Karnataka to bring major amendments to Rent Control Act

The Karnataka government plans major amendments to the Rent Act, 1999, introducing steep penalty hikes for subletting and unregistered brokers, market-based rent regulation, eviction notice requirements, and a fast-track dispute resolution system to ensure fairness for tenants and landlords

Bengaluru: The Karnataka government is preparing significant amendments to the Karnataka Rent Act, 1999, aimed at regulating high rents, curbing violations, and ensuring fairness for both tenants and landlords. Under the proposed changes, penalties for breaching provisions will see a substantial hike, impacting both parties in rental agreements.

One key change is the sharp increase in fines for tenants who sublet rented properties without the landlord’s consent. The penalty will rise from the current Rs. 5,000 to Rs. 50,000 — a tenfold increase. Similarly, landlords who knowingly allow unauthorised subletting will face fines increased from Rs. 3,000 to Rs. 30,000. The focus is on imposing heavier monetary penalties rather than imprisonment for such violations.

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The proposal, approved by the committee headed by Law and Parliamentary Affairs Minister H K Patil, is expected to be tabled in the upcoming Legislative Assembly session. Officials say the move is in response to the rising number of rental disputes in urban areas like Bengaluru, where demand for housing is high and disagreements between landlords and tenants are becoming more frequent.

The amendments will also target unauthorised real estate brokers. Under Section 20 of the Act, brokers operating without registration will face fines of Rs. 25,000 per day, up from Rs. 2,000. Repeat offenders will be charged an additional Rs. 20,000 per day.

To bring transparency and reduce disputes, the government has launched an online portal for registering rental agreements. This step aims to curb the widespread practice of informal, undocumented rental arrangements, especially in cities.

The government is considering fixing rents based on prevailing market rates to ensure fair returns for landlords while preventing sudden, steep rent hikes that hurt tenants. Landlords will also be required to give adequate notice before evicting tenants.

To encourage affordable rentals, the government is exploring tax exemptions and subsidies for landlords offering low-rent housing. This is expected to improve the supply of budget-friendly homes in urban markets.

The amendments propose a fast-track mechanism to resolve rental disputes quickly, reducing the burden on regular courts and ensuring speedy justice for both parties.

Officials believe these measures will modernise Karnataka’s rental housing sector, balance the rights and responsibilities of landlords and tenants, and promote a fair, transparent rental market.