Maintenance Dues Under Karnataka's New Apartment Law: A Guide for Bengaluru Owners and Buyers

Rs 46,429 and Rs 53,571. That is how Rs 1 lakh of monthly common expenses would be split between the two flats in the illustration printed inside Karnataka's new apartment law, which gives them super built-up areas of 195 and 225 square metres. The arithmetic is ours, but the rule behind it is the law's: maintenance should in general follow super built-up area.

The Karnataka Apartment (Ownership and Management) Act, 2026 received the Governor's assent on 9 October and was gazetted on 15 October as Act No. 45 of 2026, according to FoxMandal's 16 October update, which also says it is not yet in force. We explained its scope and the promoter's deadlines in our overview of the new Karnataka apartment law. This guide looks at the part most owners will feel every month: maintenance, using the bill as introduced, LA Bill No. 14 of 2026.

The short answer. Under the bill, maintenance is levied by the association in proportion to super built-up area, owners pay even if they do not use facilities, and the penalty for non-payment cannot exceed one month's maintenance. An association may restrict non-essential facilities for persistent defaulters but cannot withhold water, electricity, sanitation, lifts, fire safety or access. Unpaid dues are a charge on the flat, and a resale buyer is jointly liable with the seller for dues up to the transfer, with a conclusive association certificate as protection. The trade-off: the penalty cap protects owners, but associations get stronger recovery tools, including a charge recorded by a Competent Authority and recovery as arrears of land revenue.

How will maintenance be calculated?

Section 25(1) of the bill says the association shall assess the common expenses of administration, upkeep, repair and maintenance of common areas and levy them as maintenance charges on every owner as specified in the bye-laws. Section 25(2)(a) says the bye-laws shall specify the basis, which should in general be proportionate to the ratio of each apartment's super built-up area to the total super built-up area of all apartments, except for special amounts for special services or usage.

Using the bill's own illustration of two apartments with super built-up areas of 195 and 225 square metres, the shares are 195/420 and 225/420, or about 46.4 and 53.6 per cent. On Rs 1 lakh of monthly common expenses, that is about Rs 46,429 and Rs 53,571. In a real project, the same ratio is taken across every apartment.

Section 25(3) says every owner must pay maintenance even if the owner does not use or enjoy the facilities, and section 25(4) lets the charges be recovered from the occupant if the owner does not live there. Section 25(6) says a promoter who still holds unsold apartments and is a member of the association pays maintenance on them like any other owner.

How much can an association charge as a late penalty?

Section 25(2)(c) says the bye-laws shall specify the rate of interest or penalty for delay or non-payment within an upper limit to be prescribed. Its first proviso adds that the penalty imposed for non-payment shall not exceed the amount of the monthly maintenance charges payable by the owner. The second proviso says any penalty collected goes to the association's common capital.

In an example of our own: a flat with a monthly maintenance charge of Rs 6,000 could not be charged a penalty of more than Rs 6,000 for non-payment, though interest at the prescribed rate may also apply under section 20(2). The rules, once notified, will set that rate.

Can an association cut services for unpaid dues?

Only non-essential ones. Section 20(6) says that where an owner persistently defaults, the association may, after due notice, restrict the use of such non-essential common facilities and services as the bye-laws specify. The proviso is categorical: no essential services, including water supply, electricity, sanitation, lift services, fire safety systems or access to the apartment, shall be withheld.

Associations also get a formal route. Section 20(7) lets the Competent Authority, on the association's application and after hearing the owner, order recovery with interest and costs. Section 26 lets the association or an owner apply to record or remove a charge for unpaid dues, with a limitation of two years from when the dues became payable, and a six-month limitation for disputes under section 25.

What does a resale buyer inherit?

Section 20(1) makes all sums assessed by the association a charge on the apartment, together with its undivided interest in land and common areas. Section 20(4) says that on transfer, the purchaser is jointly and severally liable with the transferor for unpaid common expenses up to the date of transfer.

