Bengaluru Real Estate Update: OC Waiver Extended to Larger Residential Plots

In a major relief for homeowners in Bengaluru, the Karnataka Cabinet has decided to exempt residential buildings constructed on plots larger than 1,200 sq ft from the mandatory requirement of obtaining an Occupancy Certificate (OC).

This decision comes after growing public pressure over electricity connections being denied to thousands of completed houses due to the absence of approved plans and OCs.

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What Does the New Rule Mean?

According to reports, the exemption allows buildings on plots exceeding 1,200 sq ft—subject to verification and compliance checks—to receive essential civic amenities such as electricity. This means homeowners can now access basic utilities even if their properties lack an OC.

Why Was This Change Needed?

Earlier, the Supreme Court had made OCs compulsory for granting electricity connections. As a result, over 3.3 lakh completed buildings across Karnataka were left without power. To address this widespread issue, the state government decided to frame a one-time relief law, ensuring that such houses receive legal electricity connections.

Previous Policy for Smaller Plots

The new exemption builds on an earlier decision by the Karnataka Cabinet, which had already granted OC waivers for residential buildings constructed on plots up to 1,200 sq ft. With the latest move, larger plots now also benefit from this relaxation.

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Will All Large Buildings Be Exempted?

Not entirely. The government has clarified that exemptions will not be blanket approvals for all large properties. Instead, relief will be granted selectively after thorough verification. Rule violators will face penalties, and new legal measures will be introduced to prevent misuse of this relaxation.

How Do Other States Handle This?

Bengaluru is not the only city facing this issue. In Mumbai, for instance, over 25,000 buildings lack a legal OC. Yet, civic authorities and electricity distributors provide legal connections for water and power, often on humanitarian grounds. However, housing societies without a legal OC are charged additional fees per unit of water consumed, ensuring some accountability remains.

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What This Means for Bengaluru Homebuyers

The Cabinet’s decision is expected to provide immediate relief to thousands of homeowners struggling without electricity despite having completed houses. However, experts caution that while this may solve short-term problems, long-term regulatory reforms will be necessary to ensure compliance and prevent future irregularities.