Draft Karnataka Apartment Bill Sparks Debate Over Common Area Land Titles in Bengaluru

The recent release of the draft Karnataka Apartment Ownership and Management Bill, 2025 (KAOMA) by the state government has sparked division and concern among apartment owners and stakeholders in Bengaluru. While some home buyer groups argue that parts of the draft legislation are inconsistent with central real estate laws, the Bangalore Apartments' Federation (BAF) has defended the proposed bill as a transformative step.

Dhananjay Padmanabhachar, Convenor of the Home Buyers Forum, raised concerns that the draft bill conflicts with Section 17 of the central Real Estate Regulatory Authority (RERA) Act. Under RERA, common area land titles must be transferred to the association of allottees. However, the draft KAOMA proposes transferring these titles to individual flat owners, which Padmanabhachar described as impractical and unlikely to withstand judicial scrutiny.

Padmanabhachar also noted that the draft's provision for "deemed conveyance" repeats an unimplemented section from the Karnataka Apartment Ownership Act of 1972. He warned that without proper land transfer mechanisms, the new act would have no real value. Additionally, he criticized the proposal of one competent authority and two appellate authorities with civil court powers, stating it could create jurisdictional overlap and prolong dispute resolution instead of strengthening RERA's existing framework.

Conversely, the Bangalore Apartments' Federation has strongly defended the draft bill. Satish Mallya, President of BAF, stated that the draft legislation represents one of the most significant legal reforms for apartment living in Karnataka in over five decades.

According to Mallya, the bill establishes that every apartment owner has an undivided and transferable ownership interest in the project land and common areas. This protects shared facilities like clubhouses, parks, basements, and sewage treatment plants from unauthorized sale or conversion without the consent of the owners.

Mallya also highlighted that the bill mandates the timely transfer of project documents, maintenance deposits, and corpus funds from promoters to the Apartment Owners' Association (AOA). Furthermore, it ensures promoters remain responsible for structural defects under RERA even after handing over management, while providing statutory recognition to AOAs to strengthen democratic self-governance.