The Karnataka state government has introduced significant amendments to the Karnataka Rent Control Act, 1999, decriminalizing rental disputes while imposing higher financial penalties. Under the revised provisions, nine clauses of the Act now carry fines instead of criminal charges, aiming to create a more balanced rental ecosystem.
The amendments target key areas including unauthorized subletting, illegal evictions, falsification of property details, and failure to register real estate agents or middlemen with state-appointed rent controllers. Tenants who sublet, assign, or transfer possession of any part or all of a premises in violation of the law may now face penalties of up to ₹50,000 or double the rent received for subletting per month until the violation ceases, whichever is higher. Previously, similar violations carried a fine of ₹5,000 or double the rent, along with potential imprisonment of up to one month.
Landlords who unlawfully evict tenants, even when courts have ordered re-letting to the original occupants, are now subject to comparable penalties. Prior provisions allowed for fines of ₹5,000 or double the rent collected after re-letting and/or imprisonment. The new amendments remove the imprisonment clause and substantially increase the fines to ₹50,000 or double the rent, whichever is higher.
The cabinet approved the changes last week, and they are expected to be tabled during the winter session of the legislature in Belagavi. Officials say removing imprisonment is intended to reduce fear and prevent misuse of the law, while substantial monetary penalties are designed to deter violations effectively.
The amendments also extend to real estate agents and middlemen who fail to register with the rent controllers. The law now prescribes a daily fine of ₹20,000 until compliance, replacing previous provisions that could include imprisonment.
Assistant commissioners in municipal areas and tahsildars in urban and rural regions have been designated as rent controllers responsible for enforcing the Act. They will monitor compliance, address complaints, and ensure penalties are applied fairly across both tenants and landlords.
Real estate experts have welcomed the changes. Amit Agarwal, Co-founder and CEO of NoBroker, noted that the amendments strike a fair balance by protecting the interests of both landlords and tenants. He explained that removing imprisonment reduces fear and the risk of misuse of the law, while substantial fines discourage tenants from subletting or misusing properties and prevent landlords from carrying out unlawful evictions. Agarwal added that this approach could motivate more landlords to rent out their properties, helping address vacancies caused by previous negative experiences.
The amendments align Karnataka with the central government’s Jan Vishwas Act, 2025, which decriminalized minor offences, replacing imprisonment with penalties and warnings. The state has followed this approach to create a more secure and predictable rental market, experts say.
The move comes amid growing concerns over misuse of rental laws in Bengaluru and other cities, where disputes often led to prolonged litigation or imprisonment threats. The new law aims to simplify compliance, deter illegal practices, and promote responsible tenancy arrangements across urban and semi-urban areas.
For tenants, the revisions mean lower risk of criminal proceedings for minor infractions, while for landlords, the changes provide stronger enforcement tools against unlawful subletting and evictions. Industry stakeholders expect that the amendments will gradually stabilize the rental market, increasing confidence among property owners and tenants alike.
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