Greeva Garg–
Published on: August 11, 2021 at 11:03 IST
Karnataka High Court has quashed the fees levying under the bye-laws of Bruhat Bengaluru Mahanagara Palike (BBMP), which demands Ground Rent, Licence Fee, Building Licence Fee, Scrutiny Fee, Security Deposit from developers, being violative of the Karnataka Municipal Corporation Act.
The Single Bench headed by Justice M Nagaprasanna, while deciding on a batch of petitions filed by property owners, apartment dwellers, and builders, held all the charges to be unenforceable.
“There is no power under Act to impose the impugned levies i.e., ground rent, license fee, building license fee, scrutiny fee, and security deposit. It is trite that fees can be imposed only if there is quid pro quo. Quid pro quo in legal parlance is that ‘fee’ that can be imposed for a service that is rendered,” the order stated.
Advocate Nayanatara, appearing on behalf of the batch of petitioners submitted that the impugned levy is violative of Article 19(1)(g) of the Constitution of India and all the levies are without the authority of law as neither the Statute nor the Bye-laws empower the BBMP for that.
Advocate Nayanatara demanded that petitioners are entitled to a refund of the entire amount deposited without prejudice.
The Bench clarified that the State or the BBMP is not precluded from bringing in the impugned levies under the provisions of the Act or the Rules by making suitable amendments to the Act and the Rules, and stated, “Imposition of labour cess under the Welfare Cess Act is upheld, but its demand for payment upfront in terms of Government Orders dated 18.01.2007 and 28.02.2007, stands quashed.”
The Court allowed the petitioners to seek a refund of the amount deposited with the Court or paid to the corporation under protest.
As per the Court’s order, the petitioners would be at liberty to give representation against the BBMP and the BBMP would consider the refund of the amounts, per law and the findings of the Court.
Also Read: What is Municipal Corporation of Delhi (MCD) scam?