Sri C Ramachandraiah vs. State Of Karnataka

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WP/2565/2023HC KarnatakaGSTCNR KAHC01006095202325 June 2025Bench: SACHIN SHANKAR MAGADUM11 pages
For Petitioner: SRI YASHAVANTHSWAMY A.M., ADVOCATEFor Respondent: SRI BOPANNA B., AGA FOR R-1 AND R-2; SRI B.L. SANJEEV, ADVOCATE FOR R-3 AND R-4

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Cause title — parties, addresses and appearances
- 1 - HC-KAR NC: 2025:KHC:24123 WP No. 2565 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 25TH DAY OF JUNE, 2025 BEFORE THE HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM WRIT PETITION NO.2565 OF 2023 (LB-BMP) BETWEEN: 1. SRI C. RAMACHANDRAIAH S/O. NARASAIAH CHANNAMASETTY AGED ABOUT 71 YEARS. 2. SMT. SIDDESHWARI W/O. C. RAMACHANDRAIAH AGED ABOUT 59 YEARS. 3. SRI C. RAMAKISHORE S/O C. RAMACHANDRAIAH AGED ABOUT 41 YEARS. 4. SRI C. RAMAPRADEEP S/O. C. RAMACHANDRAIAH AGED ABOUT 35 YEARS ALL ARE RESIDING AT NO.282, 83 AND 84 2ND CROSS, TELECOM LAYOUT ASHWATHNAGAR, THANISANDRA BENGALURU-560 043 REPRESENTED BY ITS GPA HOLDER M/S. AXIS INFINITY REPRESENTED BY ITS MANAGING PARTNER SRI HARISH BABU S/O. LATE RAMARAJU AGED ABOUT 45 YEARS HAVING OFFICE NO.555 AXIS PADEGAL, 4TH FLOOR J.P. NAGAR, III PHASE Digitally signed by CHAITHRA P Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:24123 WP No. 2565 of 2023 9TH CROSS, NEAR SONY CENTER BENGALURU-560 078 REGISTERED PARTNERSHIP FIRM REGISTERED AS PER THE INDIAN PARTNERSHIP ACT 1832 REG.NO.JNR-F671-2017-18. …PETITIONERS (BY SRI YASHAVANTHSWAMY A.M., ADVOCATE) AND: 1. STATE OF KARNATAKA THE URBAN DEVELOPMENT DEPARTMENT 4TH FLOOR, VIKASA SOUDHA DR. AMBEDKAR VEEDHI BENGALURU-560 001 REPRESENTED BY ITS SECRETARY. 2. THE STATE OF KARNATAKA DEPARTMENT OF PARLIAMENTARY AFFAIRS AND LEGISLATION VIKASA SOUDHA DR. B.R. AMBEDKAR VEEDHI BENGALURU-560 001 REPRESENTED BY ITS SECRETARY. 3. BRUHAT BENGALURU MAHANAGARA PALIKE N.R. SQUARE BENGALURU-560 002 REPRESENTED BY ITS COMMISSIONER. 4. THE ASSISTANT DIRECTOR OF TOWN PLANNING- YELAHANKA, ROOM NO.5 BRUHAT BENGALURU MAHANAGARA PALIKE AMRUTHALLI MAIN ROAD BYTARAYANPURA, BELLARY ROAD BENGALURU-560 092. …RESPONDENTS (BY SRI BOPANNA B., AGA FOR R-1 AND R-2; SRI B.L. SANJEEV, ADVOCATE FOR R-3 AND R-4) - 3 - HC-KAR NC: 2025:KHC:24123 WP No. 2565 of 2023 THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE KARNATAKA MUNICIPAL CORPORATIONS AND CERTAIN OTHER LAW(AMENDMENT) ACT 2021 ACT NO.1 OF 2022 DATED 13-1-2022 ENACTED BY THE RESPONDENT NO.2 PUBLISHED THROUGH NOTIFICATION BEARING NO.DPAL 50 SHASANA 2021 GAZETTE ON 13-1-2022 AT ANNEXURE-G DECLARING IT TO BE ULTRAVIRES AND UNCONSTITUTIONAL AND ETC. THIS WRIT 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

