Karnataka Eases Land Conversion Rules, Modernises Property Registration

The Karnataka Legislative Assembly has passed the Karnataka Land Reforms and Certain Other Law (Amendment) Bill, 2025, to promote renewable energy projects, generate clean energy, and align provisions with the Jan Vishwas (Amendment of Provisions) Act, 2023. The Bill amends two key Acts, reducing penalties and expanding permissible land uses. The Registration (Karnataka Amendment) Bill, 2025, was also passed, enabling property registration at sub-registrar offices without the physical presence of parties and addressing concerns over duplicate claims and registration fraud.

 

Amendments to the Karnataka Land Revenue Act, 1964:

• No permission for diversion of agricultural land for non-agricultural purposes will be required if up to two acres are used for establishing new industries.
• Land required for renewable energy projects will be exempt from conversion for non-agricultural purposes, subject to payment of the prescribed fee.
• The penalty for selling agricultural land for non-agricultural purposes without conversion or prior approval is reduced from imprisonment of three years and a fine of ₹10,000 to only a fine of ₹1 lakh.

Amendments to the Karnataka Land Reforms Act, 1961:

• Under Section 109, which allows exemption from Sections 63 or 80 for purposes such as industrial development, educational institutions, religious establishments, horticulture, and housing projects, the power of Deputy Commissioners (except in Bangalore Rural and Bangalore districts) to grant exemptions is expanded from land up to 0.5 hectare to land up to 4 hectares.
• For onward sale of land for the same purpose after seven years of purchase, when non-usage is due to reasons beyond control, permission must now be obtained from the High-Power Committee headed by the Chief Secretary, instead of the State Government.
• The fine under Section 125 is increased from ₹250–₹1,000 to ₹1,000–₹5,000, and the provision for imprisonment of six months to one year is replaced with a penalty of ₹50,000.

Amendments to the Registration Act, 1908:

• The term ‘Registering Officer’ is defined as a person appointed under Section 6 or a system using Digital Signature Certificates as notified by the State Government.
• Physical presence for document registration is exempted in case of electronic submission. Personal attendance for inquiry is also exempted in online applications; identity verification will be carried out as per prescribed rules.
• In addition to registering offices, any controlling officer specified by the state government may sign and seal certified copies of entries after inspecting specified records.
• The Inspector General’s supervisory powers are expanded to include procedures for electronic presentation of documents, admission, endorsement, signatures, seals, payment of registration and other fees, and other related processes.
• Registration will be refused for documents violating Central or State laws on transfer of immovable property unless original property records are accessed through prescribed electronic integration. Transfers (sale, lease, exchange, etc.) without required documents—such as a property sketch, conversion order, sanctioned plan, or electronic khata/title deed—will also be refused.

The Registration Act was previously amended earlier this year to make registration compulsory for powers of attorney authorising transfer of immovable property (with or without consideration) and for any grant of immovable property by the government. Provisions were also introduced to verify the authenticity of powers of attorney, and government-executed documents (by loan-granting officers, court officers, revenue officers, and other specified officials) were required to be sent electronically to the jurisdictional Registering Officer for electronic preservation.

The state’s Registration Act amendments broadly align with the digitization, identity assurance, and anti-fraud objectives of the proposed central Registration Bill, 2025, including enabling electronic presentation, stronger data integrations, and standardized digital processes for registration workflow.