M/S Midas Developers Vs State of Karnataka

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NC: 2025:KHC:21110 WP No. 14120 of 2020

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HC-KAR

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 17^TH DAY OF JUNE, 2025

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BEFORE

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THE HON'BLE MR JUSTICE SACHIN SHANKAR MAGADUM WRIT PETITION NO. 14120 OF 2020 (LB-BMP)

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BETWEEN:

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M/S. MIDAS DEVELOPERS A REGISTERED PARTNERSHIP FIRM HAVING ITS REGISTERED OFFICE AT GROUND FLOOR, GLOBAL TECH PARK, NO.11, O SHAUGHNESSY ROAD LANGFORD TOWN BANGALORE - 560 025 BY ITS PARTNER SRI. SATISH P CHANDRA

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…PETITIONER

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(BY SRI. VIVEKANANDA T.P, ADVOCATE)

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AND:

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Digitally signed by MOUNESHWARAPPA NAGARATHNA Location: High Court of Karnataka

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STATE OF KARNATAKA REPRESENTED BY ITS SECRETARY URBAN DEVELOPMENT DEPARTMENT 4^TH FLOOR, VIKASA SOUDHA DR AMBEDKAR VEEDHI BANGALORE - 560 001

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STATE OF KARNATAKA DEPARTMENT OF LABOUR VIKASA SOUDHA, BANGALORE-560 001 REPRESENTED BY ITS SECRETARY

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THE BRUHAT BANGALORE MAHANAGARA PALIKE N.R.SQUARE, BANGALORE - 560 002 REPRESENTED BY ITS COMMISSIONER

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NC: 2025:KHC:21110 WP No. 14120 of 2020

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HC-KAR

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THE JOINT DIRECTOR TOWN PLANNING (NORTH) BRUHAT BANGALORE MAHANAGARA PALIKE N.R.SQUARE, BANGALORE - 560 002.

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…RESPONDENTS

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(BY SMT. SPOORTHY T.P, HCGP FOR R & R2; SMT. SINCHANA M.R, ADVOCATE FOR R3 & R4)

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THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF CONSTITUTION OF INDIA, PRAYING TO ISSUE DIRECTION TO QUASH THE DEMAND NOTICE NO.1 DATED NIL SIGNED ON 12.11.2020 AT ANNEXURE-D ISSUED BY THE R-4 IN SO FAR AS THE DEMAND OF RS.16,71,618/- TOWARDS SCRUTINY FEE, RS.3,34,32,366/- TOWARDS LICENSE FEE, RS.3,09,96,579/TOWARDS GROUND RENT AND GST, RS.27,69,047/- TOWARDS BETTERMENT FEE FOR BUILDING, RS.3,78,00,156/- TOWARDS BETTERMENT FEE ON SITE AREA, RS.27,69,047/- TOWARDS SECURITY DEPOSIT, RS.41,49,000/- TOWARDS LABOUR CESS SURCHARGE OF RS.47,88,020/- TOWARDS WATER SUPPLY SCHEME (BWSSB), RS.47,88,020/- TOWARDS RING ROAD (BDA), RS.23,94,010/- TOWARDS IMPROVING SLUMS (KSCB), RS.1,19,70,049/- TOWARDS MASS RAPID TRANSPORT SYSTEM (BDA) ARE CONCERNED AND DECLARE THAT BYE-LAW NO.3.9 IN THE BANGALORE MAHANAGARA PALIKE BUILDING BYELAWS, 2003 AS UNCONSTITUTIONAL, ARBITRARY, ILLEGAL AND ULTRAVIRES AND ETC.

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THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN 'B' GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

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NC: 2025:KHC:21110 WP No. 14120 of 2020

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HC-KAR

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CORAM: HON'BLE MR JUSTICE SACHIN SHANKAR MAGADUM

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ORAL ORDER

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The captioned petition is filed seeking the following

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reliefs:

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i) Issue a writ of certiorari or similar writ or order or direction to quash the demand notice No.1 dated nil signed on 12.11.2020 at Annexure-D issued by the respondent No.4 only in so far as the demand of Rs. 16,71,618/towards scrutiny Fee, Rs.3,34,32,366/towards License Fee, Rs.3,09,96,579/- towards the ground rent & GST, Rs.27,69,047/towards Betterment fee for building, Rs.3,78,00,156/- towards betterment fee on site area, Rs.27,69,047/- towards security deposit, Rs.41,49,000/-towards Labour cess, surcharge of Rs.47,88,020/- towards water supply scheme (BWSSB), Rs.47,88,020/- towards Ring Road(BDA), Rs.23,94,010/- towards improving slums (KSCB), Rs. 1,19,70,049/- towards Mass Rapid Transport System(BDA), are concerned;

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ii) Issue a writ of Mandamus or any other appropriate writ of order or direction declaring that Bye-law No.3.9 in the Bangalore Mahanagara Palike Building Bye-laws, 2003 as unconstitutional, arbitrary, illegal and ultravires;

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iii) Issue Writ of Certiorari quashing the Government Order issued by the 2nd Respondent bearing G.O.No.LD 300 LET 2006 dated 18.01.2007 and the corrigendum bearing No. LD 300 LET 2006 dated 28.02.2007 directing upfront collection of labour welfare cess, as contained in ANNEXURE - E.

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iv) 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

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NC: 2025:KHC:21110 WP No. 14120 of 2020

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HC-KAR

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2004 by the 1™ Respondent at Annexure-G in so far as 18-A(i) and (iv) of Karnataka Act No.23 of 2004 is concerned.

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v) Grant an order, direction or writ in the nature of Certiorari quashing the Notification issued by the 1st Respondent bearing No. UDD 3 TPP 2015dated 25.02.2020 as contained in ANNEXURE-H in so far as the amended Rule 37-A and Rule 37-C are concerned;

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vi) Issue writ of mandamus or similar writ or order or direction directing the respondent Nos. 3 and 4 to issue building plan and license pursuant to the demand notice No.1 dated nil signed on 12.11.2020 at Annexure -D respondent No.4 without insisting for payment of aforesaid demands. issued by the

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vii) Issue any other appropriate writ or order or direction as deemed fit in the circumstances of the case, in the interest of justice and equity.

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The Co-ordinate Benches of this Court, in

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W.P.No.23086/2022 and connected matters(herein

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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.

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In Sunderam Shetty and connected cases, the Coordinate Bench declared the levies of Ground Rent, License Fee, Building License Fee, and Scrutiny Fee under the

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NC: 2025:KHC:21110 WP No. 14120 of 2020

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HC-KAR

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relevant bye-laws as ultra vires the Act and quashed the Government Circulars dated 04.09.2015, 27.01.2017, and 30.03.2017. and

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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.

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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.

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