Karnataka High Court sets aside single judge order on differential property fee
However, the division bench clarified that the amount already collected on those heads has to be refunded, if the BBMP fails in its appeal filed before the court against the single judge's order.
A division bench of Chief Justice Vibhu Bakhru and Justice CM Joshi passed the interim order after hearing the appeal filed by the BBMP questioning the single judge's order dated June 5. The single judge passed the order while disposing of the petitions filed by Sapthagiri Shelters and several individual property owners and land developers.
The single judge observed that a uniform rate can be collected depending upon the size of the plot and the extent of constructions and services related to sanction of plan for building construction rendered by the BBMP has nothing to do with the market value of the property or any logic in linking rates with the guidance value of the properties in different areas, notified by the government under the Karnataka Stamp Act for collection of stamp duty.
Declaring that the linking of the fee, leviable under Rule 37-A of the Karnataka Planning Authority Rules, 1965, to the market or guidance value for development of building or land or sanction for sub-division of plot or layout of Private Street under the Karnataka Town and Country Planning Authority Act, is illegal, the single judge had given liberty to the State Government and the BBMP to refix a standard fee after collecting empirical data.
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