Karnataka's New Apartment Bill Proposes Federations to End Disputes in Large Complexes

The Karnataka government has introduced a draft Bill aimed at resolving the long-standing issue of managing multiple associations within a single apartment complex. The Karnataka Apartment (Ownership and Management) Bill, 2026, proposes the formation of federations of apartment associations to streamline the administration of common areas and shared infrastructure in large residential projects.

The draft Bill was presented by the Urban Development Department (UDD) at a stakeholder meeting in July. Several participants at the event raised concerns about frequent disputes in complexes with multiple towers or phases, particularly over maintenance charges, the use of common areas, and the overall management of shared facilities.

Naveen, a member of an apartment association in south Bengaluru, said residents often clashed over financial matters. “Especially with the financial aspect, deciding who collects the maintenance charges and who oversees them was a problem,” he said. He added that while some complexes already have federations, their operational structure and jurisdiction have not been clearly defined, which the new Bill seeks to address.

The Bill lays down a detailed legal framework for the formation, registration, and functioning of federations. It treats a federation as a higher-level body responsible for managing infrastructure shared by multiple apartment associations. For projects implemented in phases, the Bill mandates the creation of separate apartment associations for each phase. These associations may then form a federation to jointly manage common infrastructure across all phases or towers. In mixed-use developments that include residential, commercial, or Economically Weaker Section (EWS) units, separate associations may also be created.

The role of the promoter is also emphasised. Where separate associations exist, the promoter must clearly identify which common areas belong to individual associations and which facilities are to be managed jointly through the federation. This clarity is expected to reduce ambiguity and potential disputes at the outset.

The federation must be registered with the competent authority, which is the UDD. The application must include prescribed documents. If the UDD is satisfied that the federation and its bylaws comply with the provisions of the new Act and the Real Estate Regulatory Authority (RERA) guidelines, it must issue a registration certificate within 60 days. Once registered, the federation becomes a body corporate with perpetual succession, capable of suing and being sued.

Federations that were in existence before the Act comes into force will automatically be deemed to have been constituted under the new law. However, they will have to comply with the provisions of the Act and the rules framed under it within a prescribed period.

The Bill also addresses how maintenance expenses should be shared. Where a federation exists, it can assess expenses incurred for maintaining collective common areas and shared community facilities. These expenses are apportioned among member associations based on the aggregate Super Built-up Area of apartments within each association relative to the total Super Built-up Area covered by the federation, subject to the provisions of the Act and its bylaws.

This move is expected to bring clarity and legal certainty to large residential complexes, which have often struggled with multiple associations having overlapping or unclear responsibilities. By creating a structured hierarchy through federations, the Bill aims to reduce conflicts and promote smoother governance of common amenities. The draft is now open for public feedback before it is finalised and placed before the state legislature.