Dinesh Gundu Rao, wife challenge legality of Karnataka Municipal Corporation and Certain Other Law (Amendment) Act, 2021

Minister for Health Dinesh Gundu Rao and his wife Tabassum Dinesh Rao have approached the Karnataka High Court challenging the legality of the Karnataka Municipal Corporation and Certain Other Law (Amendment) Act, 2021. This Act, enacted in January 2022, was designed to “nullify” the court’s 2021 judgment, which had declared charges such as ground rent, licence fees, scrutiny fees, and security deposits levied for sanctioning building plans as illegal.

Notice questioned

The couple has also contested a demand notice issued to them by the BBMP on August 29, 2024. The notice requires them to pay ₹41.55 lakh in various charges under the amended law for the approval of a commercial building plan on a property they jointly own, in addition to ₹3.46 lakh towards labour cess.

Justice Ashok S. Kinagi, who heard the petition on September 17, issued notices to the State government and the BBMP and adjourned the case for further hearing.

The petition argues that the State lacked legislative competence to pass the amended law, which sought to nullify the High Court’s August 4, 2021, judgment. That ruling had declared the imposition of these charges through bylaws as illegal.

The petition also contends that the amended law was introduced solely to avoid refunding around ₹2,362 crores collected towards these charges since 2015, as mandated by the 2021 verdict. The petition claims that the amendments are arbitrary and illegal.

Unbridled power

The petitioners further challenge the excessive power granted to the BBMP to determine these charges. They question the legality of basing the charges on the guidance value of the property, noting that in many cases, the fees for building plan approval exceed the actual construction costs.

“The respondents [State government and BBMP], only to fill their coffers, have issued circulars and amended the law to amass funds. The collection of amounts stated in the demand notice is unscientific and lacks any valid basis. The BBMP’s excessive fees at the time of plan sanctioning is a coercive tactic that requires judicial intervention,” the petition states.

Additionally, the petition alleges that the BBMP is demanding a mass rapid transport system cess despite the absence of any government scheme for such a system.