide Notification bearing No.DPAL 36 Shasana 2023, Bengaluru issued by the Respondent No.2 (Annexure-T1) as being ultra vires the constitution of India.
x) Issue a writ or order by way of certiorari quashing the demand notice dated 06/02/2025, bearing No.BBMP/ Addl.Dir/JDNORTH/0038/24-25, issued by the respondent No.4 (Annexure-D) 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 for site, security deposit, Lake Rejuvenation fee, cess for water supply scheme, surcharge for formation outer ring road, cess for improvement of slum, labour cess and etc., as illegal, without juri iction and arbitrary.
xi) Issue a writ or order or direction by way of mandamus directing the Respondent No.3 and 4 BBMP to issue the sanction plan for construction of the building in the Schedule Property without insisting the Ground rent, GST on Ground rent, License fee, scrutiny fee, Betterment charges for HC-KAR NC: 2025:KHC:20512 AND 3 OTHERS
building, Betterment charges for site security deposit, 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
xii) 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 petitioners in W.P.No.4238/2025 are seeking for the following reliefs;
"i) Grant an order declaring that the entire Karnataka Municipal Corporations and Certain Other Law (Amendment)
13/01/2022 (Annexure-R) as being ultra vires the constitution in so far, the petitioners are concerned in so far, the petitioners are concerned.
ii) To declare that Karnataka Municipal Corporations And Certain Other Law (Amendment) Act, 2021 (Karnataka Act violation/contrary to the decision of this Honble Court in W.P iii) 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 HC-KAR NC: 2025:KHC:20512 AND 3 OTHERS
Respondent No.3 as (Annexure-S) in so far, the Petitioners are concerned.
iv) Grant an order, direction or writ in the nature of certiorari quashing Section 18-A of the Karnataka Town and Country Planning Act, 1961 brought into effect by Karnataka (Amendment) Act, 1998) as contained in (Annexure-K) insofar as Section 18-A(i) and (iv) of the Karnataka Act No. 23 of 2004 is concerned.
v) 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-J) insofar as the inserted Rule 37-A and 37-C is concerned.
vi) 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.3 (Annexure-L) in so far the petitioners are concerned.
vii) 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-M) insofar as the inserted Rule 37-A and 37-C is concerned
viii) Issue a writ or order by way of certiorari quashing the circular dated 24/06/2021, bearing No. HC-KAR NC: 2025:KHC:20512 AND 3 OTHERS
He.Ni.Na.Yo/P.R/320/2020-21 issued by the Respondent No.3 (Annexure-N) in so far the petitioners are concerned.
ix) To declare that the entire Bruhat Bengaluru Mahanagara Palike and Certain Other Law (Amendment) Act, 2023 notified on 16/08/2024 vide Notification bearing No.DPAL 36 Shasana 2023, Bengaluru issued by the Respondent No.2 (Annexure-T1) as being ultra vires the constitution of India.
x) Issue a writ or order by way of certiorari quashing the demand notice dated 18/01/2025, bearing No.BBMP/ Ad.Com/EST/0084/24-25, issued by the respondent No.4 (Annexure-D) 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 for site, security deposit, Lake Rejuvenation fee, cess for water supply scheme, surcharge for formation outer ring road, cess for improvement of slum, labour cess and etc., as illegal, without juri iction and arbitrary.
xi) Issue a writ or order or direction by way of mandamus directing the Respondent No.3 and 4 BBMP to issue the sanction plan for construction of the building in the Schedule Property without insisting the Ground rent, GST on Ground rent, License fee, scrutiny fee, Betterment charges for building, Betterment charges for site security deposit, lake rejuvenation fee, cess for water supply scheme, surcharge for formation outer ring road, cess for improvement of slum HC-KAR NC: 2025:KHC:20512 AND 3 OTHERS
and surcharge for mass rapid transport system, labour cess and
xii) 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 petitioner in W.P.No.4787/2025 is seeking for the following reliefs;
"i) Grant an order declaring that the entire Karnataka Municipal Corporations and Certain Other Law (Amendment)
13/01/2022 (Annexure-R) as being ultra vires the constitution in so far, petitioner is concerned in so far, the petitioner is concerned.
ii) To declare that Karnataka Municipal Corporations And Certain Other Law (Amendment) Act, 2021 (Karnataka Act violation/contrary to the decision of this Honble Court in W.P iii) 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 (Annexure-S) in so far, the Petitioner is concerned. HC-KAR NC: 2025:KHC:20512 AND 3 OTHERS
iv) Grant an order, direction or writ in the nature of certiorari quashing Section 18-A of the Karnataka Town and Country Planning Act, 1961 brought into effect by Karnataka (Amendment) Act, 1998) as contained in (Annexure-K) insofar as Section 18-A(i) and (iv) of the Karnataka Act No. 23 of 2004 is concerned.
