Dispute With Your Association or Builder? Where Bengaluru Apartment Cases Will Go Under the New Law

Two years. That is how long Karnataka's new apartment law gives the State Government, from commencement, to set up an online portal for declarations, associations and applications. Until then, and after, the law sends most apartment disputes in Bengaluru to a new forum: a Competent Authority with the powers of a civil court, and away from the civil courts themselves.

The rules are in sections 38 to 46, 53, 54 and 60 of the Karnataka Apartment (Ownership and Management) Bill, 2026. FoxMandal's 16 October update says the law was gazetted on 15 October 2026 as Act No. 45 of 2026 and is not yet in force. Our overview of the Act sets out its scope.

The short answer. Under the bill, an owner or association can refer disputes under the Act, rules, declaration or bye-laws to the Competent Authority, including association penalties, maintenance charges, undivided share, and the association's functioning and finances. The authority can inquire, enter premises after notice, summon witnesses, call for documents, pass interim orders and recover dues as arrears of land revenue or property tax. Appeals go to a First and then a Second Appellate Authority. Civil courts lose jurisdiction over matters the authorities can decide, and no injunction can be granted against action under the Act. The trade-off: a dedicated forum with its own appeals replaces the civil suit for these disputes, but until the authorities are appointed and rules framed, there is no new forum to go to.

What disputes can the Competent Authority decide?

Section 53(1) lets any apartment owner or association refer to the Competent Authority any dispute about rights, duties, obligations, liabilities or privileges under the Act, rules, declaration or bye-laws. Section 53(3) lists examples: penalties or actions taken by the association against an owner; the rights and duties of the promoter, association or owners; the calculation of undivided share and matters in the declaration; disputes between the association and others over maintenance charges; the association's constitution, functioning, management or finances; and any other dispute about use or management of apartments or common areas.

Penalty proceedings against a promoter under section 52(1), for example for failing to file the declaration or to facilitate the association, can start on a complaint by the association's secretary, a person authorised by its executive committee, any aggrieved owner, or on the authority's own motion. And under section 43, where at least two-thirds of owners ask in writing, the authority may, with the First Appellate Authority's approval, take over a failing association's functions for a set period.

Section 53(2) says the authority may examine the complaint, call for information, hold an inquiry or have one held, and pass orders after hearing the parties.

What powers will the Competent Authority have?

Section 39 lets it require information or documents from any promoter, association or owner, on complaint or on its own, and inquire into a project, including the association's constitution, working and finances. It can appoint persons to inquire, enter any apartment at reasonable hours after notice to check compliance, issue directions, impose penalties or interest, order payment of maintenance dues, and order recovery of amounts due.

Section 41 gives it the powers of a civil court to summon and examine witnesses on oath, require documents and issue commissions. Under section 41(3), where a contravention is continuing or about to happen, it can issue interim orders, including restraining a promoter, owner, association or office-bearer, and in urgent cases without prior notice, subject to a hearing afterwards. Section 41(6) lets amounts due under its orders be recovered as arrears of land revenue or property tax.

Section 59 deems the Competent Authority, the First and Second Appellate Authorities and their officers to be public servants under the Bharatiya Nyaya Sanhita, 2023. Section 41(4) says every order or direction of the Competent Authority binds the promoter, association, owner or other person it is addressed to, and section 41(5) lets it enforce non-compliance in a manner to be prescribed.

What would a typical dispute look like?

Take an illustration of our own. An owner whose monthly maintenance is Rs 6,000 falls behind, and the association levies a Rs 18,000 penalty. Section 25(2) of the bill caps the penalty for non-payment at the monthly maintenance charge, which here is Rs 6,000. The owner could refer the dispute to the Competent Authority under section 53(3)(a), which covers penalties or actions taken by the association against an owner.

Timing matters. Section 26(3) sets a limitation of six months from when a dispute arises for disputes under section 25, and section 26(4) sets two years from when dues became payable for an association's application to record a charge for unpaid dues. After hearing both sides, the authority could pass an order, and either side unhappy with it would have thirty days to appeal to the First Appellate Authority. The figures here are illustrative; the outcome in any real case would depend on the facts and the bye-laws.