The protection is in section 20(5): on request by an owner intending to transfer, the association shall issue a certificate of the unpaid common expenses, and that certificate is conclusive against the association for the amount stated. Section 27(1) puts the onus on the buyer to obtain from the seller the association's statement of dues before buying, and section 27(3) says a buyer who pays pre-transfer dues may recover them from the previous owner. Chennai buyers have a similar rule, as we explained for Tamil Nadu's section 22.

Where does the charge rank against a home loan?

Section 20(3) says the association's charge is prior to all other charges created later, but subordinate to taxes and fees payable to government authorities and to a mortgage or charge in favour of a bank or other secured creditor created before the assessment. Section 25(7) similarly says maintenance charges are subordinate to government or municipal taxes, statutory dues and sums secured under a prior registered mortgage.

For a buyer with a home loan, that means the lender's prior mortgage ranks ahead of later maintenance dues, but dues still follow the flat.

How will the association's money be kept and checked?

Section 28 of the bill requires the association to keep a bank account in its name with a scheduled bank, into which all maintenance charges, security deposits, advance maintenance and other contributions are paid. It may keep separate accounts for different funds, such as maintenance and common capital funds, as the bye-laws provide.

The association must keep a receipts and payments account, an income and expenditure account and a balance sheet for each financial year, have the accounts audited annually by a chartered accountant or other prescribed auditor, and submit the audited statement to the Competent Authority within six months of the year end. Section 28(7) allows a penalty, to be prescribed, if it does not.

Two other costs will show up in your maintenance bill. Section 29 says the premium for insuring the property and common areas is part of the common expenses. Section 30 says major repairs or reconstruction beyond the association's ordinary funds need a resolution of a majority of owners present and voting, with a quorum of at least half of all owners, and that the cost is shared by super built-up area. Section 25(5) also lets the association levy one-time or recurring charges for community and commercial facilities, as the bye-laws specify.

What should Bengaluru owners and buyers do now?

The law is not in force yet, but these steps cost nothing and match where it is heading. Whether you own in an older society or are booking in a new project such as Sobha Mullur on Sarjapur Road, ask the same questions:

1. Find out whether your association levies maintenance by super built-up area, carpet area or a flat rate.
2. Ask for the super built-up area of your flat and the total for the project, so you can check your share.
3. Read the bye-laws' late-payment clause and compare the penalty with one month's maintenance.
4. Check that the bye-laws do not allow essential services to be cut for non-payment.
5. Before a resale purchase, ask the seller to obtain the association's certificate of unpaid dues in writing.
6. Settle the certified dues at or before registration, and keep the association's receipt.
7. Watch for the commencement notification and rules, which will fix the interest rate and penalty limit.

Frequently asked questions

How will maintenance be shared under Karnataka's new apartment law?

The bill says bye-laws should in general levy maintenance in proportion to each apartment's super built-up area relative to the total super built-up area of all apartments, except for special amounts for special services or usage. Owners are liable even if they do not use the facilities.

Is there a cap on the penalty for late maintenance in Karnataka?

Yes, under the bill as introduced. Section 25(2) says the penalty imposed for non-payment shall not exceed the amount of the monthly maintenance charges payable by the apartment owner, and that any penalty collected is credited to the association's common capital.

Can an association cut water or lift access for unpaid maintenance?

No. Section 20(6) of the bill lets an association, after notice, restrict non-essential common facilities named in the bye-laws for persistent default, but its proviso says essential services including water, electricity, sanitation, lifts, fire safety systems and access to the apartment shall not be withheld.

Is a resale buyer liable for the seller's unpaid maintenance in Bengaluru?

Under section 20(4) of the bill, the purchaser is jointly and severally liable with the seller for unpaid common expenses up to the transfer. Section 20(5) makes the association's certificate of unpaid dues conclusive against it, and section 27(3) lets a buyer who pays recover from the previous owner.

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 rupee figures are illustrative. The final Act and rules govern; it is not legal advice.

Last updated 2026-11-12. PropNewz Team.