Karnataka Assembly passes bills to simplify real estate use for MSMEs

The Karnataka Assembly on Wednesday passed nine bills, including Karnataka Land Reforms and Certain Other Law (Amendment) Bill.

Revenue Minister Krishna Byre Gowda, who piloted the Karnataka Land Reforms and Certain Other Law (Amendment) Bill for the consideration of the House said, "There will be auto-conversion." It permits the use of up to two acres of agricultural land for new micro, small, and medium enterprises (MSMEs) without the need for a formal conversion process.

The bill also proposes doing away with conversion of agricultural lands if they are used for renewable energy projects.

It proposes a penalty of Rs 1 lakh for selling any agricultural land for nonagricultural purposes, without getting such land converted or without obtaining prior approval of the competent authority.

 

It has therefore removed a three-year imprisonment clause, because so far, this violation carried an imprisonment for three years and fine of Rs 10,000.

The Assembly also passed the Registration (Karnataka Amendment) Bill aimed at simplifying the property registration process, while also allowing the use of technology.

It proposes to reduce human intervention, and provides for digital signatures to approve property registrations.

The bill mandates that Sub-Registrars conduct due diligence during property registration to protect public interests.

It will ensure that property software is integrated to prevent illegal registration of properties in urban areas and to simplify property registration.

The Assembly also passed Bills related to the development authorities of Basavakalyan, Kaginele, Nadaprabhu Kempegowda Heritage Area, Kittur, Kudala Sangama, Banavasi, and Sarvajna Kshetra -- to make the Chief Minister or Revenue Minister or any other Minister as chosen by the Chief Minister as the chairman of these authorities.

Noting that the CM is the chairman of all these authorities at present, the Revenue Minister said, "Due to work pressure and other reasons it is difficult for Chief Minister to pay attention towards the functioning of these authorities, so an opportunity is being provided now for Chief Minister or Revenue Minister or any other Minister to be the chairman and over see their functioning."  Also, the Greater Bengaluru Governance (Amendment) Bill, 2025 was tabled in the Assembly, which is said to be aimed at giving clarity regarding the functions of the Greater Bengaluru Authority.

It is likely to be taken up for discussion and passage in the days ahead.