Flat owners in Karnataka have urged the State Government to implement clearer laws regarding the title, ownership, and maintenance of group housing properties. They highlight that builders are not transferring ownership of undivided land to flat owners' associations, allowing them to mortgage the land and construct new structures. The Bangalore Apartments Federation and other associations have appealed to Deputy Chief Minister DK Shivakumar for updates to the Karnataka Apartment Ownership Act (KAOA), 1972. Legal experts and owners cite gaps in KAOA, KOFRA, and RERA laws and demand amendments to ensure proper transfer of ownership and formation of owners' associations.
Amid growing uncertainty over the lack of a clear legal framework regarding the title, ownership, and maintenance of group-housing residential properties, flat owners have urged the state government to implement more definitive laws to address their concerns. Associations of flat owners have highlighted that, in the absence of proper legislation, builders are not transferring ownership of the undivided land on which the apartments stand to the flat owners' associations. This loophole has allowed builders the flexibility to mortgage the land, construct new structures, and even claim compensation when parts of the property are acquired.
The Bangalore Apartments Federation (BAF) recently appealed to Deputy Chief Minister DK Shivakumar to expedite measures to update the existing laws. Vikram Rai, President of BAF, highlighted significant gaps in property and ownership rights under the Karnataka Apartment Ownership Act (KAOA), 1972. He emphasised the need to address these gaps, noting that despite representing the issue to the government last year, no committee with experts has been formed to resolve it. Rai mentioned that the Deputy CM had committed to forming such a committee after completing a survey, but a year later, no progress has been made. Rai expressed concern over the delay and reiterated the Deputy CM's acknowledgment of the issue and assurance to investigate further.
Legal experts and flat owners' associations have expressed frustration over certain groups benefiting from the multiple existing laws regarding ownership and maintenance of properties. They argue that the government's hesitation to clarify the situation has exacerbated the issue. In Karnataka, at least three laws pertain to this matter: the Karnataka Apartment Ownership Act (KAOA), 1972; the Karnataka Ownership Flats (Regulation of the Promotion of Construction, Sale, Management, and Transfer) Act (KOFRA), 1972; and the Real Estate (Regulation and Development) Act (RERA), 2016.
Anil Kalgi, Secretary of the Bangalore City Flat Owners' Association (BCFOA), pointed out the regulatory gaps in the Karnataka Apartment Ownership Act (KAOA), noting that while it mentions the owners' association, it lacks specific guidelines on establishing this body or transferring undivided land to it. Kalgi contrasted this with provisions in KOFRA and RERA, which mandate that flat owners' associations must be registered under the Co-operative Societies Act or Companies Act. Additionally, these laws require the transfer of ownership of undivided land to the association within a specified timeframe, providing clarity and legal framework which KAOA currently lacks.
In its representation to the Deputy Chief Minister, the BAF reported receiving numerous complaints about conflicts and legal disputes involving builders, homeowners, Resident Welfare Associations (RWAs), and various statutory bodies/regulators. These complaints underscore the lack of clarity regarding ownership issues.
Srinivas, President of BCFOA, emphasised to the Times of India the need for amendments to the Karnataka Apartment Ownership Act (KAOA), advocating for the inclusion of a chapter detailing how apartment owners' associations should be formed and how undivided land should be transferred to these associations.
MS Shankar, General Secretary of the Forum for People Collective Efforts (formerly known as Fight for RERA), criticised RERA-Karnataka, highlighting that the agency has not convened any review meetings with stakeholders since 2017. He pointed out that this lack of engagement has contributed to flawed implementation of the RERA legislation, resulting in challenges for flat buyers.
The call for a clearer legal framework aims to resolve ongoing issues and provide flat owners with the legal security needed to protect their investments and rights.
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