Karnataka Apartment Bill 2026: Builders To Pay Maintenance For Unsold Flats, Documents Within 60 Days

Karnataka’s Apartment Bill 2026 proposes mandatory association registration, maintenance payments by builders for unsold flats and handover of project documents within 60 days of the Occupancy Certificate. The bill also proposes fines for violations.

The Karnataka government on Thursday tabled a new bill in the Assembly aimed at protecting the rights of apartment owners and bringing greater accountability to builders and apartment associations. The Karnataka Apartment (Ownership and Maintenance) Bill, 2026, seeks to establish clear rules governing apartment ownership, maintenance, association registration, builder responsibilities and the management of common areas. The bill was introduced by Krishna Byre Gowda, Minister for Greater Bengaluru Development, even as Opposition members created a ruckus in the House while demanding the resignation of Minister B Nagendra.

The proposed law will apply to projects with more than eight apartments in one or more buildings. This includes villas approved under the Karnataka Town and Country Planning Act, 1961. It will also cover projects with more than eight apartments developed on sites within an approved layout.

Association Registration Is A Must

A key provision of the bill is the mandatory registration of apartment owners' associations. The proposed law covers various aspects, including the formation of associations, ownership rights, builder responsibilities and monthly maintenance charges.

Once the bill becomes law, every apartment complex, whether old or new, will have to register its association with the competent authority.

All Documents Must Be Handed Over Within 60 Days

According to the bill, every apartment owner will automatically receive a proportional undivided share (UDS) in the land and common areas.

Builders or project promoters will have to hand over all project-related documents to the apartment association within 60 days of receiving the Occupancy Certificate (OC). These documents will include approved plans, warranties, maintenance agreements, the corpus fund and other relevant records.

The association will also have the authority to recover pending maintenance charges, along with applicable interest.

Builders To Pay Maintenance For Unsold Flats

One of the key provisions for apartment residents is that builders will have to pay maintenance charges for flats that remain unsold.

The bill states that maintenance charges should be calculated based on the super built-up area of each apartment. However, additional charges may be levied for special services used by individual residents.

If an owner wants to sell their apartment, they will first have to obtain a 'no dues' certificate from the association.

The bill also proposes that any major structural changes, redevelopment or modifications affecting the number or size of apartments will require the consent of at least 75% of the apartment owners.

Association Committee Term Capped At Two Years

The bill provides for the registration of apartment owners' associations. For existing projects, associations will have to apply for registration within three months of the law coming into force.

The competent authority will then have 60 days to register the association and issue a certificate.

The term of an association's executive committee will be capped at two years. Further, anyone who has served two consecutive terms will not be eligible to contest an election or be nominated for the immediately following term.

A 'Competent Authority' To Be Formed

To oversee the implementation of the proposed law, a 'Competent Authority' will be established within three months.

The authority will comprise an officer from the local or planning authority who is not below the rank of a 'B' grade officer. It will oversee the registration, functioning and financial affairs of apartment owners' associations.

The authority will also have the power to investigate complaints and direct builders, apartment owners or associations to pay fines or outstanding dues in cases of violations.

Fines Of Up To ₹1 Lakh For Violations

The bill proposes penalties for violations of its provisions. Builders who fail to submit the required declaration, assist in forming an apartment association or hand over an apartment without the required authority certificate may face a fine of up to ₹1 lakh.

If the violation continues, an additional fine of up to ₹1,000 per day may be imposed.

For other violations by builders, apartment associations or owners, the competent authority may impose a fine of up to ₹20,000 per violation, either based on a complaint or on its own initiative. If the violation continues, an additional fine of up to ₹1,000 per day may be imposed.

If a person fails to pay the fine, the amount may be recovered in the same manner as property tax or land revenue arrears.

State-Level High-Powered Committee

The bill also proposes the formation of a state-level Karnataka State Consultation and Advisory Committee, comprising representatives of apartment owners' associations and government officials.

The committee will advise the government on issues faced by apartment owners and recommend possible legal and policy solutions.

The state government will appoint the chairman of the committee.

If enacted, the proposed Karnataka Apartment (Ownership and Maintenance) Bill, 2026, could introduce a more structured framework for apartment ownership and maintenance across the state, while setting out clearer responsibilities for builders, apartment associations and individual flat owners.