The same route works the other way. An association that cannot collect dues may apply under section 20(7) for a recovery order, which section 41(6) makes recoverable as arrears of land revenue or property tax.

How do appeals work?

Section 44 provides a First Appellate Authority, an officer of the local or planning authority not below Group-A Junior Scale, to be appointed within three months of commencement. An appeal must be filed within thirty days of the order, though late appeals may be admitted for sufficient cause, and should be disposed of within ninety days as far as practicable. Section 45 provides a Second Appellate Authority, not below Group-A Senior Scale, for appeals from the first.

Section 46 lets both appellate authorities call for records, examine legality and propriety, confirm, modify or set aside orders, and pass interim orders including stays or injunctions pending appeal.

Can you still go to a civil court?

Not for matters the new authorities can decide. Section 60(1) says no civil court shall have jurisdiction to entertain any suit or proceeding in respect of any matter the Competent Authority or the Appellate Authorities are empowered to determine. Section 60(2) says no injunction shall be granted by any court or authority against action taken or to be taken under the Act.

This sits alongside the RERA route for disputes with a promoter over a registered project, which we explained in our guide to the RERA complaint process. Section 64 of the bill says the Act is in addition to, and not in derogation of, other laws.

What records will be public?

Section 40 requires the Competent Authority to register and supervise associations, keep a register of declarations and approve bye-laws. Section 40(f) requires it to establish and maintain a publicly accessible electronic registry of registered associations, declarations, bye-laws and other prescribed information, and section 40(g) requires a register of each apartment's undivided interest in land and common areas.

Section 54 requires the Government, within two years of commencement, to set up an online portal for submitting and processing applications, keeping digital records of declarations and associations, and giving access to information about registered projects and associations. Section 47 also allows a State-level Karnataka State Consultation and Advisory Committee, with representatives of owners' associations, to advise the Government.

What should Bengaluru owners do while the law beds in?

Whether you live in an established community or are buying in a project such as KGF Ecity Crest in Electronic City, these steps help you use the new route well:

1. Keep copies of the declaration, bye-laws, your deed and maintenance receipts, since disputes will turn on them.
2. Raise disagreements with the association in writing first, and keep the replies and meeting minutes.
3. Check whether your issue is one section 53(3) lists, such as maintenance or undivided share.
4. For delays or defects by the promoter in a registered project, note that RERA remains available.
5. Track the thirty-day appeal window from the date of any order against you, and diarise it immediately.
6. Watch for the appointment of the Competent Authority and appellate authorities after commencement.
7. Use the public registry and online portal, once live, to check declarations and association records.

Frequently asked questions

Where will apartment association disputes go in Bengaluru under the new law?

Section 53 of the bill lets an apartment owner or association refer disputes under the Act, rules, declaration or bye-laws to the Competent Authority, including penalties imposed by the association, maintenance charges, undivided share, and the association's constitution, functioning and finances.

Can I file a civil suit over an apartment association dispute after the Act starts?

Section 60 of the bill says no civil court shall have jurisdiction over any matter the Competent Authority or the Appellate Authorities are empowered to determine, and no court or authority shall grant an injunction against action taken under the Act. Appeals go to the First and Second Appellate Authorities.

Can the Competent Authority pass urgent orders?

Yes. Section 41(3) lets it issue directions or interim orders, including restraining a promoter, owner, association or office-bearer, where a contravention is continuing or about to happen. Where needed to prevent irreparable harm, it may act without prior notice, then hear the affected party.

Will there be an online system for apartment records in Karnataka?

Section 54 of the bill requires the Government, within two years of commencement, to set up an online portal for applications, digital records of declarations and associations, and transparency about registered projects and associations. Section 40(f) also requires a publicly accessible electronic registry.

This article summarises the Karnataka Apartment (Ownership and Management) Bill, 2026 as introduced and a law firm's update on its enactment, for information. The final Act and rules govern; it is not legal advice.

Last updated 2026-11-12. PropNewz Team.