Illegal Subletting Gets Costlier In Karnataka, 900% Penalty Hike Under Amended Rent Act

Last Updated:August 08, 2025, 09:49 IST

Even landlords who allow subletting — especially those who charge tenants for granting consent — will face stricter consequences as fines rise tenfold, from Rs 3,000 to Rs 30,000.

Bengaluru’s rental market is facing growing scrutiny. (Pexels/Representative Image)

Tenants in Karnataka who sublet their rented premises without the landlord’s consent are now staring at a steep penalty hike — from Rs 5,000 to Rs 50,000 — under proposed amendments to the Karnataka Rent Act of 1999. The punishment marks a 900 per cent increase, signalling the government’s intent to crack down on unauthorised subletting across the state.

The amendment, cleared by a legislative scrutiny committee headed by Law and Parliamentary Affairs Minister HK Patil, is expected to be tabled in the upcoming monsoon session of the Karnataka legislature, confirmed an official from the law department.

It comes at a crucial time when the rental market in Karnataka, especially in cities like Bengaluru, is growing rapidly — and they have also been a spike in disputes between landlords and tenants.

And it’s not just tenants who are under the scanner. Even landlords who allow subletting — especially those who charge tenants for granting consent — will face stricter consequences. The fine for such landlords is set to rise tenfold, from Rs 3,000 to Rs 30,000. However the provision for up to one month of imprisonment is being dropped as part of the amendment.

What does the current law say?

Under Section 54 of the Karnataka Rent Act, 1999, tenants found subletting without authorisation can be fined up to Rs 5,000, or double the sublet rent amount per month, whichever is higher. The law also allows for imprisonment up to one month or both penalty and imprisonment, depending on the offence.

The new provisions aim to tighten these rules, focusing on monetary penalties to deter violations rather than jail terms.

The proposed amendment also takes aim at unregistered property brokers and middlemen, who operate without formal registration under Section 20 of the Act.

Brokers are required to register with a designated ‘controller’ — an Assistant Commissioner in major cities, a Senior Tahsildar in smaller towns, or a Tahsildar in rural areas. Failure to register will attract a daily fine of Rs 25,000, up from the existing Rs 2,000. Repeat violations will bring in an additional Rs 20,000 per day, it is learnt.

Under the new amendment, those who fail to register will be fined Rs 25,000 per day, up from the current Rs 2,000. Repeat violations will invite an additional daily fine of Rs 20,000, again a tenfold increase.

As part of this broader overhaul of the two-decade-old law, the government is also going digital . A new portal has been introduced to allow landlords and tenants to register rental agreements online. This move is meant to streamline the process, reduce disputes, and bring more transparency to rental deals — especially in urban areas where informal agreements are the norm.

The government is also looking at tweaking rental caps to better reflect market conditions. This is being done with the dual aim of ensuring landlords get fair returns, while also shielding tenants from sudden and excessive rent hikes.

In a push to protect tenant rights, landlords will now be required to serve adequate notice before eviction — a safeguard aimed at preventing arbitrary and forceful removals. And in an attempt to push more affordable housing into the market, landlords who rent out properties below a specified threshold will be offered tax breaks and subsidies as incentives.

Rental disputes, which often drag on for months or even years in civil courts, will now be handled more swiftly. A fast-track dispute resolution system is being brought in to reduce legal delays in courts, offering tenants and landlords a quicker way to resolve their issues.

Rohini Swamy

Rohini Swamy, Associate Editor at News18, has been a journalist for nearly two decades in the television and digital space. She covers south India for News18’s digital platform. She has previously worked with t...Read More

Rohini Swamy, Associate Editor at News18, has been a journalist for nearly two decades in the television and digital space. She covers south India for News18’s digital platform. She has previously worked with t...

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August 08, 2025, 09:49 IST

News india Illegal Subletting Gets Costlier In Karnataka, 900% Penalty Hike Under Amended Rent Act

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