Summary: The progressive expansion of the occupancy certificate exemption, extending the threshold from 1,200 square feet to 2,400 square feet and from ground+2 floors to ground+3 floors, shows a clear legislative intent to broaden administrative relief to owners of small residential properties. However, the lifting of the occupancy certificate requirement neither diminishes the obligation to comply with approved building plans and safety standards, nor can it be construed as authorisation for deviation from substantive compliance requirements under applicable building laws and town planning legislation.
INTRODUCTION
In a significant policy development, the State of Karnataka recently reformed its building regulation framework by introducing exemptions from Occupancy Certificate (“OC”) requirements for certain categories of small residential buildings. This marks one of the most substantial changes to the state’s building approval regime in recent years. The exemption has evolved in two stages: the original Order bearing No. NAE/334/MNU of 2025, dated September 9, 2025[1]) and the extension Order dated June 5, 2026,[2] issued by the Urban Development Department. This blog examines the legislative framework, traces the progression of the exemption, and assesses the conditions that remain in force, and implications for property owners, developers, and local authorities across Karnataka.
LEGAL FRAMEWORK
The OC exemption derives its authority from Section 241(7) of the Greater Bengaluru Governance Act, 2024[3], which empowers the Greater Bengaluru Authority (“GBA”) and the state government to exempt certain classes of buildings from OC requirements. The OC exemption extends beyond Bengaluru to municipalities and other municipal corporations, with notifications also issued under the extant laws i.e., Karnataka Municipalities Act, 1964, and the Karnataka Municipal Corporations Act, 1976. The June 5, 2026, order broadens the exemption to residential plots up to 2,400 square feet (+20% variation), permitting buildings up to ground+3 floors within the GBA area.
THE ORIGINAL ORDER (SEPTEMBER 2025)
Under the original Order bearing No. NAE/334/MNU of 2025, issued on September 9, 2025, the OC exemption applied to residential buildings on plots measuring up to 1,200 square feet within the GBA region. The exemption covered residential structures comprising either ground + 2 floors or stilt + 3 floors configurations, subject to compliance with the building plan approved by the GBA and/or the jurisdictional planning authority, together with all allied statutory approvals.
THE EXTENDED ORDER
The June 5, 2026, order, issued by the Urban Development Department of the Government of Karnataka, constitutes a further and material expansion of the regulatory relief framework. This is specifically directed at granting relaxation or exemption from OC requirements for residential sites and buildings within the jurisdictional limits of the GBA, which spans approximately 1,200 square kilometres. Building upon the earlier relaxation, the extended order now provides relaxation to residential buildings up to 2,400 square feet (with an allowable variation of +20 per cent) for buildings up to ground + 3. The State of Karnataka had earlier granted a relaxation applicable to small residential sites and buildings up to ground + 2 floors.
For ease of reference, a snapshot of the current exemptions allowed by Government of Karnataka is enlisted in the table below:
| Parameter | Original Order (Sept 2025) | Extended Order (June 2026) |
| Plot size | Up to 1,200 sq. ft | Up to 2,400 sq. ft (+20% tolerance) |
| Maximum building height | Ground + 2 floors / Stilt + 3 floors | Ground + 3 floors |
POLICY RATIONALE
The Government has articulated several justifications for the reform. The traditional system necessitated extensive site inspections and comparative verification between constructed buildings and approved plans, imposing a substantial workload upon local administrative body/officers. This verification process frequently resulted in significant procedural delays in the issuance of OCs, thereby impeding the timely occupation and use of premises by property owners. Furthermore, the earlier framework lacked sufficient transparency, creating uncertainty for applicants and presenting potential opportunities for discretionary decision-making. Given the considerable volume of plan approvals issued annually by GBA zonal offices for buildings constructed on smaller residential sites, the exemption is anticipated to have a substantial impact on administrative efficiency and the expeditious completion of small residential projects.
CONDITIONS AND LIMITATIONS
The exemption does not regularise and or accord licence to unregulated constructions. It is mandatory for all construction projects/s to obtain building plan approval from the competent local authority before commencement of such construction, irrespective of the size or category. The Government has mandated adherence to fire and life safety regulations under the National Building Code (NBC), 2016[4] for all buildings up to 15 metres in height. This pre-requirement ensures that all fundamental safety standards are maintained, notwithstanding the relaxation of OC requirement. Exempted buildings must also comply fully with applicable zoning regulations, setback requirements, structural safety standards, and usage norms under relevant local by-laws. Procedural relief from the OC requirement does not diminish substantive planning and safety obligations.
CONCLUSION
The OC exemption represents a well-intentioned measure to balance regulatory efficiency with safety standards, removing a layer of bureaucracy for small residential buildings while maintaining mandatory plan approvals and building code compliance, thereby reducing compliance costs for individual residential property owners. It is pertinent to note that the OC exemption is confined solely to residential buildings. It is silent on its applicability to industrial or commercial buildings and does not extend to or expressly include such categories of buildings. However, a key challenge for the GBA vis-a-vis compliance, will beto put together mechanisms for inspection and monitoring of non-compliant building structures and take legal action against such violations. In conclusion, the OC exemption expedites the occupation and utilisation of small residential buildings within the prescribed thresholds, alleviates procedural encumbrances, and affords meaningful relief to property owners and occupiers.
For further information, please contact:
Harsha Sudhindra, Partner, Cyril Amarchand Mangaldas
harsha.sudhindra@cyrilshroff.com
[1] Notification bearing No. NAE/334/MNU/2025, dated September 09, 2025, issued by the Member Secretary, Greater Bengaluru Authority, Government of Karnataka.
[2] Government Order No. 334/2025 (Part), Cabinet Case No. 310/2026.
[3] The Greater Bengaluru Governance Act, 2024, Act No. 36 of 2025 § Section 241(7).
[4] National Building Code of India, 2016, Part 4: Fire and Life Safety, Bureau of Indian Standards, 2016.
