Apartment owners in Karnataka could soon see sweeping changes to how residential complexes are owned, managed and redeveloped, with the state government proposing a new law aimed at replacing decades-old legislation.
The draft Karnataka Apartment (Ownership and Management) Bill, 2026 seeks to create a unified legal framework governing apartment ownership, residents' rights and redevelopment of ageing housing societies. According to the Karnataka government, the legislation is intended to strengthen the rights of homebuyers while addressing issues that have emerged with modern apartment living.
The proposed law is currently in the consultation stage, with the government inviting suggestions from residents, welfare associations and other stakeholders before introducing it in the state Assembly.
Deputy Chief Minister D K Shivakumar, who also holds the Urban Development portfolio, said the proposed legislation is designed to protect apartment owners and ensure they enjoy complete ownership rights over their homes, reported Livemint.
Following a consultation with apartment owners, residents' welfare associations and stakeholders in Bengaluru, Shivakumar said owning a home is a lifelong aspiration for many families and buyers should have full ownership rights over their property.
"The Karnataka Apartment (Ownership and Management) Bill that we are introducing is not just a law, it is our government's priority to protect the interests of the middle class," he said in a post on X.
He added that public suggestions would be considered to make the proposed legislation "more people-friendly".
According to PTI, the proposed legislation will replace the Karnataka Apartment Ownership Act, 1972 and the Karnataka Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1972.
The state government believes the existing laws no longer adequately address the realities of modern apartment ownership, redevelopment and housing management.
The draft Bill proposes a single legal framework that covers apartment ownership, common areas, redevelopment and dispute resolution.
According to PTI, the proposed legislation will apply to apartment projects comprising more than eight units and place regulatory oversight under the Urban Development Department through a designated competent authority.
Among the major proposals are:
Clearer ownership rights over project land and common areas.
Mandatory structural stability certificates every five years for buildings older than 30 years.
A two-stage dispute resolution mechanism.
Deemed conveyance of common areas in older apartment projects.
A structured redevelopment framework requiring the consent of at least 75 per cent of apartment owners.
The draft Bill also proposes safeguards for residents who do not agree to redevelopment. According to PTI, such owners would be entitled to compensation of at least twice the prevailing market value of their property.
One of the most significant provisions relates to the redevelopment of ageing apartment buildings.
If the proposal becomes law, redevelopment projects would require approval from at least 75 per cent of apartment owners.
The government has also proposed a compensation mechanism for owners unwilling to participate, with the draft Bill providing for a minimum payout equivalent to twice the property's market value.
The measures are aimed at creating a clearer legal process for redeveloping ageing residential complexes while balancing the interests of consenting and non-consenting owners.
According to ANI, Shivakumar said the government plans to introduce the Bill during the Karnataka Assembly session beginning on August 6.
Before it is tabled, consultations will be held with leaders of political parties and Members of the Legislative Assembly to incorporate constructive suggestions.
The Deputy Chief Minister said the government wants to ensure apartment buyers do not face "trouble or confusion" during ownership and property transfer.
Referring to the state's Bhu Guarantee initiative, he said it would help ensure ownership rights are transferred to buyers.
According to ANI, Shivakumar also cautioned builders and developers against violating rules and invited apartment residents to share suggestions on the proposed legislation.
According to PTI, Bengaluru is home to more than 25,000 apartment buildings, housing an estimated 25 to 30 lakh flats.
In addition, around 60,000 to 75,000 flats were registered with the Karnataka Real Estate Regulatory Authority (KRERA) in Bengaluru Urban and adjoining areas over the past year.
Against this backdrop, the state government believes a modern legal framework is necessary to strengthen ownership rights, improve transparency, increase accountability and establish a more structured process for managing and redeveloping apartment complexes.
While the draft Bill is yet to become law, its provisions could significantly reshape apartment ownership and housing governance in Karnataka if approved by the state legislature.
