HC quashes various fees charged by BBMP under building by-laws

The BBMP’s demands of ground rent, licence fee, building licence fee, scrutiny fee and security deposit under the building bylaws are not only unenforceable but also against the Karnataka Municipal Corporations (KMC) Act, the high court has ruled.

“Even a rupee cannot be taken from a citizen as a fee except in accordance with law,” Justice M Nagaprasanna observed, quoting several judgments of the Supreme Court and the high courts on the issue of tax and fee.

The court said several orders had clearly held that a fee can be charged only for certain services that are rendered to the benefit of the individual, otherwise it would take the character of tax. It, however, gave the state government, or the BBMP, the liberty to bring the levies under the provisions of the act or the rules by making suitable amendments to them.

With this judgement, the court disposed of hundreds of petitions filed by property owners, apartment dwellers and builders challenging the levy of fees under various heads. While the petitioners had contended that they are legally liable to pay only the betterment fee and the compound wall fee, the Bruhat Bengaluru Mahanagara Palike (BBMP) claimed the building bylaws gives it the powers to levy fees under various categories. The court made it clear that any fee levied under the act can only be on matters allowed by the act.

“Framing of building by-laws is dealt with under Sections 295 and 423 (of the KMC Act). Nowhere (do) the said sections empower framing of bylaws empowering imposition of any fee by the corporation,” the court said.

The court also said linking the guidance value for the purpose of levying ground rent would result in gross arbitrariness and violate Article 14 of the Constitution. “Linking the impugned levies to the guidance value, as stated hereinabove, has led the citizens bleeding,” it added.

The court upheld the imposition of a labour cess under the Welfare Cess Act, but quashed the government orders dated January 18, 2007, and February 28, 2007, for the demand of payment upfront. It also quashed the January 27, 2017, and March 30, 2017, circulars demanding the lake rejuvenation fee, noting that only the planning authority (BDA) can levy such a fee under the Town and Country Planning Act.