Sri. H N Satish vs. The State Of Karnataka

WP/13653/2020HC KarnatakaGSTCNR KAHC01035021202016 June 2025Bench: SACHIN SHANKAR MAGADUM8 pages

For Petitioner: SRI. B PRAMOD, ADVOCATEFor Respondent: SMT. SPOORTHY V, HCGP FOR R1-R3 SMT.SINCHANA M R., ADVOCATE FOR R4 AND R5

AI SummaryAllowed

Facts

The petitioners, including Sri. H N Satish, Sri. H.P Bheema Raj, and M/s Spring Seas BDK Developers, filed a writ petition challenging various provisions of the Karnataka Town and Country Planning Act, 1961, as amended, and related notifications and circulars. Specifically, they sought to quash Section 18-A(i) and (iv) of the Karnataka Act No.23 of 2004, Rule 37-A and 37-C inserted by a notification dated 25.02.2020, circulars dated 04.09.2015 and 14.08.2020, a government order dated 18.01.2007 and its corrigendum dated 28.02.2007 concerning labour welfare cess, and a demand notice dated 12.10.2020 issued by the Bruath Bangalore Mahanagara Palike (BBMP). The demand notice included levies such as Ground Rent, GST on Ground Rent, Betterment charges, revised license and scrutiny fees, and various cesses and surcharges.

Held

The Court held that the issues raised in the present writ petition are squarely covered by the binding decisions of 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 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 to market/guidance value, and related circulars and Clause 3.8 of the BBMP Building Bye-laws, 2003, pertaining to Ground Rent, were declared invalid. Consequently, the present petition did not warrant separate adjudication and was liable to be allowed in terms of the operative directions in the aforesaid writ petitions. The impugned demand notice dated 12.10.2020 was set aside, and respondents 4 and 5 were directed to issue modified/fresh sanction plans and process applications for building licenses and occupancy certificates strictly in accordance with law. The issuance of licenses and plans would not be withheld due to BBMP contemplating an appeal, but 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 inserted by the notification dated 25.02.2020 are illegal. 3. Whether the circulars dated 04.09.2015 and 14.08.2020 issued by the BBMP are arbitrary and illegal. 4. Whether the government order dated 18.01.2007 and its corrigendum dated 28.02.2007 mandating upfront collection of labour welfare cess are illegal. 5. Whether the demand notice dated 12.10.2020 issued by the BBMP for various charges including Ground Rent, GST on Ground Rent, Betterment charges, and other cesses and surcharges is illegal, without jurisdiction, and arbitrary. Petitioners' Arguments: The petitioners argued that the impugned provisions, notifications, circulars, and demand notice are illegal, without jurisdiction, and arbitrary. They sought to quash these actions. Respondents' Arguments: The judgment does not record specific arguments from the respondents. However, it notes that the issues are covered by previous binding decisions.

