News Karnataka
Friday, August 12 2022

HC stays BBMP’s property tax notice on edu institutions

Karnataka HC Justice Aradhe
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Bengaluru: The Karnataka High Court has granted an interim stay on notices issued by the Bruhat Bengaluru Mahanagara Palike (BBMP) demanding payment of property tax against educational institutions. A division bench will hear a batch of petitions challenging the demand for property tax from educational institutions under the amended provisions of the BBMP Act 2020.

“While Section 110 (1) (b) of the Karnataka Municipal Corporations Act exempts educational institutions from paying property tax, only government educational institutions are exempted under the new BBMP Act (Section 152),” said the petitioners, which included the Management Association of Schools Karnataka.

The court noted that prima facie, the petitioners have been able to make out gross discrimination in the petition filed by the Management Association of Schools of Karnataka.

The petitioners’ counsel argued that the disputed sections violated Article 14 of the Constitution because they are discriminatory. Buildings utilised for educational purposes by recognised educational institutions are free from property tax, according to the provisions of Section 110 (1) (b).

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