Karnataka’s real estate sector is undergoing a significant transformation, driven by a series of legislative reforms aimed at Visit official page enhancing transparency, accountability, and ease of doing business. As legal professionals, it’s crucial to understand these developments, as they will reshape property transactions and governance in the state.
- Digitization of Property Registration
The Karnataka government has introduced the Registration (Karnataka Amendment) Act, 2025, which mandates the online registration of government-allotted lands and property mortgages using digitized signatures of sub-registrars. This reform applies to land from agencies like the Bangalore Development Authority (BDA), rights issued by tahsildars, and loan pledges in nationalized banks. The move aims to streamline the registration process, reduce human interference, and curb illegal practices involving fake documents.
Mondaq
- Mandatory Registration of Powers of Attorney
In a bid to prevent misuse, the amendment to the Registration Act now requires the compulsory registration of any Power of Attorney (PoA) that authorizes the transfer of immovable property, whether with or without consideration. Additionally, the presenter of the PoA must produce proof that the executant is alive, ensuring that expired or revoked PoAs cannot be used fraudulently.
Mondaq
- Regularization of Unauthorized Land Use
The Karnataka Land Reforms and Certain Other Laws (Amendment) Bill, 2025 introduces provisions to regularize unauthorized land use. The period for regularizing unauthorized land use has been extended from 22 to 26 years. Notably, it exempts land conversion for agricultural land up to 2.00 acres used for establishing new industries and any land parcels required for setting up renewable energy projects. This exemption is designed to fast-track development in these sectors.
Mondaq
- Establishment of a Recovery Cell for Homebuyers
To address the issue of unpaid dues from builders, the Karnataka government is establishing a dedicated ‘Recovery Cell’ to enforce orders issued by the Karnataka Real Estate Regulatory Authority (K-Rera). This cell will be empowered to treat unpaid dues as arrears of land revenue, allowing for actions such as attaching properties of defaulting developers. As of May 31, 2025, over ₹724 crore remains to be recovered from more than 1,500 builders, with Bengaluru Urban accounting for ₹710 crore of the total dues.
The Times of India
- Regularization of Building Violations
The Karnataka Assembly has passed the Karnataka Municipal Corporations (Amendment) Bill, 2025, granting municipal commissioners the authority to regularize up to 15% of building violations upon payment of a penalty. This measure enables the issuance of occupancy certificates for previously illegal structures, closely mirroring the controversial Akrama-Sakrama scheme. While this move aims to address the issue of unauthorized constructions, it raises legal and public concern over its implications on urban planning and compliance.
The Times of India
- Implementation of Digital Land Reforms
Following Supreme Court directions, the Karnataka government is set to confiscate illegal layouts and launch digital land reforms. The long-standing complaint of farmers on podi, which is the subdivision of agricultural land, will be settled. The government aims to crack down on illegal residential layouts by confiscating them and implementing digital land reforms to ensure transparency and accountability in land transactions.
The New Indian Express
- Proposed Reforms for MSMEs and Renewable Energy Projects
The Karnataka Land Reforms and Certain Other Laws (Amendment) Bill, 2025 also proposes to do away with the conversion of agricultural land for the establishment of micro, small, and medium enterprises (MSMEs) up to two acres and for renewable energy projects. This exemption is designed to attract more investments in these sectors. Additionally, the bill proposes a penalty of ₹1 lakh for selling any agricultural land for non-agricultural purposes without getting such land converted or obtaining prior approval from the competent authority.
The Times of India
Implications for Legal Professionals
These reforms signify a paradigm shift in Karnataka’s real estate landscape. Legal professionals must stay abreast of these changes to effectively advise clients and navigate the evolving regulatory environment. The emphasis on digitization, transparency, and accountability presents both challenges and opportunities for legal practitioners in the state.
Conclusion
Karnataka’s upcoming legal reforms in the real estate sector are poised to bring about significant changes in property transactions and governance. As legal professionals, it’s imperative to understand these developments and their implications to provide informed counsel and adapt to the evolving legal landscape.
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