Karnataka High Court Grants Bail To Former MUDA Commissioner In Money Laundering Case

The Karnataka High Court on Wednesday granted bail to former Mysuru Urban Development Authority (MUDA) Commissioner G.T. Dinesh Kumar in a money laundering case linked to the alleged MUDA site allotment scam. The court held that while delay in trial by itself is not a ground for granting bail, the petitioner had shown several changed circumstances that justified the relief. Justice M. Nagaprasanna passed the order in proceedings initiated by the Enforcement Directorate (ED) under the...

Karnataka High Court Upholds Constitutional Validity Of Premium FAR Scheme, Rejects Challenge Over TDR Value

The Karnataka High Court recently upheld the state's Premium Floor Area Ratio (Premium FAR) scheme, rejecting challenges that it unfairly allowed developers to buy additional building rights from the government at the cost of landowners holding Transferable Development Rights (TDRs). A Division Bench of Chief Justice Vibhu Bakhru and Justice C.M. Poonacha dismissed a writ appeal filed by a landowner who had opted for Transferable Development Rights (TDRs) in lieu of monetary compensation for...

ED Can Share Information With Concerned Agencies On Violations Of Other Laws Under PMLA: Karnataka High Court

The Karnataka High Court on Wednesday held that information uncovered by the Enforcement Directorate (ED) during an investigation under the Prevention of Money Laundering Act (PMLA) can be shared with other agencies if it discloses violations of another law. It ruled that such information is not confined to proceedings under the PMLA alone. Justice M. Nagaprasanna made the observations while refusing to quash an FIR registered against Micah Mark and five others over allegations that they were...

Limitation Began On Refusal To Perform: Karnataka HC Upholds Arbitral Award In Housing Society's Favour

The Karnataka High Court has upheld an arbitral award directing a landowner to execute sale deeds for the remaining sites under a development agreement. It held that the society's claim was not barred by limitation because the agreement did not prescribe a fixed date for execution of the remaining sale deeds, and limitation began only when performance was refused. A division bench of Chief Justice Vibhu Bakhru and Justice K.S. Hemalekha dismissed an appeal by landowner A.R. Abdul Razak...

One Lender's Absence Doesn't Invalidate Resolution Under RBI's Stressed Asset Framework: Karnataka High Court

The Karnataka High Court has recently held that the absence of one lender from meetings convened to consider a borrower's resolution plan under the Reserve Bank of India's Prudential Framework for Resolution of Stressed Assets, 2019 does not invalidate the resolution process. It also does not affect a decision approved by the requisite majority of lenders. Justice Lalitha Kanneganti dismissed a writ petition filed by Ganjam Nagappa and Son Private Limited, a Bengaluru-based luxury jewellery...

Karnataka High Court Upholds Regulations Allowing Cross-Subsidy Surcharge On Open Access Electricity Consumers

The Karnataka High Court has recently upheld the validity of a Karnataka Electricity Regulatory Commission regulation that requires consumers procuring electricity through Open Access to pay Cross-Subsidy Surcharge (CSS). The court rejected a challenge to the surcharge mechanism, holding that it is consistent with the Electricity Act, the Electricity Rules and the National Tariff Policy. Justice Sachin Shankar Magadum held that the Karnataka Electricity Regulatory Commission (Terms and...

Challenge To Rejected Jurisdiction Objection Must Ordinarily Await Arbitral Award: Karnataka High Court

The Karnataka High Court has recently held that an order rejecting a jurisdictional objection by an arbitral tribunal cannot ordinarily be challenged through a writ petition while arbitral proceedings are pending. Such a challenge must ordinarily await the arbitral award stage. Justice Suraj Govindaraj delivered the ruling while declining to interfere with an order of a sole arbitrator who had rejected a challenge to the tribunal's jurisdiction in a dispute arising from an Agreement of Sale. ...

Karnataka High Court Upholds Decree Directing MVJ College To Pay STP Contractor Dues

The Karnataka High Court has largely upheld a commercial court decree directing MVJ College of Engineering to pay outstanding amounts claimed by a contractor engaged to refurbish and maintain the institution's sewage treatment plant (STP). The court, however, reduced the amount payable towards refurbishment works after accounting for tax deducted at source (TDS). A Division Bench of Chief Justice Vibhu Bakhru and Justice C.M. Poonacha partly allowed the college's appeal. It reduced the...

Karnataka High Court Sets Aside Part Of Arbitral Award Over GST Computation On Non-Tendered Works

The Karnataka High Court has partly set aside an arbitral award in a dispute between the National Centre for Biological Sciences (NCBS) and URC Constructions Pvt Ltd. The court held that the arbitral tribunal ignored material evidence while concluding that the value of non-tendered items was ₹9.65 crore exclusive of GST. A division bench of Chief Justice Vibhu Bakhru and Justice C.M. Poonacha found that invoices and other records on the arbitral record showed that at least some GST was...

Service Tax Cannot Be Levied By Treating Maintenance Of Minimum Balance As Consideration For Banking Services: Karnataka HC

The Karnataka High court has held that maintenance of a Minimum Average Balance (MAB) in a bank account is merely a contractual condition and cannot be treated as "consideration" for banking services so as to attract service tax. A bench of Justice S.R. Krishna Kumar quashed show-cause notices issued to Canara Bank, Bank of Baroda (formerly Vijaya Bank), Karnataka Bank and another bank over the proposed levy of service tax on facilities extended to customers maintaining minimum balances in...

Dedicated Ethanol Plants Cannot Be Disadvantaged After Investing Under Procurement Framework: Karnataka High Court

Dedicated ethanol plants that were set up to exclusively supply Oil Marketing Companies and invested substantial sums on the basis of long-term assurances cannot be denied the benefit of that framework without scrutiny, the Karnataka High Court has held. Justice M. Nagaprasanna delivered the ruling while allowing a petition filed by VINP Distilleries and Sugars Pvt. Ltd. against Indian Oil Corporation Ltd., Bharat Petroleum Corporation Ltd. and Hindustan Petroleum Corporation Ltd. The dispute...

Karnataka High Court Upholds Special Court Attachment Under KPIDFE Act, Rejects Canara Bank Challenge

The Karnataka High Court on 10 June 2026 dismissed an appeal filed by Canara Bank against a Special Court order that had made absolute an interim attachment under the Karnataka Protection of Interest of Depositors in Financial Establishments Act, 2004 (KPIDFE Act). A Division Bench of Justices Anu Sivaramman and Venkatesh Naik T dismissed the appeal filed by Canara Bank and upheld the Special Court's order. It held that a secured creditor who has constructive notice of an attachment cannot...