Karnataka Apartment (Ownership and Management) Bill, 2026: A Proposed New Framework for Apartment Ownership and Redevelopment
Introduction
The Karnataka Government has proposed the Karnataka Apartment (Ownership and Manage-ment) Bill, 2026 (“Bill”) with the objective of replacing the Karnataka Apartment Ownership Act, 1972 and the Karnataka Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1972. A unified framework controlling unit ownership, common areas, apartment associations, maintenance, dispute resolution, and redevelopment is what the proposed legislation aims to create. The Bill has since been passed by the Karnataka Legislative Assembly and Legislative Council, but is not yet in force pending the Governor’s assent and commenc-ement notification.
Key Proposed Changes
One notable aspect of the Bill is its proposed treatment of the land and common areas associated with an apartment project. The concept envisions apartment owners having an undivided and inseparable interest in the project's land and common amenities, with the apartment association largely responsible for management, maintenance, and administration. This is meant to provide better clarity on ownership rights and to resolve conflicts over communal areas and facilities.
The Bill is proposed to apply to projects with more than eight flats, subject to certain exemptions. It also aims to increase transparency about the promoter's obligations, such as mortgage disclosure and the transfer of funds and data to the unit owners' association.
Another key proposal is about structural safety. Buildings would be required to undergo a structural stability audit after 30 years of construction, with subsequent certification every five years. This is especially relevant for Bengaluru's aging apartment portfolio, as it may impose additional compliance requirements on apartment associations.
Redevelopment Framework
The Bill presents a precise regulatory structure for redeveloping residential developments. Redevelop-ment would typically necessitate the approval of owners representing at least 75% of the flats in the project. The idea also includes compensation provisions for owners who do not agree to redevelopment.
This paradigm has the potential to significantly modify how redevelopment issues are handled, particularly in older apartment developments where individual disagreement has traditionally hindered collective redevelopment.
Implications for Real Estate Due Diligence
If enacted, the proposed framework will have a considerable impact on property due diligence. Lawyers and buyers may need to review not only the apartment title and the undivided interest in the property, but also the project's declaration, association records, common-area ownership, promoter handover requirements, structural compli-ance, and redevelopment-related resolutions.
The Bill thus reflects a potentially substantial move away from a mostly apartment-centric ownership framework and toward a more comprehensive project-level framework governing ownership, mana-gement, and redevelopment.
Conclusion
The proposed Karnataka Apartment (Ownership and Management) Bill, 2026 seeks to modernize a legislative framework that has governed apartment ownership in Karnataka for more than 50 years. Its regulations on common-area ownership, association governance, structural safety, and redevelopment may have significant implications for apartment owners, developers, and real estate professionals. However, the Bill is not yet in force, and its commencement and practical implementation will be determined by the applicable assent, commence-ment notification and subsequent rules/notices.
Maharashtra Government Lifts Ban on Allotment of State-Owned Land to Cooperative Housing Societies
Introduction
The Government of Maharashtra, on August 20, 2026, lifted the long-standing freeze on the allotment of state-owned land to cooperative housing societies and introduced a revised policy governing such allotments. The freeze had been imposed following controversies surrounding the earlier lottery-based system. The revised policy, framed in the context of proceedings before the Bombay High Court and the observations of the Bombay High Court dated November 25, 2024, seeks to introduce greater transparency and accountability in the allotment process.
Key Features of the Revised Policy
Under the earlier policy, government-owned plots were allotted to cooperative housing societies through a lottery system. The revised policy replaces this mechanism with a transparent auction process. District Collectors will identify available plots and invite bids through public advertisements. Allotment will be based on technical and financial evaluation, with the society offering the highest bid being selected. The base price has been prescribed at 2.5% of the prevailing writers, artists, sportspersons and journalists. The remaining categories, including Central Govern-ment employees, armed forces personnel and economically weaker sections, are allocated 5% each.
The revised policy further provides that government land will be granted only on a 30-year lease. Conversion into Class-I, or freehold, occupancy will be available only after completion of the lease period. The policy also introduces specific reservation and eligibility requirements. At least 20% of the members of a society allotted government land must belong to backward classes, while 5% must comprise persons with disabilities. The available plots are also subject to category-wise reservations, including 40% for the general category, 15% for State Government and local body employees, 10% for Scheduled Castes, Scheduled Tribes and nomadic tribes, and 10% for writers, artists, sportspersons and journalists. The remaining categories, including Central Govern-ment employees, armed forces personnel and economically weaker sections, are allocated 5% each.
In addition, the policy mandates joint membership of spouses in societies allotted government land. District Collectors have also been empowered to take over benami or dummy flats, without compens-ation, where such arrangements are identified. Any transfer of flats, or their mortgage for purposes such as obtaining bank finance or undertaking redevelopment, will require prior permission from the District Collector.
Conclusion
The revised policy marks a significant change in the manner in which government land is allotted to cooperative housing societies in Maharashtra. By replacing the earlier lottery system with a competitive bidding process, the policy seeks to enhance transparency and reduce discretionary allotments. At the same time, the 30-year lease structure, reservation requirements and restrictions on transfer and mortgage impose additional compliance requirements on housing societies. These provisions will therefore be important for cooperative housing societies, developers and financial institutions when structuring future allotm-ents, redevelopment projects and financing arrang-ements involving government-owned land.