v) 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-J) insofar as the inserted Rule 37-A and 37-C is concerned.
vi) 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.3 (Annexure-L) in so far the petitioner is concerned.
vii) 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-M) insofar as the inserted Rule 37-A and 37-C is concerned
viii) Issue a writ or order by way of certiorari quashing the circular dated 24/06/2021, bearing No. He.Ni.Na.Yo/P.R/320/2020-21 issued by the Respondent No.3 (Annexure-N) in so far the petitioner is concerned. HC-KAR NC: 2025:KHC:20512 AND 3 OTHERS
ix) To declare that the entire Bruhat Bengaluru Mahanagara Palike and Certain Other Law (Amendment) Act, 2023 notified on 16/08/2024 vide Notification bearing No.DPAL 36 Shasana 2023, Bengaluru issued by the Respondent No.2 (Annexure-T1) as being ultra vires the constitution of India.
x) Issue a writ or order by way of certiorari quashing the demand notice dated 02/01/2025, bearing No.BBMP/ Ad.COM/EST/0617/24-25, issued by the respondent No.4 (Annexure-D) 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 for site, security deposit, Lake Rejuvenation fee, cess for water supply scheme, surcharge for formation outer ring road, cess for improvement of slum, labour cess and etc., as illegal, without juri iction and arbitrary.
xi) Issue a writ or order or direction by way of mandamus directing the Respondent No.3 and 4 BBMP to issue the sanction plan for construction of the building in the Schedule Property without insisting the Ground rent, GST on Ground rent, License fee, scrutiny fee, Betterment charges for building, Betterment charges for site security deposit, 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 HC-KAR NC: 2025:KHC:20512 AND 3 OTHERS
xii) 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 petitioners in W.P.No.5383/2024 are seeking for the following reliefs;
"i) Grant an order declaring that the entire Karnataka Municipal Corporations and Certain Other Law (Amendment)
13/01/2022 (Annexure-R) Bearing No.DPAL 50 SHASANA 2021 issued by Respondent No.2 as being ultra vires the constitution in so far, the petitioner is concerned in so far, the petitioner is concerned.
ii) To declare that Karnataka Municipal Corporations And Certain Other Law (Amendment) Act, 2021 (Karnataka Act No. 01 of 2022) notified on 13/01/2022 Bearing No.DPAL 50 SHASANA 2021 issued by Respondent No.2 (Annexure-R) is in violation/contrary to the decision of this Honble Court in iii) 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 (Annexure-S) in so far, the Petitioner is concerned.
iv) Grant an order, direction or writ in the nature of certiorari quashing Section 18-A of the Karnataka Town and HC-KAR NC: 2025:KHC:20512 AND 3 OTHERS
Country Planning Act, 1961 brought into effect by Karnataka (Amendment) Act, 1998) as contained in (Annexure-K) insofar as Section 18-A(i) and (iv) of the Karnataka Act No. 23 of 2004 is concerned.
v) 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-J) insofar as the inserted Rule 37-A and 37-C is concerned.
vi) 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.3 (Annexure-L) in so far the petitioner is concerned.
vii) 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-M) insofar as the inserted rule 37-A and 37-C is concerned
viii )Issue a writ or order by way of certiorari quashing the circular dated 24/06/2021, bearing no. He.Ni.Na.Yo/ P.R/320/2020-21 issued by the Respondent No.3 (Annexure- N) in so far the petitioner is concerned.
ix) To declare that the entire Bruhat Bengaluru Mahanagara Palike and Certain Other Law (Amendment) Act, 2023 notified on 16/08/2024 vide Notification bearing HC-KAR NC: 2025:KHC:20512 AND 3 OTHERS
No.DPAL 36 Shasana 2023, Bengaluru issued by the Respondent No.2 (Annexure-T1) as being ultra vires the constitution of india
x) Issue a writ or order by way of certiorari quashing the demand notice dated 04/02/2025, bearing No.BBMP/ Ad.Com/EST/0914/24-25, issued by the Respondent No.4 (Annexure-D) for demanding in so far it is concerned to Ground rent, GST an Ground rent, License fee, scrutiny fee, Bettermant charges for building, Betterment charges for site, security deposit, Lake Rejuvenation fee, cess for water supply scheme, surcharge for formation outer ring road, cess for improvement of slum, labour cess and etc., as illegal, without juri iction and arbitrary.
