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Karnataka amends Rent Control Act: Fines for subletting violations raised 10-fold to ₹50,000
Karnataka Rent Control Act: Real estate experts say removing the imprisonment clause reduces fear, the ₹50,000 fine may deter subletting, unlawful evictions
The Karnataka state government has introduced amendments to the Karnataka Rent Control Act, 1999, decriminalizing rental disputes while imposing higher penalties. Nine clauses of the Act now carry hefty fines instead of criminal charges. These include unauthorised tenant subletting, illegal evictions by landlords, falsification of property details, and failure to register real estate agents or middlemen with state-appointed rent controllers, a media report has said.
For instance, tenants who sublet, assign, or part with possession of any part or whole of a premises in violation of the law may face a penalty of up to ₹50,000 or double the rent received for subletting each month until the violation ends, whichever is higher. Previously, such violations carried a fine of ₹5,000 or double the rent, along with possible imprisonment of up to one month, or both, as per a report published in the Times of India.
Similar penalties now apply to landlords who unlawfully evict tenants, especially when courts have ordered re-letting to the original occupants, it said.
The cabinet approved these changes last week, and the amendments are expected to be tabled during the winter session of the legislature in Belagavi, the Times of India newspaper reported.
By removing the imprisonment clause, the government has taken a key step in reducing fear and preventing the potential misuse of the law. At the same time, introducing a substantial monetary penalty of up to ₹50,000 ensures tenants are deterred from subletting or misusing properties, while also discouraging landlords from unlawful evictions. This approach, real estate experts told HT Real Estate, strikes a fair balance, protecting the interests of both parties.
Why the need?
The move seeks to bring the state Act in line with the central government’s Jan Vishwas Act, 2025, which decriminalizes minor offences, replacing imprisonment with penalties and warnings. As part of this, the state has removed the one-month imprisonment clause that previously applied to rental disputes between tenants and landlords.
The new amendments
Under the new amendments, penalties for nine different clauses of the Act have been replaced with hefty fines. These include unauthorized subletting by tenants, illegal eviction by landlords, falsification of property details, and failure to register real estate agents or middlemen with state-appointed rent controllers, the newspaper said.
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One clause states “...any tenant who sublets, assigns or otherwise parts with the possession of, the whole or part of any premises in contravention of the law then he or she shall be liable to a penalty of up to ₹50,000 or double the rent received by the tenant for subletting for every month till such time the cause of the complaint ceases, whichever is more”.
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Under the previous provisions, the same violation carried a fine of ₹5,000 or double the rent, whichever was higher, along with the possibility of up to one month of imprisonment, or both. Similar penalties applied to landlords who unlawfully evicted tenants even if courts had ordered re-letting to the original tenant. Previously, landlords faced fines of ₹5,000 or double the rent collected after re-letting, and/or imprisonment for up to one month. Under the new amendments, fines can now reach up to ₹50,000 or double the rent, whichever is higher, without the possibility of imprisonment, the newspaper report said.
The amendments also extend to real estate agents and middlemen who fail to register with rent controllers. Imprisonment penalties for such violations have been removed, replaced by a daily fine of ₹20,000 until compliance is met.
The state has designated assistant commissioners in municipal areas and tahsildars in urban and rural regions as rent controllers responsible for enforcing the Act, the paper said.
This is what real estate experts have to say
The recent amendments to the Karnataka Rent Act represent a positive shift towards creating a more balanced and responsible rental ecosystem. Previously, the law allowed for imprisonment in certain rental disputes, which often led to misuse and created fear for both landlords and tenants. By removing the imprisonment clause, the government has taken a significant step to reduce this fear and prevent potential misuse of the law.
"At the same time, introducing a substantial monetary penalty of up to Rs. 50,000 ensures that tenants are deterred from subletting or misusing the property, while landlords are discouraged from unlawful evictions. This approach strikes a fair balance, protecting the interests of both parties. Over time, such measures are likely to encourage more landlords to offer their properties for rent, addressing the issue of vacant properties resulting from a few negative experiences. Overall, these changes signal the government’s intent to promote a healthier, more secure, and well-regulated rental market in Karnataka, benefiting both tenants and property owners alike,” said Amit Agarwal, co-founder and CEO, NoBroker.
