The Karnataka High Court has granted an interim stay on notices issued against educational institutions by the Bruhat Bengaluru Mahanagara Palike (BBMP) demanding payment of property tax.
A batch of petitions challenging the demand of property tax from educational institutions under the amended provisions of the BBMP Act 2020 will be heard before a division bench.
The petitioners, including the Management Association of Schools Karnataka, contended that while Section 110 (1) (b) of the Karnataka Municipal Corporations Act exempts educational institutions from paying property tax, the new BBMP Act (Section 152) has retained only government educational institutions under these exemptions.
Earlier, the matter was listed before the single-judge bench. In the petition filed by the Management Association of Schools Karnataka, the court noted that prima facie, the petitioners have been able to make out gross discrimination.
The counsel for the petitioners had contended that the sections under challenge amount to discrimination under Article 14 of the Constitution. It was argued that the provisions under Section 110 (1) (b), the buildings used for educational purposes by recognised educational institutions are exempted from property tax.
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