xi) Issue a writ or order or direction by way of mandamus directing the Respondent No.3 and 4 BBMP to issue the sanction plan for construction of the building in the Schedule Property without insisting the Ground rent, GST on Ground rent, License fee, scrutiny fee, Betterment charges for building, Betterment charges for site security deposit, 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
xii) 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." HC-KAR NC: 2025:KHC:20512 AND 3 OTHERS
The petitioner in W.P.No.6002/2025 is seeking for the following reliefs;
"i) Grant an order declaring that the entire Karnataka Municipal Corporations and Certain Other Law (Amendment)
13/01/2022 (Annexure-R) as being ultra vires the constitution in so far, petitioner is concerned in so far, the petitioner is concerned.
ii) To declare that Karnataka Municipal Corporations And Certain Other Law (Amendment) Act, 2021 (Karnataka Act violation/contrary to the decision of this Honble Court in iii) 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 (Annexure-S) in so far, the Petitioner is concerned.
iv) Grant an order, direction or writ in the nature of certiorari quashing Section 18-A of the Karnataka Town and Country Planning Act, 1961 brought into effect by Karnataka (Amendment) Act, 1998) as contained in (Annexure-K) insofar as Section 18-A(i) and (iv) of the Karnataka Act No. 23 of 2004 is concerned. HC-KAR NC: 2025:KHC:20512 AND 3 OTHERS
v) 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-J) insofar as the inserted Rule 37-A and 37-C is concerned.
vi) 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.3 (Annexure-L) in so far the petitioner is concerned.
vii) 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-M) insofar as the inserted Rule 37-A and 37-C is concerned
viii) Issue a writ or order by way of certiorari quashing the circular dated 24/06/2021, bearing No. He.Ni.Na.Yo/P.R/320/2020-21 issued by the Respondent No.3 (Annexure-N) in so far the petitioner is concerned.
ix) To declare that the entire Bruhat Bengaluru Mahanagara Palike and Certain Other Law (Amendment) Act, 2023 notified on 16/08/2024 vide Notification bearing No.DPAL 36 Shasana 2023, Bengaluru issued by the Respondent No.2 (Annexure-T1) as being ultra vires the constitution of India.
x) Issue a writ or order by way of certiorari quashing the demand notice dated Nil, bearing No.BBMP/ HC-KAR NC: 2025:KHC:20512 AND 3 OTHERS
Ad.COM/MDP/0780/24-25, issued by the respondent No.4 (Annexure-D) 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 for site, security deposit, Lake Rejuvenation fee, cess for water supply scheme, surcharge for formation outer ring road, cess for improvement of slum, labour cess and etc., as illegal, without juri iction and arbitrary.
xi) Issue a writ or order or direction by way of mandamus directing the Respondent No.3 and 4 BBMP to issue the sanction plan for construction of the building in the Schedule Property without insisting the Ground rent, GST on Ground rent, License fee, scrutiny fee, Betterment charges for building, Betterment charges for site security deposit, 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
xii) 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 HC-KAR NC: 2025:KHC:20512 AND 3 OTHERS
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. (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 HC-KAR NC: 2025:KHC:20512 AND 3 OTHERS
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 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 HC-KAR NC: 2025:KHC:20512 AND 3 OTHERS
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 petitions, 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 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. HC-KAR NC: 2025:KHC:20512 AND 3 OTHERS
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 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 coordinate bench. In the light of the law laid down in the reported judgment, substantially covering HC-KAR NC: 2025:KHC:20512 AND 3 OTHERS
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 petitions are allowed. (ii) The impugned demand notice dated 27.11.2024 issued by respondent No.4 as per Annexure-D is hereby set-aside in W.P.No.1570/2025. (iii) The impugned demand notice dated 06.02.2025 issued by respondent No.4 as per Annexure-D is hereby set-aside in W.P.No.4118/2025. (iv) The impugned demand notice dated 18.01.2025 issued by respondent No.4 as per Annexure-D is hereby set-aside in W.P.No.4238/2025. HC-KAR NC: 2025:KHC:20512 AND 3 OTHERS
(v) The impugned demand notice dated 02.01.2025 issued by respondent No.4 as per Annexure-D is hereby set-aside in W.P.No.4787/2025. (vi) The impugned demand notice dated 04.02.2025 issued by respondent No.4 as per Annexure-D is hereby set-aside in W.P.No.5383/2025. (vii) The impugned demand notice dated Nil issued by respondent No.4 as per Annexure-D is hereby set-aside in W.P.No.6002/2025. (viii) Respondent Nos.3 and 4 are hereby directed to issue fresh/modified plan as the case may be. (ix) Respondent Nos.3 and 4 are hereby directed to forthwith process the petitioners' application seeking building license and sanction of the building plan, strictly in accordance with law. (x) It is made clear that the issuance of the building license and approval plan shall not be withheld merely on the ground HC-KAR NC: 2025:KHC:20512 AND 3 OTHERS
that the BBMP is contemplating to file an appeal against the reported judgment. (xi) 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
NBM List No.: 2 Sl No.: 18
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.