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The Karnataka Assembly on August 13, 2025, passed nine bills, including amendments to simplify real estate use for MSMEs and renewable energy projects. A key provision will allow MSMEs to use up to two acres of agricultural land without a formal conversion process, while a three-year imprisonment clause for this violation has been removed. The bills also aim to simplify the property registration process through the use of technology, with an emphasis on protecting homebuyers from fraudulent transactions.
The Karnataka Assembly on August 13, 2025, passed nine bills, including amendments that aim to simplify the use of real estate for MSMEs and renewable energy projects.This legislative action, intended to boost industrial growth and reduce problems caused by middlemen, was taken to improve the ease of doing business across the state. The new law will allow MSMEs to use up to two acres of agricultural land without a formal conversion process, a significant change from the previous rules. Advertisement
The Karnataka Land Reforms Bill, which is part of this initiative, proposes to remove the requirement for converting agricultural land for use in renewable energy projects. It also removes the three-year imprisonment clause for selling agricultural land for non-agricultural purposes without proper approval, replacing it with a penalty of INR 1 lakh. Revenue Minister Krishna Byre Gowda, who introduced the bill, stated that the aim was to minimize human intervention in the property registration process through the use of technology, such as digital signatures.
The Registration Bill is another key part of this initiative, and is intended to simplify the property registration process by allowing the use of digital signatures to approve property registrations. Gowda clarified that this will apply only to properties allotted by government agencies like the Bangalore Development Authority (BDA) and Karnataka Industrial Area Development Authority (KIADB) and not to transactions between two private individuals. The bill also mandates that sub-registrars must conduct due diligence and integrate property software to prevent illegal registrations, protecting public interest.
Additionally, the Assembly passed bills to make the Chief Minister or a chosen minister the chairman of various development authorities, aiming to improve their functioning. This push for legislative and regulatory reform is part of Karnataka's strategic initiative to become a global leader in advanced manufacturing, research, and development. The state is aiming to attract investments of INR 7.5 lakh crore and create employment opportunities for 20 lakh people in the next five years, with MSMEs expected to be a major part of this growth.
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