Karnataka promulgate ordinance to avoid refunding ₹2000 crore

The Karnataka government on Tuesday promulgated an ordinance to amend the state municipal corporations act to circumvent refunding of around ₹2000 crore collected from land owners, real estate developers and others in building and licence fee, security deposit and ground rent under the Bengaluru city corporations building bylaws.

The state government notified the Karnataka Municipal corporations and Certain Other law (Amendment) Ordinance, 2021 on Tuesday.

“The State Government may, if in its opinion it is necessary in the public interest so to do, by notification and subject to such restrictions and conditions and for such period, as may be specified in the notification, exempt or reduce the fee payable under this Ordinance, for any Board or Corporation or Organization owned or controlled by the Central Government or the State Government,” one of the amendments in the ordinance reads.

The ordinance comes days after the Karnataka High Court asked the Bruhat Bengaluru Mahanagara Palike (BBMP, the city’s civic body) to refund money collected under this premise as it is against the KMC Act of 1976.

The court had said that the city corporation had no authority to impose any fees deposited or paid by several petitioners, land owners, real estate developers and others.

The BBMP is one of the richest and biggest city corporations in India and has several streams of revenue to funds its yearly budgets of around ₹10,000 crores each year.

JC Madhuswamy, Karnataka’s minister for law and parliamentary affairs, had earlier said that the government would come out with an ordinance to save the city corporation from refusing the money and avoid any serious financial impact on the BBMP and its budgets.

“Notwithstanding anything contained in any judgment, decree or order of any Court, Tribunal or other authority to the contrary levy, assessment or collection of any amount as fee or penalty for sanctioning plan or commencement certificate or occupancy certificate made or purporting to have been made under section 299A and any action or thing taken or done, (including any notices or orders issued or assessment made) and all proceedings held and any levy and collection of fee or amount purported to have been collected by way of fee or penalty in relation to such levy, assessment or collection under the provisions of the Karnataka Municipal Corporations Act, 1976 (Karnataka Act 14 of 1977) or any rules, notifications, order, guidelines or letters before the commencement of this Ordinance shall be and shall be deemed to be valid and effective for all purposes as if such levy, assessment or collection or action or thing had been made, taken or done under the Karnataka Municipal Corporations Act, 1976 (Karnataka Act 14 of 1977) as amended by the Karnataka Municipal Corporations and Certain Other Law (Amendment) Ordinance, 2021,” according to the ordinance.