Having been discussed with apartment owners’ associations in Bengaluru, the proposed legislation seeks to replace the Karnataka Apartment Ownership Act of 1972 and the Karnataka Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act of 1972, which the government believes do not adequately reflect the current realities of apartment living and are misaligned with the Real Estate (Regulation and Development) Act (RERA), 2016.
The government noted that Bengaluru alone hosts over 25,000 apartment buildings, housing approximately 25-30 lakh flats. In the past year, around 60,000-75,000 flats have been registered with KRERA in Bengaluru Urban and surrounding areas, highlighting the need for a modern legal framework.
Key features of the Bill include its applicability to apartment projects with more than eight units, with enforcement overseen by the Urban Development Department via a designated competent authority. It aims to clarify that ownership of project land and common areas belongs to apartment owners while restricting associations to roles concerning management, maintenance, and administration.
Additionally, the Bill defines private areas, super built-up areas, and the calculation of undivided shares. It mandates structural stability certificates for buildings older than 30 years every five years, introduces a two-stage dispute resolution mechanism with appellate powers equivalent to a civil court, and ensures deemed conveyance of common areas in older apartment projects where transfers have not been completed. It also establishes a legal framework for redevelopment, requiring the consent of at least 75% of owners and compensation of no less than twice the market value for those who do not consent.
The proposed law, according to the government, aims to protect ownership rights, guarantee that ownership of common facilities resides with apartment owners, enhance financial transparency, establish accountability among developers, associations, and apartment owners, offer an effective dispute resolution process, and facilitate transparent redevelopment of structurally unsafe buildings.
