The Karnataka government issued an OC exemption in September 2025 under Section 241(7) of the Greater Bengaluru Governance Act, 2024. It covers only individual residential buildings on plots up to 1,200 sq ft (G+2 or Stilt+3) within GBA limits — with an approved building plan. This OC exemption in Karnataka does NOT cover multi-storey apartments, B Khata properties, or commercial buildings. OC is still completely required for your project if you are purchasing an apartment in Bangalore in 2026.
No OC required for homes in Bangalore.” You probably saw that headline somewhere in late 2025. And if you are currently buying an apartment, you may have felt a moment of relief — followed immediately by confusion. Does this apply to your flat? Is your builder now off the hook?
The answer, in almost every apartment-buying situation, is no. The OC exemption in Karnataka is real and legally grounded — but the OC exemption in Karnataka was designed for a completely different problem affecting a completely different type of property. This blog explains exactly what it covers, what it does not, and what you still need to verify before signing a possession letter in Bangalore.
Why Did Karnataka Even Create This OC Exemption?
To make sense of the rule, you need to understand the problem it was trying to fix — because it was fixing a very specific problem, not a general one.
Karnataka had over 3.3 lakh completed residential buildings that were being denied electricity connections because they lacked an Occupancy Certificate or an approved building plan. (Source: JLL Homes Research, September 2025 — jllhomes.co.in) These were mostly small, self-built homes on 30×40 or 40×60 plots. Families who had owned these homes for years, paid property tax on them, registered them — but still could not get a BESCOM power connection because of a missing document.
To make things worse, a 2024 Supreme Court ruling made OCs a mandatory prerequisite for utility connections. That tightened the noose significantly. BESCOM ended up with over one lakh pending power connection requests, all stalled because of OC non-compliance.
The Karnataka government stepped in with a targeted fix — not a blanket removal of OC requirements, but a carefully scoped relief measure for small individual homes that the system had frankly never been designed to handle efficiently in the first place. That is what the OC exemption in Karnataka is. A fix for a backlog. Not a gift to apartment builders.
What the GBA OC Exemption Actually Says
On September 9, 2025, the Urban Development Department of Karnataka issued a formal directive pursuant to Section 241(7) of the Greater Bengaluru Governance Act of 2024.The section gives the state government power to exempt specific building categories from OC requirements. (Source: Karnataka UDD Directive, September 2025; constructionmanagers.in)
The directive was signed by N.K. Lakshmesagar, Deputy Secretary (GBA, BBMP-1), Urban Development Department, and addressed directly to the Chief Commissioner of the Greater Bengaluru Authority.
Here is what it actually covers. All four of these conditions must be met at the same time:
- The property must be purely residential — not commercial, not mixed-use
- The plot must fall within Greater Bengaluru Authority (GBA) limits
- Plot size must be up to 1,200 sq ft — this is the site area, not built-up area
- The building must be G+2 (Ground plus two floors) or Stilt+3 maximum
- A valid approved building plan must exist through the Nambike Nakshe system
Does the OC Exemption in Karnataka Apply to Your Property?
| Property Type | OC Exemption Applies? | What You Need Instead |
| Individual house — plot up to 1,200 sq ft, G+2, within GBA limits | YES — September 2025 GBA directive | Approved building plan via Nambike Nakshe system |
| Larger residential plot within GBA — with compliance verification | PARTIALLY — Cabinet extension, selective, not automatic | Verification + compliance check by GBA authority |
| Multi-storey apartment complex (any size, any floor count) | NO — Full OC mandatory under RERA | Occupancy Certificate from competent authority |
| B Khata property ( any type) | NO — explicitly excluded | B Khata is ineligible; OC remains required |
| Commercial or mixed-use building | NO — residential exemption only | Full OC mandatory |
| Property outside GBA — BDA, BMRDA, or other authority zones | NO — GBA-only directive | Full OC mandatory under respective authority |
| Property where buyer is applying for a home loan | NO — banks are not bound by govt exemption | OC still required by most lenders |
If You Are Buying a Flat — Stop. OC Is Still Mandatory for You.
