Karnataka to Enact Apartment Ownership Act via Ordinance, Signals Shift to Vertical Growth

Bengaluru, March 27: In a significant move that will impact lakhs of apartment residents across Karnataka, the state government has decided to promulgate the Karnataka Apartment Ownership and Management Act 2025 (KAOMA) through an ordinance. The announcement was made by Deputy Chief Minister DK Shivakumar during a debate on the city's development in the Legislative Assembly on Thursday.

The decision comes after prolonged demands from apartment residents and their federations for a comprehensive law to govern apartment ownership and management. The move signals a clear policy shift toward vertical growth, addressing the constraints of horizontal expansion in Bengaluru and other urban centers.

Key Highlights of the Announcement

Ordinance route: The government will issue an ordinance to bring the Act into force after discussions with stakeholders and legislators
Focus on vertical growth: Deputy CM acknowledged that there is no scope for horizontal growth, making vertical development the need of the hour
Enhanced transparency: The Act is expected to bring greater transparency and accountability for apartment residents
FAR incentives: The government is considering higher Floor Area Ratio (FAR) to promote self-contained urban communities

Government's Stance on Vertical Growth

Responding to concerns raised by BJP members, including Opposition Leader R Ashoka, Shivakumar acknowledged the long-pending demand for the apartment ownership law.

"If not for a few clarifications, we would have brought in the Act by now. Nevertheless, we will go ahead with an ordinance. But prior to that I will hold a meeting with Bengaluru MLAs and discuss some issues with you (Ashoka)," Shivakumar said.

The Deputy CM also emphasized the government's commitment to promoting vertical growth. "We have realized there is no scope for horizontal growth and vertical growth is the need for the hour. We will focus on vertical growth through the BDA, barring a few exceptional cases," he stated.

Support from Opposition and Industry

Senior BJP member CN Ashwath Narayan urged the government to promote vertical expansion given the city's land constraints. He noted that while such measures might appear to benefit builders, providing higher Floor Area Ratio (FAR) would actually help create self-contained urban communities.

The move was welcomed by the Bangalore Apartment Federation (BAF) , which has been advocating for such legislation.

Satish Mallya, President of BAF, said, "We thank both CM Siddaramaiah and DyCM DK Shivakumar for bringing the KAOMA discussion to a conclusion in the assembly. We believe this Act will usher in greater transparency, accountability and empowerment for millions of apartment residents across Karnataka."

Need for the New Act

The Karnataka Apartment Ownership and Management Act 2025 is intended to replace outdated laws that governed apartment ownership in the state. Key issues that the new Act is expected to address include:

Clear ownership rights: Establishing clear title and ownership rights for apartment owners
Association management: Streamlining the formation and functioning of apartment owners' associations
Dispute resolution: Providing mechanisms for resolving disputes between residents and promoters
Maintenance and common areas: Clarifying responsibilities for maintenance of common areas and facilities
Transparency in transactions: Ensuring transparency in the sale and transfer of apartment units

Implications for Bengaluru's Urban Development

Bengaluru, which has been facing severe land constraints for horizontal expansion, has increasingly turned to vertical development. The new Act is expected to provide the regulatory framework necessary to support this shift.

Key implications include:

Higher density development: Encouraging more efficient land use through increased FAR
Self-contained communities: Promoting mixed-use developments that integrate residential, commercial, and recreational spaces
Infrastructure planning: Aligning urban infrastructure with vertical growth patterns
Resident empowerment: Giving apartment residents greater control over their communities

Next Steps

Prior to issuing the ordinance, Shivakumar stated that he would hold a meeting with Bengaluru MLAs to discuss any remaining issues. The ordinance route allows the government to bring the Act into force without waiting for the next legislative session, providing timely relief to apartment residents.

Outlook

The enactment of KAOMA 2025 through ordinance represents a significant milestone for apartment residents across Karnataka. As Bengaluru and other cities in the state continue to grow vertically, the new law is expected to provide the legal framework necessary to ensure transparency, accountability, and effective management of apartment communities.

With the government's clear commitment to vertical growth, coupled with supportive policies such as increased FAR, Karnataka is positioning itself to address urban land constraints while improving the quality of life for millions of apartment residents. The coming weeks will see the ordinance issued, followed by its implementation across the state.