Synopsis: The Karnataka government has proposed a bill to replace 2 old Acts governing apartment ownership, aiming to bring clarity on ownership rights, and redevelopment.
As part of the ecosystem of more than 25,000 buildings with some 25 lakh to 30 lakh flats in Bengaluru, the framework under which they currently function was much before the rise of gated communities. In this backdrop, the Karnataka Apartment (Ownership and Management) Bill, 2026 has been proposed in the assembly, to replace older acts with a new one.
Why a New Law Is Being Proposed
The current Karnataka Apartment Ownership Act, 1972, and Karnataka Ownership Flats Act, 1972, were passed when big gated communities and mixed-use development hadn’t yet emerged. In fact, the Karnataka government itself points out that the current regime doesn’t completely align with the Real Estate (Regulation and Development) Act (RERA), 2016, creating ambiguity that affects the way ownership, management, redevelopment and disputes around apartment complexes and ownership flats are managed. The new bill is intended to consolidate all of this under one law.
Key Changes for Apartment Owners
One of the biggest shifts is around ownership clarity, land and common areas will vest with apartment owners, while apartment associations will handle only management, maintenance and administration. The Bill also introduces clearer legal definitions for terms like private area, super built-up area and undivided share of land, categories that have historically caused disputes between buyers and developers. For older complexes, it proposes deemed conveyance, allowing common areas to be legally transferred to owners even in projects where developers never completed the process.
Provisions for Ageing Buildings
With many Bengaluru complexes now over three decades old, the Bill makes structural stability certificates mandatory every five years for buildings older than 30 years. It also creates a formal legal framework for redevelopment of ageing or unsafe complexes that can proceed with the consent of at least 75% of apartment owners, while owners who don’t consent must be compensated at least twice the market value.
Areas That Are Most Likely to Be Affected
Note: This categorisation is inferred from general locality development timelines and is indicative
Coverage and Dispute Resolution
The Bill applies to apartment projects with more than eight units and will be administered by a designated competent authority under the Urban Development Department. It also proposes a two-tier dispute resolution mechanism with appellate powers similar to a civil court, intended to resolve disputes between developers, associations and owners faster than conventional civil litigation — where roughly 60,000-75,000 flats were registered with KRERA in Bengaluru Urban and adjoining areas over the past year alone.
Government’s Stated Intent
State leadership has framed the Bill as a measure to protect middle-class homebuyers and ensure apartment owners hold complete ownership rights over their homes, rather than partial or contested claims. Public consultations with residents’ welfare associations and other stakeholders have already been held in Bengaluru, and the government has indicated it will factor in public suggestions before finalising the draft, with further consultations planned with political parties and MLAs. Separately, the state’s Bhu Guarantee initiative has been cited as a complementary mechanism to help ensure property ownership is properly transferred to buyers.
What Happens Next
The Bill is expected to be introduced in the Assembly session beginning August 6. It remains a proposed draft and must go through the full legislative process before becoming law.
