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Karnataka has amended its Rent Control Act, 1999, decriminalizing rental disputes while introducing steep fines for violations such as unauthorized subletting, illegal eviction, and failure to register real estate agents. Tenants who sublet properties without consent may face fines up to INR 50,000 or double the rent received. Landlords evicting tenants unlawfully face similar penalties. Real estate agents not registering with rent controllers are now liable for daily fines. The changes, aligning with the Jan Vishwas Act, 2025, empower rent controllers to adjudicate disputes and aim to reduce judicial burden.
The Karnataka government has approved substantial amendments to the Karnataka Rent Control Act, 1999, aiming to regulate rental practices while easing the judicial load. The amendments remove imprisonment clauses that previously applied in rental disputes and impose higher fines ranging from 900% to 2,500% of earlier penalties. Advertisement
Under the new rules, tenants who sublet or transfer possession of a rented property without the landlord?s consent can be fined up to INR 50,000 or double the rent received for each month the violation continues. Earlier, such violations carried fines of INR 5,000 or double the rent and could include up to a month?s imprisonment. Similarly, landlords unlawfully evicting tenants, especially when courts have ordered re-letting to the original tenant, now face fines up to INR 50,000 or double the rent, eliminating imprisonment as a penalty.
The amendments also apply to real estate agents and intermediaries. Those failing to register with rent controllers now incur daily fines of INR 20,000 until compliance, replacing earlier imprisonment penalties. A North Bengaluru real estate agent noted that while many agents register with RERA as channel partners, most are unaware of the requirement to register with the government for reselling properties.
The state has designated assistant commissioners in urban areas and tahsildars in rural regions as rent controllers, who are now empowered to adjudicate disputes. This is intended to reduce the burden on the judiciary and ensure faster resolution of rental disagreements.
The amendments are expected to be tabled during the winter legislative session in Belagavi. If approved, they will strengthen compliance and accountability among tenants, landlords, and agents across Karnataka.
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