Sections Cited

Section 18-A, Rule 37-A, Rule 37-C

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

- 1 - HC-KAR NC: 2025:KHC:20509 WP No. 13653 of 2020 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 16TH DAY OF JUNE, 2025 BEFORE THE HON'BLE MR JUSTICE SACHIN SHANKAR MAGADUM WRIT PETITION NO.13653 OF 2020 (LB-BMP) BETWEEN: 1. SRI. H N SATISH S/O H B NAGARAJA AGED ABOUT 43 YEARS RESIDING AT VINAYANAGAR HAGADUR VILLAGE K R PURAM HOBLI BENGALURU - 560 066 2. SRI.H.P BHEEMA RAJ S/O PATEL PILLANNA AGED ABOUT 67 YEARS RESIDING AT AJJAGONDANAHALLI VILLAGE ANUGONDANAHALLI HOBLI HOSKOTE TALUK BANGALORE RURAL DISTRICT PETITIONER NOS.1 AND 2 REPRESENTED BY THEIR GPA HOLDER M/S SPRING SEAS BDK DEVELOPERS BY ITS PARTNER MRS.LAVANYA NESANOOR W/O NOWRAJA NESANOOR AGED ABOUT 41 YEARS 3. M/S SPRING SEAS BDK DEVELOPERS A PARTNERSHIP FIRM HAVING ITS OFFICE AT NO.S-13 SILVER SPRING LAYOUT SPACE GARDEN COMPOUND HAL - VARTHUR MAIN ROAD MARATHAHALLI BENGALURU - 560 037 Digitally signed by NAGARAJA B M Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:20509 WP No. 13653 of 2020 REPRESENTED BY ITS PARTNER MRS. LAVANYA NESANOOR W/O NOWRAJA NESANOOR AGED ABOUT 41 YEARS …PETITIONERS (BY SRI. B PRAMOD, ADVOCATE) AND: 1. THE STATE OF KARNATAKA THE URBAN DEVELOPMENT DEPARTMENT VIKASA SOUDHA DR B.R.AMBEDKAR VEEDHI BANGALORE 560 001 REPRESENTED BY ITS SECRETARY 2. THE STATE OF KARNATAKA THE LABOUR DEPARTMENT VIKASA SOUDHA DR B R AMBEDKAR VEEDHI BANGALORE 560001 REPRESENTED BY ITS UNDER SECRETARY 3. THE STATE OF KARNATAKA DEPARTMENT OF PARLIAMENTARY AFFAIRS AND LEGISLATION VIKASA SOUDHA DR B R AMBEDKAR VEEDHI BANGALORE 560001 REPRESENTED BY ITS UNDER SECRETARY 4. BRUATH BANGALORE MAHANAGAR PALIKE N R SQUARE BANGALORE - 560002 REPRESENTED BY ITS COMMISSIONER 5. THE ASSISTANT DIRECTOR TOWN PLANNING (MAHADEVAPURA) MAHADEVAPURA DIVISION BRUATH BANGALORE MAHANAGARA PALIKE RHB COLONY - 3 - HC-KAR NC: 2025:KHC:20509 WP No. 13653 of 2020 WHITEFIELD MAIN ROAD BANGALORE - 560 048 …RESPONDENTS (BY SMT. SPOORTHY V, HCGP FOR R1-R3 SMT.SINCHANA M R., ADVOCATE FOR R4 AND R5.) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH SECTION 18-A OF THE KARNATAKA TOWN AND COUNTRY PLANING ACT 1961 BROUGHT INTO EFFECT BY KARNATAKA ACT NO.23 OF 2004 (KARNATAKA TOWN AND COUNTRY PLANNING (AMENDMENT) ACT 1998 AS CONTAINED IN ANNXURE-H1 IN SO FAR SECTION 18-A(i) AND (iv) OF THE KARNATAKA ACT NO.23 OF 2004 IS CONCERNED AND ETC. THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN 'B' GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE SACHIN SHANKAR MAGADUM

ORAL ORDER The petitioners are seeking for the following reliefs.

"i) 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 Act no.23 of 2004 (Karnataka Town And Country Planning (Amendment) Act 1998 as contained in Annxure-H1 in so far Section 18-A(i) and (iv) of the Karnataka Act no.23 of 2004 is concerned. HC-KAR NC: 2025:KHC:20509 ii) Quash the Notification issued by the respondent No.1 bearing No.UDD 3 TTP 2015 dated 25.2.2020 as contained in Annexure-H insofar as the inserted Rule 37-A and 37-C is concerned.

iii) Quash the circular dated 4.9.2015, bearing No. Heninayo/JD(N)/DM3/PR/320/2015-16 issued by the respondent No.4 (Annexure-F) in so far the petitioner are concerned.

iv) Quash the circular dated 14.8.2020, bearing No. He. Ni.Ka.Pa.Ko/P.R/320/2020-21 issued by the R-4 Annexure-J in so far the petitioners are concerned.

v) Quash the government order bearing No.LD/300/ LET/2006 dated18.1.2007 and the corrigendum order bearing No.LD/300/LET/2006, dated 28.2.2007 issued by the R-2 mandating upfront collection of labour welfare cess Annexure-G in so far the petitioner is concerned.

vi) quash the demand notice dated.12.10.2020, bearing LP No. BBMP/Ad.Com/MDP/219/2020-21, issued by the R-5 Annexure-E for demanding in so far it is concerned to 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 as illegal without juri iction and arbitrary. HC-KAR NC: 2025:KHC:20509 vii) Direct the R-4 and 5 BBMP to issue the modified 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, 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."

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. HC-KAR NC: 2025:KHC:20509

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.

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. HC-KAR NC: 2025:KHC:20509

Accordingly, this Court proceeds to pass the following: ORDER

(i) The writ petition is allowed. (ii) The impugned demand notice dated 12.10.2020 issued by respondent No.5 as per Annexure-E is hereby set-aside. (iii) Respondent Nos.4 and 5 are hereby directed to issue modified/fresh sanction plan as the case may be. (iv) Respondent Nos.4 and 5 are hereby directed to forthwith process the petitioners' applications seeking building license and sanction of the building plan/occupancy certificate, 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 HC-KAR NC: 2025:KHC:20509 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.: 5

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.