Extension of Registration of Real Estate Projects by TNRERA on Account of the Prevailing Situation in West Asia
Introduction
The Tamil Nadu Real Estate Regulatory Authority (TNRERA) released a circular on 10 August 2026 providing a four-month extension to the validity of registration and corresponding completion timelines of registered real estate projects whose completion date, revised completion date or extended completion date falls on or after 28 February 2026.
The circular has been issued in the context of the prevailing situation in West Asia, which has affected global supply chains and the availability of constru-ction materials. The situation has been treated as a “war” for the purpose of invocation of the force majeure provisions under Section 6 of the RERA Act. Since the strait serves as a connector between the Global East and the Global West for trade and travel, the blockage of the Strait has severely affected Global supply chains, causing shortage of the construction materials, all over the world. The deficiency has caused delays in various projects all across the country, prompting the Real Estate Regulatory Authority to issue this order.
This circular was released on the basis on the Advisory issued by the Ministry of Housing and Urban Affairs in an Advisory dated 31. 07. 2026, where, it had advised all the Real Estate Regulatory Authorities to grant the extension of registration and completion timelines of registered projects for the purpose of invocation of the Force Majeure Clause.
The Department of Expenditure, Ministry of Finance has already declared the ongoing crisis as “war” vide its Office Memorandum dated 29th April 2026 for the purpose of invocation of the Force Majeure Clause3. This order, by RERA, was issued based on the power vested on the State RERA Authority under Section 6 of the Real Estate (Regulation and Development) Act, 2016, read with Rule 7 of the Tamil Nadu Real Estate (Regulation and Development) Rules, 2017, under which extension of registration can be provided for a real estate project on account of Force Majeure, inter alia, including “war”.
The extension has been granted up to for a period of four months, only for the project whose completion dates, revised completion date or extended completion date falls on or after 28th February, 2026. Additionally, under Section 7(3) of the Real Estate (Regulation and Development) Act, 2016, the Authority may permit the extension to remain in force, subject to such terms and conditions as it considers appropriate. This shall be done on considering the interest of the allottees of the property.
The previous instance in which extension of registration was provided to the promoters by the State RERA Authority to invoke the Force Majeure clause, was on account of the COVID-19 outbreak, where extension was provided between 3 to 6 months in various states, at the advice and recommendation of the Central Advisory Council (CAC) of the Ministry of Housing and Urban Affairs. An additional 3 months of extension was also advised by the Ministry, to the State RERA Authorities, based on the situation in the respective State on the account of COVID-19.
Karnataka Apartment (Ownership and Management) Bill, 2026: Key Features
- Applicability: Applies primarily to projects comprising more than 8 apartments, including specified villa projects and developments in approved layouts, subject to prescribed exclusions.
- Apartment as Immovable Property: Each apartment is recognised as heritable and transferable immovable property and may be sold, mortgaged, leased, gifted, exchanged or otherwise transferred.
- Undivided Share: Ownership of an apartment includes a proportionate undivided and non-exclusive interest in the project land and common areas, generally calculated based on the apartment’s private area.
- Common Areas: Common areas include staircases, lifts, corridors, terraces, basements, parks, gardens, common parking, internal roads, utilities, water and sewage systems, fire-safety installations and other facilities for common use.
- Parking: Common parking cannot be independ-ently sold or transferred. Private parking is recognised only where it is an approved, enclosed/demarcated built-up area forming part of the sanctioned plan and conveyed through a registered instrument.
- Project Declaration: The promoter must submit a declaration to the Competent Authority within 60 days of issuance of the Occupancy Certificate, containing details of the land, title, plans, apartments, common areas, undivided interests, permitted use and encumbrances.
- Deed of Transfer: The promoter must execute and register a deed transferring the apartment together with its corresponding undivided interest in the land and common areas.
- Encumbrances: Mortgages and charges affecting the project must be disclosed, and an apartment affected by a promoter’s mortgage or charge cannot be conveyed without the requisite release/no-dues certificate.
- Additional Development Rights: Future development potential arising from changes in FSI, FAR, zoning or planning regulations belongs collectively to the apartment owners, generally in proportion to their private areas.
- Apartment Owners’ Association: A single association is contemplated for each It becomes a body corporate with perpetual succession and is responsible for management and administration of the project.
- Maintenance and Expenses: The association is responsible for maintaining common areas and ensuring compliance with the sanctioned plan and Occupancy Certificate. Maintenance dues constitute a charge on the apartment and its appurtenant undivided interest.
- Accounts, Audit and Insurance: The association must maintain proper accounts and bank accounts, undergo annual audit and insure the project/common areas against prescribed risks.
- Structural Safety and Redevelopment: Structural stability certification is required after 30 years from construction, with subsequent certification at least once every five years. Redevelopment may be undertaken subject to prescribed conditions, including approval by owners representing 75% of the apartments.
- Dispute Resolution: The Bill establishes a Competent Authority and First and Second Appellate Authorities, with limited recourse to the High Court, Civil court jurisdiction is barred in respect of matters that fall within the jurisdiction of the statutory authorities.
- Penalties: Promoters and other persons may be subjected to monetary penalties and continuing daily penalties for specified contraventions, including failure to submit declarations, facilitate association formation, execute transfer deeds or obtain an Occupancy Certificate.
- Repeal and Savings: The Bill proposes repeal of the Karnataka Ownership of Flats (Regulation of the Promotion of Construction, Sale, Manage-ment and Transfer) Act, 1972 and the Karnataka Apartment Ownership Act, 1972, while preserving existing rights, liabilities and pending proceedings through transitional provisions.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