This is the section that matters most for apartment buyers, so read it carefully.
The OC exemption in Karnataka does not — in any interpretation, under any reading of the directive — apply to multi-storey apartment complexes. The exemption is explicitly designed for small individual houses on plots. An apartment building with 50 or 100 or 200 units is not a small individual house.
Ujjivan SFB’s legal review states this directly: large apartment complexes, commercial buildings, and taller structures still require Occupancy Certificates exactly as before. Nothing changed for them. (Source: ujjivansfb.in)
Under Section 11(4)(b) of the Real Estate (Regulation and Development) Act, 2016, every builder of a RERA-registered project is legally required to obtain OC before handing possession to any buyer. That law has not changed. The GBA directive operates in a completely separate regulatory space and cannot be used to override RERA obligations.
So if your builder, broker, or any sales person says “OC is no longer required in Bangalore” without specifying that this only applies to small plot-based houses, do one of two things: ask them to put it in writing, or walk away. That statement — without the qualification — is either a misunderstanding or a deliberate misdirection.
For the complete guide on what OC means for flat buyers, how to check BBMP OC status online, and what your legal options are if a builder delays — read: Occupancy Certificate in Bangalore: What Every Flat Buyer Must Know.
Home Loans and the OC Exemption: Banks Don't Care About Government Rules
Even if a property technically qualifies for the OC exemption in Karnataka, getting a home loan on that property is an entirely separate story — and not a simple one.
Banks and housing finance companies are private institutions. They set their own lending criteria. A government notification exempting certain properties from OC requirements does not override a lender’s internal risk policy. Most lenders will still ask for an OC as part of their property due diligence — both during loan processing and at the time of resale. (Source: 99acres)
This is a real and practical problem that the exemption simply does not solve. The exemption gives you the right to get utilities connected without an OC. It does not give you the right to a bank loan without one.
If you are buying a property that qualifies for the exemption and you need financing, call your bank before you sign anything. Ask them specifically: will you process a loan on a property that does not have an OC but falls under the Karnataka GBA exemption? Get the answer in writing.
For a detailed look at the full documentation stack in a property transaction, including what goes wrong between agreement and deed, read: Sale Agreement vs Sale Deed: 7 Costly Mistakes Indian Buyers Make.
B Khata Properties: The Exemption Does Not Help You Here Either
This is a question that comes up a lot, so it deserves a direct answer.
B Khata properties are explicitly excluded from the OC exemption in Karnataka. The directive does not provide any pathway for B Khata holders to use the exemption as a route to A Khata conversion. If your property is on B Khata, the notification changes nothing for you.
For properties that do qualify under the exemption, the primary benefit is the ability to get utility connections — water, electricity, BESCOM — without needing an OC first.
Whether that also results in A Khata issuance by BBMP is a separate question that depends on the authority’s interpretation at the time of your application. It is not guaranteed.
If you are dealing with Khata-related questions alongside OC issues, our detailed guide covers everything: Khata Certificate in Bangalore: A Khata vs B Khata Explained.
What Builders Are Still Required to Do — Exemption or Not
Something important got lost in all the headline noise: the OC exemption in Karnataka is not a compliance holiday. Builders and property owners still have to follow all of these:
- Sanctioned building plan via BBMP, BDA, or GBA — no plan, no exemption
- Adherence to FSI (Floor Space Index), setback norms, and GBA zoning regulations
- Structural safety certification where applicable
- Fire safety clearances and environmental permissions where required
- Residential use only — the exemption does not extend to commercial or mixed-use floors
Additional Chief Secretary Tushar Giri Nath was clear on this point: the exemption is not a waiver for non-compliance. Buildings with unapproved deviations, missing plan sanctions, or unauthorised extensions can still face penalties and denial of services — exemption or not. (Source: NoBrokerHood, September 2025)
5 Questions Every Bangalore Flat Buyer Must Get Answered in Writing
Whether or not the OC exemption in Karnataka is relevant to your specific property, these five questions need written answers before you take possession of any apartment in Bangalore:
- Has the builder received approval for this particular project? Not an OC pledge. Not an application that is pending. the real document.
