Previous judicial decisions establish that levies related to ground rent are unlawful under the Karnataka Municipal Corporations Act.

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 demand notice dated 29/07/2021 in No.

No.BBMP/Addl.Dir/JDNORTH/LP0039/2020-21, JDTP/LP/29-2007-08 at ANNEXURE-J issued by the Respondent No.4 towards demanding a sum of Rs. 1,04,02,000/- as additional amount for Ground Rent, and inspection charges;

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 framed under the Karnataka Municipal Corporations Act as unconditional, Arbitrary, illegal and ultravires.

iv) issue Writ of mandamus or similar Writ or order or direction directing the respondent Nos.3 and 4 to issue Occupancy Certificate at ANNEXURE-J issued by the respondent No.4 without insisting for payment of demands stated above.

v) Issue any other appropriate Writ or order or direction deemed fit in the circumstances of the case, in the interests of justice and equity.”

2. 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.

3. 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. and 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.

4. 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.

5. 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.

6. Accordingly, this Court proceeds to pass the following:

ORDER

(i) The writ petition is allowed.

(ii) The impugned demand notice dated

29.07.2021 issued by respondent No.4 as per Annexure-J is hereby set-aside.

(iii) Respondent Nos.3 and 4 - BBMP are hereby directed to issue Occupancy Certificate in accordance with law in compliance of the construction strictly adhering to the approved building plan.

(iv) Respondent Nos.3 and 4 - BBMP are directed to forthwith process the petitioner’s application seeking Occupancy Certificate, strictly in accordance with law.

(v) It is made clear that the issuance of the Occupancy Certificate shall not be withheld merely on the ground that the BBMP is contemplating to file an appeal against the reported judgment.

(vi) If the Occupancy Certificate is issued, the same shall be subject to the outcome of any appeal that may be filed by the BBMP against the said judgment.