K’taka plans new apartment ownership, management law

Bengaluru: Ina move aimed at safeguarding the interests of lakhs of apartment residents and owners across the state, the Karnataka government is preparing to introduce the Karnataka Apartment (Ownership and Management) Bill, 2025, Deputy Chief Minister D.K. Shivakumar said on Saturday.The long-pending legislation is expected to redefine the legal and administrative framework governing apartment ownership, management, and common facilities. Its approval, however, may depend on the outcome of the forthcoming Greater Bengaluru Authority elections. Against this backdrop, the Urban Development Department organised an interaction at Vidhana Soudha, where Shivakumar held detailed discussions with members of the Bengaluru Apartments Federation and apartment owners.

The Deputy Chief Minister said the government is in the process of consulting all stakeholders and collecting suggestions before finalising the proposed Bill. He emphasised that the objective is to bring clarity, transparency, and stronger legal protection to apartment living, which has become the dominant form of housing in urban Karnataka.

The existing Karnataka Apartment Ownership Act, 1972, provides a state-specific legal framework for ownership, management, and transfer of individual apartment units. It recognises apartments as immovable property, enabling mortgage and inheritance, and defines key concepts such as apartments, common areas, declarations, and associations. It also governs the maintenance of shared facilities such as lifts, swimming pools, and gardens. However, with rapid urbanisation and the growth of large apartment complexes, stakeholders have long demanded a more comprehensive and contemporary law. During public consultations, apartment residents and associations placed several key demands before the government. These include ensuring that there is no direct government interference in the formation and functioning of residents’ welfare associations, tabling the new Bill in the Belagavi winter session of the legislature, fixing clear timelines for builders to hand over land and common areas to owners’ associations, and establishing a competent authority to resolve disputes quickly and reduce the burden on courts. They also sought clarity on issues often left unregulated, such as pet ownership and the use of common areas.

The proposed Bill is expected to apply to housing projects with eight or more apartments. Under the new framework, the Urban Development Department will oversee the registration of associations, approval of bye-laws, and overall supervision, addressing long-standing jurisdictional ambiguities. Maintenance charges will be levied based on the super built-up area of individual apartments. Existing associations formed under the current law will be deemed as associations of allottees under the new legislation.

The Bill also proposes mandatory formation of associations within three months of achieving more than 50 percent bookings in a project. Separate user charges may be levied for commercial facilities such as clubhouses, swimming pools, and shops, in addition to regular maintenance fees. Developers will be required to complete separate documentation for common areas within 12 months of the law coming into force.

Redevelopment of apartment projects will be permitted with the consent of at least 75 percent of apartment owners. The land beneath common areas and shared facilities will be transferred to apartment owners as an undivided share, proportionate to their unit area.

According to the government, the new law will offer multiple benefits to apartment owners. It will clearly define ownership rights, protect properties from disputes, and empower associations to manage maintenance, finances, and security more efficiently. The legislation will also provide structured mechanisms for dispute resolution, ensure proper upkeep of facilities, improve the overall living environment, and enhance property values. Transparent financial reporting will bring greater accountability in the use of maintenance funds.The proposed Karnataka Apartment (Ownership and Management) Bill, 2025, is seen as a significant step towards modernising urban housing governance and addressing long-standing concerns of apartment residents across the state.