New apartment Bill proposes federations to end multiple association disputes

The Karnataka Apartment (Ownership and Management) Bill, 2026, will end the long-standing problem of managing multiple associations within the same apartment complex by proposing the formation of federations in such cases.

So far, several apartment complexes with multiple associations have struggled to resolve disputes over the use of common areas. The issue was also raised by several participants at the event where the Urban Development Department (UDD) presented the draft of the Bill in July.

Legal framework

The Bill introduces a detailed legal framework for the formation, registration, and functioning of federations of apartment associations, particularly for large complexes and multi-phase developments. It treats a federation as a higher-level body responsible for managing infrastructure shared by multiple apartment associations.

Naveen, a member of an apartment association in south Bengaluru, said residents frequently got into disputes over charges, the use of common areas, and their management, which was one of the major problems in complexes with multiple towers.

“Especially with the financial aspect, deciding who collects the maintenance charges and who oversees them was a problem,” he said.

He noted that several apartment complexes already had federations, but their operational structure and jurisdiction were not clearly defined, an issue that the new Bill seeks to address.

Forming a federation

According to the draft Bill, separate apartment associations must be formed where an apartment project is implemented in phases. These associations may then come together to form a federation to manage common infrastructure shared across all phases or towers.

In mixed-use developments comprising residential, commercial, or Economically Weaker Section (EWS) units, separate associations may also be created.

The Bill also stresses the role of the promoter in the process. It states that where separate associations exist, the promoter must clearly identify which common areas belong to individual associations and which facilities are to be managed jointly through the federation.

Registration of federation

The federation must be registered with the competent authority, which, in this case, is the UDD. Its application must include the prescribed documents. After the application is submitted, if the UDD is satisfied that the federation and its bylaws comply with the provisions of the new Act and the Real Estate Regulatory Authority (RERA) guidelines, it must issue a registration certificate within 60 days. Once registered, the federation becomes a body corporate with perpetual succession, suing and being sued.

Federations already in existence before the Act comes into force will automatically be deemed to have been constituted under the new law. However, they will have to comply with the provisions of the Act and the rules framed under it within the prescribed period.

Maintenance charges

Where a federation exists, it can assess the expenses incurred for maintaining collective common areas and shared community facilities.

The expenses are apportioned among the member associations based on the aggregate Super Built-up Area of apartments within each association relative to the total Super Built-up Area covered by the federation. However, it is subject to the provisions of the Act and its bylaws.