BENGALURU: On Wednesday, the Karnataka government introduced the proposed Karnataka Apartment (Ownership and Management) Bill, 2026. This initiative aims to repeal outdated laws that have been in place for over fifty years and establish a cohesive legal framework that will protect the rights of apartment owners, improve governance, and support the redevelopment of aging residential complexes.
The proposed legislation, developed in consultation with apartment owners’ associations in Bengaluru, seeks to replace the Karnataka Apartment Ownership Act of 1972 and the Karnataka Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act of 1972. The government posits that these laws fail to address current apartment living realities and lack alignment with the Real Estate (Regulation and Development) Act (RERA) of 2016.
Currently, Bengaluru has over 25,000 apartment buildings, housing approximately 25-30 lakh flats. Furthermore, around 60,000-75,000 flats were registered with KRERA in Bengaluru Urban and surrounding areas within the last year, indicating the urgent need for a modern legal framework.
Key features of the Bill include its applicability to apartment projects with more than eight units, enforcement by the Urban Development Department through a designated competent authority, and clear allocation of ownership of project land and shared areas to apartment owners. It restricts associations to management, maintenance, and administration roles.
The Bill also defines terms such as private area, super built-up area, and the calculation of undivided shares. It mandates that buildings older than 30 years obtain structural stability certificates every five years, establishes a two-tier dispute resolution system with appellate powers like those of a civil court, and allows for deemed conveyance of common areas in older projects where transfers have not been completed. Additionally, it outlines a legal framework for redevelopment requiring consent from at least 75% of owners and ensures compensation of at least twice the market value for those who do not consent.
The government emphasizes that this proposed law aims to protect ownership rights, ensure that ownership of common facilities is with apartment owners, enhance financial transparency, hold developers and associations accountable, establish an effective dispute resolution mechanism, and facilitate the transparent redevelopment of structurally unsafe buildings.
