Karnataka assembly takes up Bill to give more power to apartment owners

BENGALURU: The Karnataka Apartment (Ownership and Management) Bill, 2026, was tabled in the Legislative Assembly on Wednesday against the backdrop of continuous uproar by the opposition BJP members demanding the resignation of Planning and Statistics Minister B Nagendra over the alleged ST Corporation scam.

Key points

• While protecting rights, liabilities and proceedings arising under the existing laws, the Bill proposes to repeal the Karnataka Ownership of Flats Act, 1972 and the Karnataka Apartment Ownership Act, 1972.
• Other contraventions could attract penalties of up to Rs 20, 000, with a further penalty of up to Rs 1, 000 per day for continuing violations.
• The Bill provides for a competent authority and appellate mechanism to adjudicate disputes relating to promoters, associations and apartment owners.
• The legislation will apply to projects comprising more than eight apartments, including certain villa projects.
• While defining the responsibilities of promoters and associations, the proposed KAOMA framework provides for collective ownership and statutory self-governance by apartment owners.

For context, the proposed legislation seeks to consolidate the state's laws governing apartment ownership and management, recognise apartments as heritable and transferable immovable property, and establish a statutory framework for the management of apartment projects and common areas.

Meanwhile, the legislation will apply to projects comprising more than eight apartments, including certain villa projects. It excludes administration buildings, properties retained under single ownership and certain plotted or villa developments where individual sites are conveyed to purchasers and civic amenities are handed over to the local authority.

While defining the responsibilities of promoters and associations, the proposed KAOMA framework provides for collective ownership and statutory self-governance by apartment owners. It additionally seeks to protect common areas and development rights, regulate maintenance and redevelopment, and provide a dedicated mechanism for dispute resolution and enforcement.

Among the key provisions, an apartment owner will have exclusive ownership and possession of the apartment along with a proportionate, undivided and non-exclusive interest in the project land and common areas.

Meanwhile, the Bill additionally provides that future development potential arising from changes in Floor Space Index (FSI), Floor Area Ratio (FAR), zoning or planning regulations will belong collectively to apartment owners, rather than automatically vesting with the promoter. The proposed legislation provides for stringent penalties for defaulting promoters.

Failure to submit the declaration, facilitate formation of apartment owners' association, execute transfer deeds or obtain an Occupancy Certificate could attract a penalty of up to Rs 1 lakh, along with an extra penalty of up to Rs 1, 000 per day for continuing violations.

Other contraventions could attract penalties of up to Rs 20, 000, with a further penalty of up to Rs 1, 000 per day for continuing violations. The competent authority can additionally direct rectification or restoration of the property.

Meanwhile, the Bill mandates promoters to hand over project documents and funds collected towards maintenance, security deposits and corpus funds to the apartment owners' association after the Occupancy Certificate, along with audited statements.

It additionally proposes safeguards for common areas and parking, gives greater powers to apartment owners' associations and provides for redevelopment with the written consent of at least 75% of apartment owners.

Each apartment, together with its corresponding undivided interest in the land and common areas, would be treated as a separate property for municipal assessment and taxation.

Notably, the Bill provides for a competent authority and appellate mechanism to adjudicate disputes relating to promoters, associations and apartment owners. It additionally bars civil courts from entertaining matters falling within the jurisdiction of these authorities. The administration is required to establish an online portal within two years of the Act coming into force for processing applications and maintaining digital records of declarations, associations and federations.

In short, karnataka assembly takes up Bill to give more power to apartment owners is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.