Now Reading: Karnataka High Court Permits Fee on Building Plan Sanctions Linked to Guidance Value
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Karnataka High Court Permits Fee on Building Plan Sanctions Linked to Guidance Value
Quick Summary
- The Division Bench of the Karnataka High Court has allowed the Bruhat Bengaluru Mahanagara Palike (BBMP) to levy fees for building license/plan sanction, completion and occupancy certificates, ground rent, etc., based on the “guidance value” of properties.
- This interim order temporarily stays a June 5 verdict by a single judge that had set aside amendments to the BBMP Act regarding such fee levies.
- Chief Justice Vibhu Bakhru and Justice C.M. Joshi clarified that BBMP must refund any fees collected if the final judgement goes against it.
- The single judge had previously argued that services related to building plan approval should not be linked to market guidance values but rather charged uniformly based on plot size and construction extent.
Indian Opinion Analysis
The High Court’s interim allowance for BBMP’s fee structure tied to “guidance value” brings temporary relief for urban administration in Bengaluru. While this approach may provide dynamic revenue generation aligned with property market trends, critics argue it lacks logical connection between service delivery costs and property valuations. If upheld,this ruling could set a precedent enabling local bodies across India to pursue similar policies under stamp duty laws. However, safeguards like refunds ensure fairness in case of adverse final judgements. This tension highlights ongoing debates around equitable taxation within urban governance frameworks.
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