Karnataka Broadens Occupancy Certificate Exemption for Small Residential Buildings

Karnataka has expanded the scope of exemption from obtaining an Occupancy Certificate ("OC") for certain residential buildings by increasing the eligible plot size from 1,200 sq. ft. to 2,400 sq. ft. (subject to a permissible variation) and extending the permissible building configuration from Ground + 2 floors to Ground + 3 floors. While the reform simplifies procedural compliance for homeowners, it does not relax the requirement to obtain sanctioned building plans or comply with applicable planning, structural, and safety regulations.

Introduction

The Government of Karnataka has introduced a significant reform to its building regulatory framework by expanding the categories of residential buildings exempt from obtaining an Occupancy Certificate. Initially introduced through Government Order No. NAE/334/MNU of 2025 dated 9 September 2025, the exemption has now been substantially widened pursuant to the Government Order dated 5 June 2026. The revised framework seeks to reduce procedural delays for smaller residential developments while preserving statutory safeguards governing construction and urban planning.

Statutory Basis

The exemption traces its authority to Section 241(7) of the Greater Bengaluru Governance Act, 2024, which empowers the State Government and the Greater Bengaluru Authority ("GBA") to exempt specified classes of buildings from the requirement of obtaining an Occupancy Certificate. Similar notifications have also been issued under the Karnataka Municipalities Act, 1964 and the Karnataka Municipal Corporations Act, 1976, thereby extending the benefit beyond the jurisdiction of the GBA.

Expansion of the Exemption

The notification issued in September 2025 exempted residential buildings constructed on plots measuring up to 1,200 sq. ft., permitting buildings comprising Ground + 2 floors or Stilt + 3 floors, subject to compliance with approved building plans and applicable statutory approvals.

The subsequent notification dated 5 June 2026 significantly enlarged the scope of the exemption by increasing the eligible plot size to 2,400 sq. ft., with a permissible variation of 20%, and extending the permissible building configuration to Ground + 3 floors. The amendment reflects the State's intention to extend regulatory relief to a larger segment of individual residential property owners.

Continuing Compliance Obligations

The exemption from obtaining an Occupancy Certificate should not be construed as a waiver of statutory compliance requirements. Construction can commence only after obtaining approval of the building plan from the competent authority, and all applicable zoning regulations, setback requirements, structural standards, and land-use restrictions continue to apply. Further, buildings covered by the exemption must comply with the fire and life safety provisions prescribed under the National Building Code, 2016, wherever applicable. Accordingly, while the requirement to obtain an Occupancy Certificate has been dispensed with for eligible buildings, unauthorised construction or deviations from sanctioned plans remain subject to action under the applicable municipal and planning laws.

Conclusion

The expanded exemption marks an important step towards simplifying the regulatory process for small residential developments by eliminating a procedural requirement that often delayed occupation of completed buildings. At the same time, the Government has retained the substantive obligations relating to planning approvals, construction standards, and safety compliance. The exemption is presently confined to residential buildings and does not extend to commercial or industrial developments. Its success will ultimately depend on effective enforcement against unauthorised constructions while ensuring that compliant homeowners benefit from a more efficient approval framework.