Small plot owners in Bengaluru have a reason to celebrate. The city authorities have announced that Occupancy Certificates (OC) are no longer required for plots up to 1,200 sq ft, making it easier to build homes and complete registrations. This new rule is expected to reduce paperwork, save time, and offer much-needed relief to individual property owners. Read this blog to understand the complete details of this announcement.
What is an Occupancy Certificate (OC)?
An occupancy certificate is a legal document granted to residents after a new building construction is finished. It is provided by the planning authority or the local government to certify that the building follows safety regulations, approved building plans, and construction standards.
Before providing this certificate, municipal authorities will carry out a site inspection to ensure it fulfils all the prescribed regulations. In older days, this certificate was compulsory for all buildings to get essential services like electricity, water, and sanitation.
What is the New Change in the Occupancy Certificate in Karnataka?
On September 9, 2025, the Karnataka government announced a regulatory relaxation for homeowners in the Greater Bengaluru region. Urban Development Department Deputy Secretary (GBA, BBMP-1), N.K. Lakshmesagar issued the directive to the Chief Commissioner of the authority.
The updated rules are applicable under the following terms:
- Residential homes built on plots of up to 1,200 square feet
- With either ground + 2 or stilt + 3 structure
- Located within the Greater Bengaluru Authority area
- The plan sanction must have a duly approved building plan from the local authority (BBMP / BDA / Greater Bengaluru Authority)
Under these conditions, residents will not be required to submit an Occupancy Certificate (OC) to obtain basic utility services.
Legal Basis of This Announcement
This new exemption law is being made under the powers given by the Greater Bengaluru Governance Act, 2024. Mainly, Section 241(7) of that Act empowers the government to exempt certain classes of buildings from OC requirements.
This OC exemption aligns with the government’s broader initiative to offer transparent and time-bound services to citizens, building on the success of the ‘Nambike Nakshe’ system.
Note: Nambike Nakshe/Map is an automated online software that approves the building plan draft sketch on the day of submission and provides final approval within 15 days.
Why This Relief Matters or Rationale for Residents
The following are the benefits achievable by this change:
Reducing Delays
Previously, obtaining an occupancy certificate (OC) required detailed site inspections and verification of the constructed building against approved plans. This process created a heavy workload for local authorities and often caused delays, even for small houses. Securing the OC and utility connections could take a long time, making it difficult for owners of smaller plots, especially 30×40 sites, to complete their projects. The new OC exemption simplifies this procedure, giving small building owners a faster and more hassle-free experience.
Clearing Application Backlogs
According to an estimate, a large number of applications are pending with BBMP, BDA, BESCOM, and other government bodies. Small buildings were clogging up, consuming inspection resources. The OC exemption helps reduce this workload.
Encouraging Regularisation & Legal Compliance
When OC is no longer a hurdle for homeowners, they focus on obtaining plan sanctions, zoning, and statutory compliance. This could even help to regularise many small houses that may have been built informally and are now being built with plan approvals.
Cost Reduction
The overall fees for inspections and other charges will be minimised. As formalities will be reduced for small homeowners.
What Remains Unchanged / What Owners Must Still Do
Although the OC exemption is a relief, the following compliance is still essential to avoid later problems:
- Building plan approval is still mandatory for all-sized constructions. The plot owner must get approval for the building plan from the relevant authority.
- Zoning, setbacks, structural safety, and usage norms must still be followed as per applicable local building bylaws.
- This applies only to residential use. For commercial, mixed-use, and larger buildings, this exemption does not apply.
- Any deviation from approved plans can still lead to penalties.
- Although OC is no longer required, service providers may still need proof of plan sanction and alternate documents.
- Homeowners must obtain fire safety clearances, environmental permissions, and structural certifications as per existing laws.
- If you want to take a home loan or mortgage, banks often ask for an OC as part of the documentation.
Limitations of OC Exemption
Many experts debated about these limitations:
- Without OC, stricter zoning rules and planned development may not be enforced.
- Builders might misuse this exemption and put up buildings without proper approval. This could lead to more illegal constructions.
- In the long run, it may affect city planning and compromise the safety of residents.
What Owners Should Do to Make the Best Use of the Exemption
To make the best use of this OC exemption, the small homebuilder and small homeowner need to follow these tips:
Building Plan Approval: Obtain the permit for your house plan from BBMP / BDA / Greater Bengaluru Authority. Keep all copies of the sanction and approved drawings.
Follow the Approved Plan: Once you obtain the permitted house plan, you must follow the same plan for project execution. No deviations in height, setbacks, or structural design. Any single change should also require approval. Keep the approved plan safely; this will act as proof of compliance in the future if needed.
Maintain Safety Standards: Build your home in accordance with all relevant safety regulations, including fire safety and structural integrity. This will help you with insurance, resale, and family safety.
Obtain NOCs: Since OC is not required for small house owners, you will need to obtain water NOCs, electricity NOCs, environmental NOCs, and fire NOCs, depending on your house’s location. To use them as alternate documents.
Document Everything: Keep the major documents like plan approvals, marked-up drawings, construction invoices, the house construction contract agreement, and contractor details safely. These help in resale, home loans, and any legal disputes.
Stay Updated on Notifications: Ensure you are aware of the government’s new orders and notifications for more details, and define forms/procedures. Owners should track official releases from the BBMP / Karnataka Urban Development Department.
Conclusion
By eliminating the occupancy certificate requirement for small buildings, the government focused on reducing bureaucratic bottlenecks. At the same time, the government still plans to watch over construction through other rules (regulatory oversight), so safety and planning are not completely ignored. It promises to reduce red tape, cut delays, save costs, and simplify the process of residential construction for small plot owners.
However, the exemption is not total deregulation. Plan approvals, compliance with local building bylaws, safety norms, and usage restrictions remain in force. As a homeowner, you should act carefully, maintain thorough documentation, obtain necessary approvals, ensure quality, and regularly check with utility and financial institutions.
Frequently Asked Questions
Is OC not required for 1200 square feet?
Yes. In Karnataka, if the building also follows the terms below, OC is not required
- With either ground + 2 or stilt + 3 structure
- Located within the Greater Bengaluru Authority area
Is OC not mandatory in Bangalore?
No, Occupancy Certificates (OC) are not an exception for all types of buildings in Bengaluru. They must meet a few conditions to qualify for that exception.
What is OC’s full form?
OC’s full form is Occupancy Certificates
Is it okay to buy property without OC?
No, it is generally not safe to buy property without an Occupancy Certificate (OC), as it carries significant legal, financial, and practical risks, including potential demolition, denial of essential utilities, inability to get loans or sell the property, and penalties.
Is OC mandatory in BESCOM?
Until recently, it was mandatory for all buildings. However, the new system allows small homeowners to apply through an online portal without OC.