Karnataka's one-time occupancy certificate (OC) exemption covers residential buildings on plots up to 2,400 sq ft, up to ground plus three floors, within Greater Bengaluru Authority (GBA) limits, with a 20% margin. It was extended on 5 June 2026 from the earlier 1,200 sq ft limit. Its main practical effect has been to let completed houses get permanent electricity connections without an OC.

Updated 13 October 2026. We read a Cyril Amarchand Mangaldas analysis of the notification, Deccan Herald's report on BESCOM's application window, and news coverage of the cabinet decision. The exemption is narrow and conditional. It is not a reason to buy any building without an OC.

What is the OC exemption in Bangalore, exactly?

It came in two steps, according to the Cyril Amarchand Mangaldas note of 6 July 2026.

  • 9 September 2025: an order exempted residential buildings on plots up to 1,200 sq ft, ground plus two floors or stilt plus three, provided they complied with the approved plan and statutory approvals.
  • 5 June 2026: an Urban Development Department notification widened this to residential plots up to 2,400 sq ft, with 20% tolerance, and buildings up to ground plus three floors, within GBA limits. The note links it to section 241(7) of the Greater Bengaluru Governance Act 2024.
  • Conditions stated in the note: building plan approval from the competent authority before construction, compliance with National Building Code 2016 fire and life-safety rules, and adherence to zoning, setback and structural norms.
  • Scope: residential buildings only. The note says the notification is silent on commercial or industrial buildings.

How does the OC exemption work for electricity connections?

Power utilities had been asking for an OC before giving permanent connections. The Realty Today reported in September 2025 that a Supreme Court ruling had made OC mandatory for power connections, leaving about 3.3 lakh completed buildings in Karnataka without a regular supply.

Deccan Herald reported on 25 June 2026 that a state order dated 22 June 2026 allowed permanent connections for residential buildings without an OC on plots up to 2,400 sq ft with 20% variation, for buildings completed by 31 May 2026. Applicants had 15 days from the order. BESCOM set 6 July 2026 as the last date and verified buildings using geo-tagged photographs taken with the applicant present.

Construction World reported about 3 lakh pending applications statewide, about 1 lakh of them in BESCOM's area, and that buildings up to G+3 or stilt plus four floors qualified. That window has closed. We found no report of a reopening as of 13 October 2026.

Is OC compulsory in Bangalore?

For apartments and larger buildings, yes. The exemption applies only to small residential buildings within the plot and floor limits above. An apartment project, a commercial building, or a house on a bigger plot still needs an OC from the planning authority.

The exemption does not legalise construction that strays from the sanctioned plan beyond the permitted 20% deviation, and it does not replace plan approval. A building put up without any sanctioned plan does not become compliant because it got a power connection.

For a clear explanation of what an OC and a completion certificate each prove, see Occupancy Certificate vs Completion Certificate in Bengaluru: What to Demand Before You Take Possession

Does the OC exemption cover 30x40 and 40x60 sites?

A 30x40 site is 1,200 sq ft, so it was already covered by the September 2025 order, subject to its floor limit of ground plus two or stilt plus three. A 40x60 site is 2,400 sq ft, which is the new upper limit from 5 June 2026, with buildings up to ground plus three floors.

Sources describe the 20% figure in two ways. The Cyril Amarchand Mangaldas note calls it a tolerance on the 2,400 sq ft plot size, while Construction World and the Chief Minister's announcement, as reported by Siasat, describe it as a permitted deviation from the approved plan. Until you have read the notification itself, do not assume a 50x80 or other larger plot qualifies, and do not assume any built-up deviation is covered.

The CM's June 2026 announcement also mentioned buildings of up to 2,500 sq ft and statewide coverage, but the notification and the BESCOM order we could verify both use 2,400 sq ft. For a purchase decision, rely on the order that applies to the specific property, not on the announcement.

When is it acceptable to buy a house without an OC?

Our view, based on the conditions in the notification: a house without an OC can be a reasonable purchase only when all of these hold.

  • The plot is within GBA limits and no larger than 2,400 sq ft, or within the 20% margin as the notification applies it to your case.
  • The building is residential and no taller than ground plus three floors.
  • There is a sanctioned building plan issued before construction, and what is built matches it within the tolerance. Measure on site or have an engineer do it.
  • The property has an A-khata or an e-khata generated from a valid record, and the title chain and encumbrance certificate are clean.
  • A permanent electricity connection is already in place, or documents show the owner applied within the 2026 window.
  • Your lender has agreed in writing to finance it. Banks set their own policies on houses without an OC.

When should you walk away?

The exemption has been oversold in some listings. These are the situations where it does not help.

  • Apartments. A flat in a building without an OC is outside the exemption, and the Karnataka Apartment Bill 2026, once in force, would penalise a promoter who hands over flats without an OC. See Karnataka Apartment Bill 2026: What Changes for Flat Buyers
  • No sanctioned plan, or a plan for fewer floors than built. Extra floors beyond what the exemption allows remain a violation.
  • Commercial use, such as shops on the ground floor, which the notification does not address.
  • B-khata or revenue-site properties with title questions. An OC exemption does not fix khata status. The 2% B-to-A betterment window closed on 23 August 2026; see A-Khata, B-Khata and e-Khata in Bengaluru (2026): What a Buyer Must Check Now
  • Plots outside GBA limits. The extended notification is described as applying within GBA.

What documents should I ask the seller for?

  • Sanctioned building plan and licence, with the approval date before construction began.
  • Proof the building was completed by the relevant cut-off, such as tax receipts or the electricity application date.
  • BESCOM permanent connection sanction, or the application number from the June–July 2026 window.
  • e-khata or A-khata extract; check it at e-Khata guide, Bangalore
  • Title deeds for at least the last 30 years and a current encumbrance certificate.
  • A structural stability certificate from a registered engineer for G+2 and G+3 buildings.