- Is this project within GBA limits — and does the OC exemption apply? If yes, why, and what is the authority’s written confirmation?
- Will your lender process a loan on this property without a traditional OC? Confirm this with your bank in writing — not with the builder’s finance team.
- Is this property A Khata or B Khata? B Khata is ineligible for the exemption entirely.
- Has the building plan been approved via the Nambike Nakshe system? Without this, the exemption doesn’t apply regardless of plot size.
For the complete pre-possession checklist including OC, RERA verification, builder background checks and more: Apartment Buying Checklist in Bangalore 2026. For evaluating your builder before you book: How to Check a Builder’s Reputation in Bangalore.
What This Policy Change Actually Signals for Bangalore Real Estate
Step back for a second and look at what Karnataka is actually trying to do here.
The state has hundreds of thousands of residents living in homes they legally own but cannot electrify, because a compliance system that was built for organised development was never adapted for the pace of informal, self-built housing that defines a large chunk of the city. The OC exemption in Karnataka is a pragmatic acknowledgment of that gap.
What it signals for formal real estate — Grade-A developer apartments, RERA-registered projects, Bangalore’s organised residential market — is almost nothing. Your RERA protections, your OC requirements, your lender’s due diligence, your Khata obligations: all of these remain exactly as they were. The exemption operates in a completely separate lane.
What it does reinforce, though, is the importance of verifying the specific compliance status of your specific property rather than drawing conclusions from headlines written by people who didn’t read the directive carefully.
Visit Buloke’s residential project listings to learn more about RERA-approved residential projects in Bangalore with confirmed legal compliance and clear paperwork.Also read: RERA Approved Projects in Bangalore: Complete Buyer’s Guide.
FAQ
Does the OC exemption in Karnataka apply to apartments?
No. The Karnataka OC exemption issued under Section 241(7) of the Greater Bengaluru Governance Act, 2024 applies only to individual residential buildings on plots up to 1,200 sq ft (G+2 or Stilt+3 floors) within GBA limits. Multi-storey apartment complexes are not covered and still require a full Occupancy Certificate under RERA.
What is the plot size limit for the Karnataka OC exemption?
The original September 2025 directive covers plots up to 1,200 sq ftPlots greater than 1,200 square feet were granted selected exemption in a subsequent Karnataka Cabinet decision, but this is not automatic. It involves authority verification and compliance checks before any relief is granted.
Is a building plan still required under the OC exemption in Karnataka?
Yes, without exception. A valid approved building plan through the Nambike Nakshe system is a mandatory condition. The exemption removes the OC requirement for utility connections only — it does not remove the need for a sanctioned plan. Without an approved plan, the exemption does not apply regardless of plot size.
Can I get a home loan on a property that qualifies for the OC exemption?
Not automatically. Banks are private institutions and are not bound by government exemption notifications when setting lending criteria. Most lenders will still require an OC during loan processing or at resale. Always confirm your specific lender’s stance in writing before signing anything.
Who issued the Karnataka OC exemption directive?
This directive was issued by the Karnataka Urban Development Department under the authority of Section 241(7) of the Greater Bengaluru Governance Act, and was signed by Deputy Secretary N. K. Lakshmesagar to the Chief Commissioner of the Greater Bengaluru Authority.
Does the Karnataka OC exemption apply to BDA or BMRDA areas?
No. The OC exemption in Karnataka under this directive applies specifically to properties within Greater Bengaluru Authority (GBA) limits. Properties under BDA, BMRDA, or other jurisdictions are not covered and continue to require OC under the rules of their respective authority.
