Bengaluru: Tenants in Karnataka who sublet rented premises without the landlord’s consent will soon face a hefty penalty of Rs 50,000, a 900% hike from the current fine, as per amendments proposed under the Karnataka Rent Act.

The Karnataka Rent (Amendment) Bill, which includes these stricter provisions, has been cleared by the scrutiny committee headed by Law and Parliamentary Affairs Minister H.K. Patil. It is expected to be tabled in the upcoming session of the state legislature, as reported by Deccan Herald on Thursday.

Currently, the penalty for unauthorised subletting is Rs 5,000 or double the amount received from subletting—whichever is higher—or imprisonment for up to one month. The proposed amendment will replace this with a fine of Rs 50,000.

In a move to deter landlords from exploiting tenants, the bill also proposes increasing the penalty for landlords who demand or receive payment for granting consent to sublet. Such landlords will now face a fine of Rs 30,000, up from the existing Rs 3,000. Imprisonment of up to one month is being dropped, according to the amendment proposed.

The amendment also targets unregistered brokers and middlemen involved in property rentals. Under Section 20 of the Act, they are required to register with the ‘controller’—typically an assistant commissioner in large cities, a senior tahsildar in smaller towns, or a tahsildar in rural areas, added the report.

Failure to register will now attract a daily penalty of Rs 25,000, a massive increase from the current Rs 2,000. Moreover, a daily fine of Rs 20,000 will be levied for each day of continued violation, compared to the existing Rs 2,000.

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Bengaluru (PTI): Karnataka Commerce and Industries Minister M B Patil on Monday asserted that Aequs continues to expand in the state and that its proposed investment in neighbouring Tamil Nadu was a business decision aimed at diversification, not a shift away from Karnataka.

Reacting to criticism on social media over reports that the Karnataka-based firm had signed a major investment deal in Tamil Nadu's Krishnagiri district for setting up a specialised aerospace and defense manufacturing cluster, he said the state government was fully aware of the company's plans and remained confident about its long-term commitment to Karnataka.

"While we welcome every major investment in India, would like to clarify a few points," Patil said in a post on 'X'.

Aequs was significantly expanding its footprint within Karnataka, including a Rs 3,000 crore investment in Kolar for electronics manufacturing.

"Its recently approved Rs 1,500 crore ECMS project will also be grounded in the state. Karnataka remains central to its long-term strategy," he said.

Patil added that the government had prior knowledge of the TN proposal.

The government was already informed and aware that the TN investment is a business decision aimed at geographic diversification and de-risking operations, not a shift away from Karnataka.

"Healthy competition between states strengthens India's manufacturing ecosystem," he said.

Emphasising the state's focus on high-technology sectors, Patil said, "We remain committed to deepening Karnataka's leadership in aerospace and advanced manufacturing, and our engagement with industry partners is strong and ongoing."

The Aequs Group has pledged Rs 4,000 crore to bolster Tamil Nadu's aerospace manufacturing capabilities at the SIPCOT-Shoolagiri Industrial Park in Krishnagiri district.

The group proposes to establish a specialised aerospace and defense manufacturing cluster for the production of aircraft engines, gearbox components, and precision engineering parts. This initiative is expected to provide employment to 7,000 individuals.