K'taka Deputy CM Announces Reforms With Unified Law For Apartment Buyers And Owners; Details Inside

Karnataka Deputy Chief Minister D K Shivakumar announced on Tuesday that the state government is actively working on a new, comprehensive law to safeguard the rights of apartment buyers and owners. The proposed legislation will not only abolish the existing Karnataka Apartment Ownership Act, 1972 but will also absorb the Karnataka Real Estate Regulation and Development (RERA) Rules, 2017. This step is expected to have a particularly positive impact on Bengaluru, where real estate activities with a focus on apartments are rampant.

During a session in the Assembly, Shivakumar highlighted the need for a uniform law applicable across all cities and towns in Karnataka. Currently, there is a fragmentation of legal frameworks, with the 1972 law governing apartment ownership and resident associations being registered under cooperative societies. In addition, the RERA rules, in effect since 2016, introduced another regulation. The Deputy CM expressed the government's intent to streamline these disparate laws into a single, cohesive legislation.

"At present, there's the 1972 law. Resident associations are being registered under cooperative societies. So, there are two separate departments. Then, there's RERA which came into effect in 2016. So, we want to abolish the existing laws and come out with a new one," Shivakumar explained.

The announcement came in response to a calling attention motion raised by Basavanagudi BJP MLA LA Ravi Subramanya, focusing on ensuring property ownership in Bengaluru. Subramanya shed light on the current practice where the construction of an apartment begins under one Parcel Identification (PID) number, only to be later divided based on the number of flats. The issue arises when portions of the land are retained by the original landowner, keeping the ownership of the entire property in their name.

"Resident associations should get the ownership of land. After 30-40 years, redevelopment can't be taken up because the land will still be in the name of the original owner. Also, some landlords are misusing this to obtain loans from cooperative banks. So, the registered associations should get ownership," Subramanya emphasized.

Responding to Subramanya's concerns, Shivakumar acknowledged the need for reform. He clarified that reputable developers, in compliance with RERA regulations, ensure a seamless transfer of documents to the respective associations. However, he admitted that there were instances of unauthorized and illegal developers exploiting the existing legal gaps.

"Regular developers do not do what Subramanya said after the implementation of RERA. I myself have built properties. We handover documents to the association. Only the unauthorized and illegal developers do this," Shivakumar asserted. He further revealed that the government has initiated a comprehensive mapping of property documents across Bengaluru, a step towards ensuring transparency and accountability in the real estate sector.

"The association should be the owner of the property. It's the right suggestion. We'll do it," Shivakumar affirmed, indicating the government's commitment to addressing the issues raised by Subramanya.

The proposed new law is expected to bring about a paradigm shift in the way apartment ownership is structured and managed in Karnataka. By consolidating existing regulations and closing legal loopholes, the government aims to provide a more robust and transparent framework for apartment buyers and owners.