Brief Overview:
To replace the dual statutory regime currently operating under the Karnataka Apartment Ownership Act, 1972 and the Karnataka Ownership of Flats Act, 1972, the Government of Karnataka has proposed a bill for a modern and streamlined framework governing apartment ownership and housing societies.
Technical Details:
Key proposed changes in the Karnataka Apartment (Ownership and Management) Bill, 2025 (“Bill”):
1) Applicability: Applies to projects with more than 8 apartments and certain developments with collectively owned or managed common facilities.
2) Exclusions: Excludes Government buildings, single-owner buildings, and certain plotted/villa developments with separately conveyed sites.
3) Key concepts: Clarifies private area, super built-up area and undivided rights in land/common areas, with a calculation basis for proportionate shares.
4) Associations: Covered projects must follow the Bill’s association framework; existing associations must align with the bye-laws within 6 months from commencement of the Bill.
5) Competent Authority: Establishes a dedicated authority to register/supervise associations, approve bye-laws, issue directions, impose penalties and address disputes.
6) RERA alignment: Cross-refers to Real Estate (regulations and Development) Act, 21016 (“RERA”) rights/obligations, preserves promoter defect liability, and treats final occupancy certificate as the completion certificate for RERA.
7) Redevelopment: Requires 75% owner consent, buy-out protection for dissenting owners and security before demolition.
8) Penalties: Replaces the older imprisonment-based model with administrative penalties, including up to rupees one lakh for specified promoter defaults.
9) Online portal: To be set up within 2 years for filings, records and public access to project/association information.
10) Overriding effect: The Bill will prevail over conflicting laws, agreements, customs or decrees, while operating in addition to other laws.
JC Takeaways:
1) Single consolidated law: Replaces two legacy statutes with one RERA-aligned framework.
2) Clearer ownership terms: Defined concepts and calculation methodology may reduce ownership disputes.
3) Unified association framework: Covered projects will follow a single statutory governance route.
4) Structured redevelopment: Introduces 75% consent, dissenting-owner protection and pre-demolition security.
5) Stronger oversight: A Competent Authority and penalty regime aim to improve compliance and enforcement.
For further details, please see:
Karnataka Apartment (Ownership and Management) Bill, 2025
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