Karnataka govt approves occupancy certificate exemption for buildings on small plots in municipalities

The cabinet also decided to issue a notification under the Karnataka Municipal Corporations Act, 1976, to exempt buildings going up to three floors on plots with areas of 1,200 sq feet from obtaining an occupancy certificate, subject to the plan approvals for the buildings.

“Keeping in mind the convenience of the public, it is appropriate to exempt buildings of this scale from the requirement of obtaining an Occupancy Certificate,” the cabinet noted.

Greater Bengaluru Authority region OC exemption

Last month, the Karnataka government had issued a notification exempting small-scale residential buildings in the Greater Bengaluru area from obtaining occupancy certificates. The government order issued by the Urban Development Department provided relief to homeowners constructing residential buildings on plots up to 1,200 sq ft.

Under the directive, buildings with ground plus two floors or three floors constructed on plots not exceeding 1,200 sq ft within the Greater Bengaluru Authority (GBA) jurisdiction will not require occupancy certificates.

The exemption in Bengaluru was under Section 241(7) of the GBA Act, which came into force earlier this year. This section specifically empowers the government to “notify the category of building which shall be exempted from obtaining occupancy certificate”.

The Karnataka government has been deliberating decisions for creating “equal opportunities in all applicable laws regarding the functioning of local bodies across the state” for building possession certificates. The move is expected to benefit the construction sector, particularly small-scale residential projects.

According to official data, approximately 4,000 buildings on sites smaller than 1,200 sq ft receive plan approvals annually from Bruhat Bengaluru Mahanagara Palike zonal offices. Currently, building plan approvals are processed through the automated ‘Nambike Map’ system. Draft plans are provided the same day upon application, and the final plan approval is granted within 15 days.

According to government officials, the traditional occupancy certificate process involved extensive site inspections and comparative verification between constructed buildings and approved plans, creating a substantial workload for local body officers, leading to potential delays and a lack of transparency.

By eliminating the occupancy certificate requirement for small buildings, the government aims to reduce bureaucratic bottlenecks.

Existing buildings in GBA

Meanwhile, the Karnataka government has postponed a decision on providing electricity and water connections to existing buildings constructed without obtaining completion certificates and occupancy certificates. A large number of these buildings are in Bengaluru. Many buildings are in limbo as electricity and water supply agencies have refused to provide connections without these certificates following a December 2024 Supreme Court order that bars public utility providers from granting connections to unapproved structures.

Karnataka Chief Minister Siddaramaiah has directed officials to examine whether other states were uniformly implementing the apex court’s order. The chief minister’s office said that the state, while respecting court orders, must also find a solution to the problems faced by the public.

A meeting chaired by the state chief secretary with Siddaramaiah and senior ministers on October 8 remained inconclusive.

During a previous cabinet meeting, the state advocate-general had cited sections of the Greater Bengaluru Governance Act, which provides for exemptions for buildings without occupancy certificates. Section 241 of the Act allows the government to notify the category of buildings to be exempted from obtaining OCCs, the advocate-general said.

“The Government may notify a category of buildings which can be exempted if there is proper justification and application of mind for doing the same. There cannot be general exemption of any sort; it can only be for a category and based on cogent reasons, keeping in mind the larger public interest and orderly urban development,” the advocate-general said.

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