Karnataka Assembly Clears Key Land, Property Bills to Ease MSME, Renewable Energy Projects

Karnataka Assembly passed bills enabling auto-conversion of land for MSMEs, renewable energy, and digitised property registration to boost ease of doing business.

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The Karnataka Assembly passed nine bills, including a significant amendment to the state’s land laws aimed at simplifying real estate use for micro, small, and medium enterprises (MSMEs) and renewable energy projects.

The Karnataka Land Reforms and Certain Other Law (Amendment) Bill, 2025, piloted by Revenue Minister Krishna Byre Gowda, introduces “auto-conversion” provisions that will permit the use of up to two acres of agricultural land for new MSMEs without undergoing the formal conversion process. The bill also removes the requirement for conversion when agricultural land is used for renewable energy installations.

To deter misuse, the legislation imposes a penalty of ₹1 lakh for selling agricultural land for non-agricultural purposes without conversion or prior approval from the competent authority. It also deletes the earlier clause prescribing up to three years’ imprisonment and a ₹10,000 fine for such violations, replacing it with the monetary penalty alone.

Alongside the land reforms, the Assembly passed the Registration (Karnataka Amendment) Bill, 2025, aimed at modernising and securing the property registration process. The bill reduces manual intervention by allowing digital signatures for approvals, mandates due diligence by Sub-Registrars during property registration, and provides for the integration of property software systems. Officials said the integration would help curb illegal registrations in urban areas and streamline property transactions.

The House also approved amendments to laws governing several development and heritage authorities, including those for Basavakalyan, Kaginele, Nadaprabhu Kempegowda Heritage Area, Kittur, Kudala Sangama, Banavasi, and Sarvajna Kshetra. The changes allow the Chief Minister, Revenue Minister, or any minister designated by the Chief Minister to serve as chairman of these bodies. Gowda said the shift was necessary as the Chief Minister, who currently holds all these positions, is often unable to devote adequate time to each authority due to administrative workload.

In addition, the government tabled the Greater Bengaluru Governance (Amendment) Bill, 2025, which seeks to provide clearer definitions of the functions and responsibilities of the Greater Bengaluru Authority. The bill will be taken up for discussion in the coming days.

Officials maintained that the combined legislative measures are designed to support economic activity, promote ease of doing business, and strengthen governance structures across Karnataka. While the MSME and renewable energy provisions are expected to facilitate faster project initiation, the property registration reforms aim to enhance transparency and protect public interest in real estate transactions.

Image source- telegraphindia.com


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