BENGALURU: To ease the financial burden on property owners, the state govt Tuesday has proposed a steep reduction in the completion certificate fee in its amendment to the Bruhat Bengaluru Mahanagara Palike (BBMP) Act. The bill seeks to slash the fee for obtaining a completion certificate from up to 1% of the guidance value of a vacant site to just 0.1%.
This revision is expected to bring relief to property owners and streamline the approval process. Additionally, the amendment has introduced a cap on penalties for residential properties, limiting them to two-thirds of the fees levied by the BBMP.
This move is likely to provide more clarity on penalty structures and prevent excessive financial burdens on homeowners The proposed changes, if implemented, are expected to simplify regulatory approvals and reduce costs for property owners across Bengaluru.
Three amendment bills
The state govt also introduced three key amendment bills in the assembly—the Registration (Karnataka Amendment) Bill, the Karnataka Stamp (Amendment) Bill, and the Karnataka Gram Swaraj and Panchayat Raj (Amendment) Bill of 2025—proposing significant changes in property registration, digital transactions, and rural governance.
The Registration (Karnataka Amendment) Bill makes it compulsory to register any power of attorney authorizing the transfer of immovable property, whether or not there is financial consideration involved. The bill also mandates that any power of attorney must be produced as proof for it to be legally recognized.
The Karnataka Stamp (Amendment) Bill proposes to bring digital e-stamping under the definition of “duly stamped” documents. Additionally, it seeks to legalize electronic signatures and allow the payment of stamp duty through digital means, aiming to modernize and simplify financial transactions related to property.
Panchayat Raj bill expands property tax scope
The Karnataka Gram Swaraj and Panchayat Raj (Amendment) Bill suggests bringing all rural assets under the jurisdiction of local authorities. It also proposes extending property tax provisions to unauthorized settlements (except govt land) and unauthorized buildings in legal settlements. Furthermore, the bill includes provisions for punitive action against officials for failing to comply with the law.
If passed, these amendments are expected to enhance transparency in property dealings, streamline digital transactions, and strengthen rural governance across the state.
