Karnataka Assembly Passes Apartment Ownership and Management Bill Amid Ruckus

Bengaluru: The Karnataka Assembly on Friday passed three Bills, including the Karnataka Apartment (Ownership and Management) Bill, 2026, aimed at providing a clear legal framework for the governance, management and use of common areas and facilities in apartment buildings. It also deals with the ownership of an individual apartment and undivided shares and interest in common areas and facilities.

The Bills were passed amid protests by the BJP and JD(S) demanding the resignation of Minister N Nagendra, over corruption charges against him.

Piloting the Karnataka Apartment (Ownership and Management) Bill for the House's consideration, Bengaluru Development Minister Krishna Byre Gowda said the government brought a mature and comprehensive piece of legislation after considering the views of all stakeholders.

The government remains open to making improvements to the law if required in the future, he said.

"Urbanization in our state is growing very rapidly. Since land is a very scarce resource, instead of constructing individual houses as was done in the past, the construction of apartment-style housing is increasing significantly. As this phenomenon continues to grow day by day, more and more people are living in apartments and residential complexes," the minister said.

According to him, there are different kinds of residential complexes, particularly apartment complexes, and the people living in these apartments face various issues relating to ownership and day-to-day management.

"For example, there are already many interpretations and disputes regarding who should own and maintain common areas, as well as roads, clubhouses, open spaces, and other facilities within these complexes."

Noting that the existing laws also lack a clear provision regarding what should happen if an old building needs to be reconstructed in the future, the Minister said as the number of people living in apartments continues to increase, the problems associated with apartment living also rose.

"If we want to provide solutions to these problems, there needs to be a clear legal framework," he said.

Gowda pointed out that the laws enacted in 1972–73 do not contain adequate solutions for today's circumstances and the requirements of the present day. Therefore, they no longer provide sufficient solutions.

"Similarly, the RERA law does not address or provide solutions to all the problems relating to apartments. In addition, many apartment complexes have registered Residents' Welfare Associations. Some have been registered under the 1972 law, while others have been registered under the Cooperative Societies Act. As a result, in some apartment complexes, there are two or three associations, each claiming to be the officially recognized association, leading to disputes and confusion among them," he said.

Therefore, with the objective of resolving all these complications and addressing the problems faced by people living in apartments, the government has prepared this Bill in a very ambitious and comprehensive manner.

Under this Bill, the Residents' Welfare Association of Owners must be formed under this new law and not any other law, Gowda said.

"We have also provided solutions and guidelines regarding management of common areas, how they should be transferred from the builder, and how their subsequent management should be carried out."

"If any dispute arises, there will be a Competent Authority appointed by the Government, consisting of the concerned officer. There will be one such authority at the Gram Panchayat level, one at the municipal level, and one in the municipal corporations.

A competent officer/authority will be appointed, and whenever a dispute arises, the parties can approach that authority to have the dispute resolved. There will also be provisions for appeal against such decisions," he added.

Noting that reconstruction may become necessary if a building becomes old and its structural stability is no longer assured, the Minister said the bill provides a mechanism for reconstruction, which can be undertaken if 75 per cent of the owners decide on it.

If someone does not agree to the reconstruction, an independent mechanism will be established to assess the value of that person's property. After determining its value, they will be provided compensation amounting to twice that value, and their property can also be acquired so that the entire building can be reconstructed, he added.

Karnataka Municipal Corporations (Amendment) Bill and the Karnataka Municipalities (Amendment) Bill, passed by the Assembly, empower officials to declare a private street a public street if that private street, including drains, is in poor condition and endangers public safety.

The authority can either initiate the process on its own or on request by owners of private streets.

The Minister said the roads left while developing unauthorized layouts are still recorded in the names of the original landowners. Under the new amendment, there will now be a legal provision to officially declare these roads as "public roads" in the records of the local municipal corporation or municipality.

Once the roads are officially recognized, sites and houses in those layouts will be eligible, subject to the prescribed rules, for proper A-Khata records. This will provide property owners with full and legally recognized ownership status, he added.