Mr Raja Dattakumar vs. The State Of Karnataka
Original PDF →No AI summary yet for this judgment.
Cause title — parties, addresses and appearances
ORAL ORDER This petition is filed seeking the following reliefs:- “i. Issue a writ of certiorari or similar writ or order or direction to quash the Karnataka Municipal Corporations and Certain other law (Amendment) Act, 2021, Karnataka Act No. 1/2022 enacted by the second respondent HC-KAR NC: 2025:KHC:23237 published through Gazette notification bearing No. DPAL 50SHASANA 2021, Bengaluru Dated 13/01/2022 at ANNEXURE-D declaring it to be ultravires and unconstitutional in so for petitioner is conserved.
ii. Issue a writ of certiorari to quash the demand notice Dated NIL bearing No. LP. No. BBMP/Addl.Dir/JDSOUTH/0053/21-22 Vide ANNEXURE-B issued by the respondent No.4 in so far as demand towards.
Fee payable to BBMP.
Sl.No. Details of fees Amount (Rs)
Scrutiny fee 00,81,831.00
Ground Rent (including 9% CGST and 9% SGST) 09,65,601.00
Licence fee 16,36,611.00
Fee U/s 18 of KTCP act (Betterment Levy) for building 03,63,691.00
Fee U/s 18 of KTCP act (Betterment Levy) for site area 06,36,527.00
Security deposit 18,18,457.00
Lake Rejuvenation fee 02,22,562.00
Compound wall fee 00,05,000.00
Road cutting fee 00,00,000.00 10. 1% of Labour amount to BBMP cess 00,33,630.00
Levy and collection of cess and surcharges as per Rule 37-c of KPSA(Amendment) HC-KAR NC: 2025:KHC:23237 Rules 2019 as per sub clauses (i), (ii), (iii), and (iv) of sub section(1) of section 18- A of KTCP Act 1961
(a) Water supply cess 00,95,021.00
(b) Ring Road surcharge 00,95,021.00
(c) Cess for Improvement of slums 00,47,510.00
(d) MRTS Surcharge 04,75,104.00 12. 5% of administrative charges to BBMP on cess and surcharge 00,37,509.00
Total Rs 65,14,075.00
Previously paid amt 00,57,895.00
Total amount to be paid Rs 64,56,180.00
(Sixty-Four Lakhs Fifty-Six Thousand One Hundred Eighty) to be paid to BBMP are concerned And Labour cess total amount Rs.33,29,370.00/- (Thirty-Three Lakhs Twenty-Nine Thousand Three Hundred Seventy).
iii. Issue any other appropriate writ or order or direction to the respondent's demand fit in the circumstances of the case in the interest of justice and equity.
iv. Pass any such other orders 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:23237
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. (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 HC-KAR NC: 2025:KHC:23237 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 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, HC-KAR NC: 2025:KHC:23237 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 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 HC-KAR NC: 2025:KHC:23237 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 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 HC-KAR NC: 2025:KHC:23237 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 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 Nil issued by respondent No.4 as per Annexure-B is hereby set-aside. (iii) Respondent Nos.3 and 4 - BBMP are hereby directed to issue fresh/modified sanction plan as the case may be. (iv) Respondent Nos.3 and 4 - BBMP are hereby directed to forthwith process the petitioner's application seeking building HC-KAR NC: 2025:KHC:23237 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
NBM List No.: 2 Sl No.: 45
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.