The Government of Karnataka on August 18, 2026, notified the Karnataka Town and Country Planning (Amendment) Bill, 2026 proposes to amend the Karnataka Town and Country Planning Act, 1961 by inserting Section 18-C. The proposed provision applies to layouts approved from 2005 onwards and before the commencement of the Karnataka Town and Country Planning (Amendment) Act, 2015, where the development works remain incomplete. The Planning Authority may grant final layout approval and release the remaining sites after levying a penalty of 3% of the guidance value of the plots proposed to be released, for each annual period from the commencement of the 2026 Amendment Act, for completion of the development works.
The Bill also seeks to validate penalties already levied, assessed or collected by Planning Authorities for release of sites in layouts approved before the 2015 Amendment Act. Such actions, notices, orders and proceedings would be deemed valid as if undertaken under the principal Act as amended by the 2026 Act. It further provides that no suit or proceeding may be maintained or continued for refund of such penalty and that courts cannot enforce an order directing refund of such penalty.
The proposed amendment is intended to give statutory backing to the penalty already being levied under Government directions, particularly Notification No. UDD:60:MYAAPRA 2018 dated 22 November 2018, and to validate penalties already imposed or collected. The Bill states that the amendment is proposed to address incomplete development works in older approved layouts and to provide a statutory mechanism for final approval and release of remaining sites. The new Section 18-C is proposed to operate with effect from 22 November 2019, while the Bill itself provides that the Amendment Act shall come into force at once.
[LA Bill No. 15 of 2026]
