by THO
The Karnataka Budget 2025 has disappointed homebuyers, offering no major relief or solutions to their longstanding demands. While the budget prioritizes affordable housing and Bengaluru’s infrastructure, it fails to address key issues like assured ownership and property management reforms, say representatives of homebuyers’ associations.
The total estimated expenditure for the year stands at ₹4.09 lakh crore, with Chief Minister Siddaramaiah emphasizing infrastructure development—particularly in Bengaluru, where allocations have increased from ₹3,000 crore to ₹7,000 crore.
However, homebuyers argue that assured ownership and property management reforms have been overlooked despite repeated appeals and past government assurances.
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“Our key demand for a new Apartment Ownership and Management Act, committed last year by the deputy chief minister, was not mentioned or introduced—we are disappointed,” said Vikram Rai, President of the Bangalore Apartments Federation (BAF), speaking to HT.com.
BAF has long advocated for comprehensive legislation to secure legitimate apartment ownership, benefiting lakhs of homeowners. Additionally, they seek formal recognition of owner associations with defined rights and responsibilities to manage apartment communities effectively.
No mention of the new Apartment Ownership Act, say homebuyers
Dhananjaya Padmanabhachar, director of the Karnataka Home Buyers Forum, says the Karnataka Budget 2025 did not prioritize introducing a new Apartment Ownership Act or identifying a competent authority to administer it.
Speaking at the Assembly on February 13 2024, Karnataka Deputy Chief Minister D K Shivakumar said that the state is working towards a uniform law to solve homebuyers’ woes. “We will have a new apartment ownership Act under the purview of the RERA Act, and it will abolish the Karnataka Apartment Ownership Act, 1972,” he added.
“The Karnataka High Court has directed the state government advocate to submit a response to a writ petition filed by a homebuyer seeking clarity on the new Apartment Ownership Act. It is disappointing that the government is prioritizing revenue generation through the stamps and registration department rather than safeguarding homebuyers’ rights,” Padmanabhachar remarked.
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Boost to Affordable Housing in Karnataka
The Karnataka Budget 2025 outlines plans to introduce an interest subvention scheme to reduce the interest burden on beneficiaries under the Affordable Housing Project, implemented by the Rajiv Gandhi Housing Corporation.
According to the budget document, the beneficiary contribution under the Pradhan Mantri Awas Yojana (Urban) has been reduced to ₹1 lakh. The state government will contribute ₹5 lakh on their behalf, making homeownership more accessible for low-income families.