Caption 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 act No.1/2022 dated 13/01/2022 enacted by the second respondent published through notification bearing No. DPAL 50 SHASANA 2021 gazette on 13/01/2022 at ANNEXURE-G declaring it to be ultravires and unconstitutional. HC-KAR NC: 2025:KHC:24123 ii) Issue writ of certiorari or similar writ or order or direction to quash the office order bearing No. ADTP/PR/461/2021-22 dated 09/03/2022 issued by the third respondent at ANNEXURE-Н. iii) Issue a writ of certiorari to quash the demand note/L.P.No.BBMP/Ad.Com/YLK/1167/22-23 and project No.PRJ/11809/22-23 dated 21/01/2023 at ANNEXURE-D issued by the respondent No.4 in so far as demand towards Scrutiny fee 52,127/- license fee 10,42,540/- fee U/s 18(1) of KTCP Act Betterment levy for building fee 4,24,658/- fee U/s 18(1) of KTСР act Betterment levy for site 7,77,287/- Security deposit fee 4,24,658/-, Lake Rejuvenation Cess 44,325/- Administrative charges , 7,720/-, Ground rent (including CGST and SGST) 9,66,583/-, Compound wall charges 1,660/-, Water supply scheme (BWSSB) 1,14,186/-, Ring road (BDA) 1,14,186/-, Improving Slums (KSCB) 57,093/-, Mass Rapid Transport System(BDA) 5,70,924/-, Levy and Collection of 5% surcharge to be paid to BBMP 45,068/- are concerned. And Labour cess amount Rs.7,64,280/-. iv) Issue writ of Certiorari or similar writ, order or direction to quash the Circular bearing HC-KAR NC: 2025:KHC:24123 No.He.Ni.Ka.Pa.Ko/320/2020-21 dated 14/08/2020 at ANNEXURE-J issued by the 3rd Respondent. v) Issue a writ of Certiorari or similar writ or order or direction to quash provisions of section 18-A of Karnataka Town and Country Planning act, 1961 brought into effect by Karnataka act No.23 of 2004 by the 1st respondent at ANNEXURE-K in so far as 18-A (i) and) (iv) of Karnataka act No.23 of 2004 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 3TTP 2015 dated 25/2/2020 as contained in ANNEXURE-L in so far as the amended Rule 37-A and rule 37-C are concerned, vii) Issue any other appropriate writ or order or direction to the respondents demand fit in the circumstances of the case in the interest of justice and equity. vi) Pass any such other orders as this Hon'ble court deems fit in the facts and circumstances of the case in the interest justice and equity."

2.

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 HC-KAR NC: 2025:KHC:24123 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 Country Planning Act, 1961, read with Rules 37-A and 37-C of the Karnataka Planning Authority Rules, 1965, are applicable only in HC-KAR NC: 2025:KHC:24123 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, providing for ‘Ground Rent’, is illegal and are accordingly quashed and set aside. HC-KAR NC: 2025:KHC:24123 (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."

3.

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).

4.

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 HC-KAR NC: 2025:KHC:24123 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.

5.

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.

6.

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 HC-KAR NC: 2025:KHC:24123 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.

7.

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 21.01.2023 issued by respondent No.4 as per Annexure-D is hereby set-aside. (iii) Respondent- BBMP hereby directed to issue fresh/modified plan as the case may be. (iv) Respondent- BBMP is hereby directed to forthwith process the petitioner's application seeking building license and sanction of the building plan, strictly in accordance with law. HC-KAR NC: 2025:KHC:24123 (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.

8.

Pending applications, if any, are also disposed off. (SACHIN SHANKAR MAGADUM) JUDGE

NG List No.: 2 Sl No.: 22

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.