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Disengaging bureaucratic gridlock – small and medium-sized residential properties exempted from requiring an occupancy certificate in the State of Karnataka
Homeowners of small and medium sized residential buildings who had put up constructions over the last couple of years were required to mandatorily obtain an occupancy certificate from the relevant municipal authorities prior to receiving utility connections such as electricity, water and sewerage. This strict measure was implemented by the State Government to ensure that every building constructed within municipal limits were constructed in accordance with the approved building plan. But several buildings that were constructed with deviations did not qualify to receive an occupancy certificate and therefore could not receive any of the public utility connections and were deprived of occupying their homes.
On June 22, 2026, Government Order No. ANG-556-EEB-2026, the Government of Karnataka issued an order with respect to granting relief to homeowners of residential buildings measuring up to 2400 (two thousand four hundred) square feet, who have not been managed to obtain an Occupancy Certificates (“OC”). The relief is intended to ease regulatory burdens for small homeowners and resolve a severe backlog of pending electricity connections across the Greater Bengaluru Authority (“GBA”) limits. The relaxation is explicitly designed for small and mid-scale properties built on plots of up to 2,400 (two thousand four hundred) square feet .
Most local or State level legislations prescribe a mandatory regulation for the procurement of an OC before the same is occupied. It is often a mis-conceived notion that an OC is not required for residential occupation or for residential buildings that do not exceed a height of 15 (fifteen) meters.
The term OC is specifically defined in the Real Estate (Regulation and Development) Act, 2016 to mean an occupancy certificate, or such other certificate by whatever name called issued by the competent authority permitting occupation of any building, as provided under local laws, which has provision for civic infrastructure such as water, sanitation and electricity.
Section 310 of Karnataka Municipal Corporations Act, 1976 stipulates a detailed process of procuring a completion certificate. Within 1 (one) month of completion of construction of a building or any part thereof, the applicant is required to file an application in the prescribed format with supporting documents and enclosures and facilitate the inspection of the constructed building and towards granting of the OC.
In Bangalore, the GBA (which took over from the Bruhut Bengaluru Mahanagara Palike) handles the grant of OCs for constructions within municipal limits, the Bangalore Development Authority (“BDA”) issues them for properties in BDA-approved layouts. For developments in other areas, the OCs are issued by the relevant notified authority. Issuance of OC certifies that a building or property has been constructed according to approved plans, adheres to safety and building regulations, and is fit for occupancy.
When buying or constructing a property in Bangalore, obtaining an OC plays a crucial step in the journey towards legal possession and use. As it lucidly certifies that the constructed residential building is structurally safe, complies with sanctioned plans, and is fit for possession. Whether as a homeowner, investor, or builder, understanding the importance, process, and legal implications of the OC can mitigate potential risks. Ownership of the residential buildings without an OC may lead to legal complications like eviction notices, utility disconnections, demolition risks.
Applicable exemptions and qualification
The exemption applies to the small and medium residential properties measuring up to 2,400 (two thousand four hundred) square feet, with a permissible height of Ground plus 3 (three) floors or Stilt Parking plus 4 (four) floors. A 20 % structural variation/deviation is permitted, effectively extending the plot-size threshold to approximately 2,880 (two thousand eight hundred and eighty) square feet.
Structural variation/deviation is calculated on the percentage of the total approved built-up area and horizontal spatial metric.
For a building to qualify for the above exemption, the construction of the building must have been completed, and the application for electricity connection should be submitted, on or before May 31, 2026.
Conclusion
The OC exemption strikes a balance between regulatory efficiency and safety by reducing procedural burdens and compliance costs for approved small and medium-sized residential buildings, while continuing to require adherence to sanctioned plans and applicable building norms. Given that the exemption is expressly confined to small and medium-sized residential buildings measuring up to 2400 (two thousand four hundred) square feet. and does not extend the benefit of exemption to industrial or commercial buildings.
Overall, the exemption of an OC is intended to facilitate the timely occupation and utilisation of approved small and medium-sized residential buildings homeowners and small builders to secure permanent electricity and water connections immediately and to afford regulatory relief to property owners and occupants falling within the prescribed limit, without waiting for the lengthy final inspection and OC issuance process.
This Prism has been prepared by:
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Gerald Manoharan |
Namratha Dwarkanath |
For more details, please contact km@jsalaw.com.
