The Government of Karnataka on September 07, 2026, issued the Karnataka Town and Country Planning (Amendment) Act, 2026 to further amend the Karnataka Town and Country Planning Act, 1961.
The following amendments have been stated:
• In the Karnataka Town and Country Planning Act, 1961 (Karnataka Act 11 of 1963), after section 18-B, the following new section shall be inserted, with effect from 22nd day of November, 2019, namely:-
“18-C. Levy of penalty for layouts where the development of layouts is not completed.-
(1) In case of layouts approved from 2005 onwards and prior to the date of commencement of the Karnataka Town and Country Planning (Amendment) Act, 2015 (Karnataka Act 38 of 2015), wherever the development works have not been completed, the Planning authority shall grant final layout approval and release the remaining sites after levying a penalty of three percent (3%) of the guidance value of the plots in the layout which are to be released by the Planning authority for each annual period from the date of commencement of the Karnataka Town and Country Planning (Amendment) Act, 2026, for completion of development works.
(2) Notwithstanding anything contained in any judgement, decree or order of any court, tribunal or other authority to the contrary, anything done or any action taken or purporting to have been done or taken including any notices or orders issued and all proceedings held for the levy, assessment and collection of any penalty from any person for release of sites in the layouts approved by the planning authorities prior to the date commencement of the Karnataka Town and Country Planning (Amendment) Act, 2015 (Karnataka Act 38 of 2015) shall deemed to be valid and effective as if such levy, assessment and collection of penalty has been made, taken or done under the Principal Act, as amended by the Karnataka Town and Country Planning (Amendment) Act, 2026 and accordingly,-
(a) all acts, proceedings or things done or taken by the planning authority or any of its officer in connection with the levy assessment or collection of such penalty for all purposes be deemed to be and to have always been done or taken in accordance with law;
(b) no suit or other proceedings shall be maintained or continued in any court or tribunal or before any authority for the refund of any such penalty; and
(c) no court shall enforce any decree or order to direct the refund of any such penalty.”
[ACT NO. 43 OF 2026]
