The Karnataka High Court directed the state government to set up and operationalise a Municipal Trust Property Management System (MTPMS) as a single statewide registry for municipal properties, including assigning a Trust Property Identification Number and requiring all municipalities to complete a comprehensive property inventory within 90 days.

Municipalities must reconcile municipal and revenue records and then classify, risk-grade, physically demarcate, and GIS geo-tag identified properties, tightening controls over record changes by requiring notice, enquiry and formal orders. The court also restricted any sale/lease/alienation of Section 81 “municipal property” to strict KMC Act compliance and government approval where required, reducing discretion for local bodies to transact such land. State- and district-level committees led by deputy commissioners must audit past transfers, encroachments, unauthorised construction and land-use changes, creating a near-term enforcement pipeline that can trigger reversals, evictions, and transaction delays for affected parcels.