Karnataka Rent Control Act amended: Subletting property now attracts up to ₹50,000 fine

The Karnataka government has decriminalised rental disputes, scrapped jail terms, and imposed steep penalties up to ₹50,000 or double the rent for violations like subletting and illegal eviction.

The Karnataka government has announced major amendments to the Karnataka Rent Control Act, 1999, removing jail terms in rental disputes while imposing hefty fines for violations. The amendments, approved by the state Cabinet, are expected to be tabled during the winter legislative session in Belagavi.

Huge fines replace jail terms

Under the new provisions, penalties under nine clauses have been drastically increased. For example, tenants who sublet property without permission now face fines of up to ₹50,000 or double the rent per month, whichever is higher, until the violation is resolved.

Previously, the same offence attracted a fine of ₹5,000 or double rent, plus possible imprisonment for up to one month.

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Landlords who evict tenants unlawfully, especially when courts have ordered re-letting to the original tenant, will face similar fines up to ₹50,000 without imprisonment.

Real estate agents and middlemen who fail to register with state-appointed rent controllers will now face daily fines of ₹20,000 until compliance. Imprisonment clauses for these defaults have been removed.

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To ease the judiciary’s workload, the state has empowered assistant commissioners (ACs) in municipal areas and tahsildars in urban and rural areas as rent controllers, giving them authority to adjudicate rental disputes across Karnataka.

The biggest takeaway for tenants and landlords: subletting property without permission is now a costly mistake, with fines reaching up to ₹50,000 per month.