After a year, the high court struck down the Karnataka government's domicile reservation law. Now, the National Law School of India University (NLSIU) in Bengaluru has reserved 25% of its seats for students from Karnataka for courses beginning in 2021-22. The state government had approached the Supreme Court after an amendment to the NLSIU Act passed by the state Assembly and Council in 2020 was struck down by the Karnataka High Court in September 2020.

A release by the university cited ‘NLSIU Inclusion and Expansion Plan 2021-24’ as the basis for the reservation. According to the statement, the university's governing bodies have reviewed and adopted the plan, which aims to increase student diversity by admitting students from marginalised and disadvantaged backgrounds and gradually increasing the student intake. According to an official, a special leave petition has been filed with the Supreme Court, which is hearing Karnataka's appeal, to inform the court about the plan and the reservation decision.

The revised notification for 2021-22 stated, "Candidates who have studied for not less than 10 years at a recognised educational institution in Karnataka shall be eligible to be considered as Karnataka students". The BA, LLB (Hons), and LLM programmes are all eligible for the 25% quota. According to the university's announcement, eligible Karnataka candidates who wish to take advantage of the reservation must do so in their CLAT 2021 application under the NLSIU, Bangalore reservation tab. It has also recommended students to maintain their school-issued study certificates in hand, which must be submitted throughout the counselling/admission procedure in order to claim the 25% reservation.

Karnataka students are eligible for 30 of the 120 seats available for BA, LLB (Hons), and 13 of the 50 seats available for LLM. Separate seats have been reserved for students from the SC, ST, and General Merit categories in this category. According to a press statement from the university, NLSIU presently has 660 students enrolled in its on-campus programme. The university plans to provide a 30 percent reservation for women and a 10% reservation for the Economically Weaker Section during the following four academic years.