Karnataka Government Plans Apartment Law Reform by 2025-End, Homebuyers Demand Clarity
The Karnataka government aims to finalize the new Apartment Act by the end of 2025. However, homeowners and apartment associations have expressed concerns over the prolonged delay in replacing the Karnataka Apartment Ownership Act (KAOA), which they argue is inadequate in addressing ownership and maintenance issues.
According to Uma Shankar SR, Additional Chief Secretary, the process of drafting the new legislation is underway. A second-cut draft has been prepared and revised, and it will soon be submitted to the relevant departments, ministers, and Deputy Chief Minister DK Shivakumar. While there is no fixed deadline, the government aims to finalize the law within this year.
The draft legislation draws from similar laws in states such as Tamil Nadu, Maharashtra, and Telangana. The objective is to create a structured legal framework that clarifies the rights and responsibilities of apartment owners, associations, and developers.
Concerns from Homeowners and Associations
Apartment owners and associations have raised concerns over land ownership rights. Under the current law, builders retain ownership of the undivided land on which apartments are constructed, often failing to transfer it to residents' associations. This lack of clarity has led to legal disputes and multiple cases being filed with the Real Estate Regulatory Authority (RERA), civil courts, and the high court.
Surendra, a representative of the Karnataka Home Buyers’ Forum, noted that homeowners had expected the government to table the bill during the winter session. He pointed out that during the February 2024 legislative session, the Deputy Chief Minister announced plans for a new apartment law, but no concrete steps have been taken toward implementation. He questioned why the government has not yet released the draft for public review.
Anil Kalgi, a member of the Bangalore City Flat Owners’ Association, stated that even the draft version of the new law does not address key concerns. According to him, the draft largely mirrors the existing law and lacks clarity on the roles and responsibilities of apartment owners’ associations.
Key Features of the Proposed Legislation
Government officials have defended the draft, stating that it seeks to bring more clarity to apartment ownership and management. The proposed law defines the rights and responsibilities of residents, associations, and promoters. It also addresses contentious issues such as:
- Registration of apartment associations
- Ownership and transfer of land titles
- Definitions of common and private areas
- Roles of developers, associations, and individual owners
Mr. Uma Shankar emphasized that the objective is to eliminate ambiguities that have persisted under the existing law.
Challenges in Implementation
While the government intends to move forward with the legislation, the slow progress has raised concerns among stakeholders. Legal experts suggest that a comprehensive consultation process with homebuyers, associations, and legal professionals is essential to ensure that the new law is effective and enforceable.
The delay has also had financial and administrative implications for homeowners. Many apartment complexes face challenges related to maintenance, land ownership disputes, and regulatory compliance due to the gaps in the current legal framework.
As the government works toward finalizing the legislation, apartment owners and associations are demanding more transparency in the drafting process. They seek a clear timeline for implementation and opportunities for public consultation to ensure that the new law effectively addresses their concerns.
With an increasing number of apartment complexes being developed in Bengaluru and other cities in Karnataka, a well-defined legal framework is essential to protect the rights of homeowners and ensure smoother management of residential communities. The coming months will be crucial in determining whether the proposed Apartment Act meets these expectations.
