M/S Amrutha Rama Constructions Pvt. Ltd. Vs State of Karnataka

M/S AMRUTHA RAMA CONSTRUCTIONS PVT LTD., A REGISTERED COMPANY HAVING ITS OFFICE AT FLAT NO. 309, AMRUTHA SPARKLING NEST SY. NO. 83/2, GARUDACHARPALYA MAHADEVAPURA BANGLAORE 560 048 BY ITS PARTNER SRI. B. MADHUSUDHAN RAO.

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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 SOUDAH DR. AMBEDKAR VEEDHI, BANGALORE - 560 001.

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STATE OF KARNATAKA DEPARTMENT OF LABOUR VIKASA SOUDHA BANGLAORE - 560 001 REPRESENTED BY ITS SECRETARY.

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

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NC: 2025:KHC:20833 WP No. 3719 of 2021

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HC-KAR

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

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…RESPONDENTS

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(BY SMT. SPOORTHY V., HCGP FOR R1 & R2; SRI. PAWAN KUMAR.,ADVOCATE FOR R3)

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THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE DEMAND NOTICE DATED 20.01.2021 AT ANNEXURE-D ISSUED BY THE R-4 ONLY IN SO FAR AS THE DEMAND OF RS.25,08,147/- TOWARDS GROUND RENT, RS.4,51,467/TOWARDS GST, RS.2,50,815/- TOWARDS SCRUTINY FEE, RS.22,98,335/TOWARDS LICENSE FEE, RS.5,10,741/TOWARDS BETTERMENT FEE FOR BUILDING RS 25,53,705/TOWARDS SECURITY DEPOSTI, SURCHARGE OF RS.7,82,882/TOWARDS WATER SUPPLY SCHEME (BWSSB), RS.7,82,882/TOWARDS RING ROAD (BDA) RS.3,91,441/TOWARDS IMPROVING SLUMS (KSCB), RS.19,57,204/- TOWARDS MASS RAPID TRANSPORT SYSTEM (BDA), LEVY AND COLLECTION OF 5 PERCENT CESS ON SURCHARGE, 1 PERCENT ADMINISTRATIVE CHARGES ON LABOUR CESS AND LABOUR CESS OF RS.41,21,000/- ARE CONCERNED AND ETC.

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THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

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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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NC: 2025:KHC:20833 WP No. 3719 of 2021

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HC-KAR

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"(i) Issue a writ of certiorari or similar writ or order or direction to quash the demand notice No.BBMP/ Addl.Dir/JDCENTRAL/LP/0012/2019-20 dated 20.01.2021 at Annexure-D issued by the respondent No.4 only in so far as the demand of Rs.25,08.147/towards Ground Rent, Rs.4,51,467/- towards GST, Rs.2,50,815/- towards scrutiny Fee, Rs.22,98,335/-towards License Fee, Rs.5,10,741/- towards Betterment fee for building, Rs.25,53,705/- towards security deposit, surcharge of Rs.7,82,882/- towards water supply scheme (BWSSB). Rs.7,82,882/- towards Ring Road(BDA), Rs.3,91,441/- towards improving slums (KSCB), Rs.19,57,204/- towards Mass Rapid Transport System(BDA), levy and collection of 5% cess on surcharge, 1% administrative charges on Labour Cess and labour cess of Rs.41,21,000/- are concerned;

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(ii) Issue a writ of Mandamus or any other appropriate writ or 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 2^nd 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 2004 by the 1^st 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 1^st Respondent bearing No. UDD 3 TPP 2015 dated 25.02.2020 as contained in ANNEXURE-H in so far

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NC: 2025:KHC:20833 WP No. 3719 of 2021

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HC-KAR

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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 20.01.2021 at Annexure -D issued by the respondent No.4 without insisting for payment of aforesaid demands.

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

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HC-KAR

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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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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.

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Accordingly, this Court proceeds to pass the following:

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HC-KAR

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ORDER

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(i) The writ petition is allowed.

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(ii) The impugned demand notice dated

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20.01.2021 issued by respondent No.4 as per

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Annexure-D is hereby set-aside.

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(iii) Respondent Nos.3 and 4 are hereby

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directed to issue fresh/modified plan as the case may be.

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(iv) Respondent - BBMP is directed to forthwith process the petitioner’s application seeking building license and sanction of the building plan, strictly in accordance with law.

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(v) It is made clear that the issuance of the building license and approval of the plan shall

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not be withheld merely on the ground that the BBMP is contemplating to file an appeal against the reported judgment.

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