Homebuyers in Bengaluru feel betrayed as builders flout Rera orders with impunity

Time of India

4 hours ago

Bengaluru: For thousands of homebuyers across the city, the dream of owning a home has turned into a never-ending legal and financial nightmare. Despite securing favourable rulings from the Karnataka Real Estate Regulatory Authority (Rera), many buyers allege that builders are openly flouting the law with no consequences, while govt agencies look the other way.
From construction delays and refund refusals to outright defiance of Rera compensation orders, aggrieved buyers say enforcement is virtually non-existent. What began as a hopeful investment has, for many, turned into a fight for justice that drags on for years.
Gopal Agarwal, a 47-year-old chartered accountant based in Whitefield, invested in a project back in 2012 with the promise of possession by 2015. He finally received the flat only in 2019.
The builder initially agreed to pay Rs 10 lakh in compensation but later backed out. Agarwal approached Rera, which passed a favourable order in Oct 2022.
"I'm still running around for execution (of the order). I've visited the deputy commissioner and tahsildar offices more than a hundred times. Even the high court directed the DC to recover the money within eight weeks — nothing happened. The builder managed to get a stay and I'm back to square one.
by Taboola
by Taboola
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Rera is doing its job, but it's toothless without enforcement powers. Revenue officers don't act," he said.
Govind Narayan, a 36-year-old resident of Jalahalli, booked a flat near Electronics City in 2018. Possession was initially promised by Aug 2022, later revised to March 2024. However, construction stopped in 2022 and hasn't resumed since.
"Every time we contact the builder, we're told 'work will start tomorrow'.
It's the same excuse every time. I've invested Rs 37 lakh — my entire savings — and have no home, no returns. The flat's market value is now more than Rs 80 lakh. Even after winning a Rera case and receiving a revenue recovery certificate, there's no enforcement," Narayan said.
Businessman Sudhakar Lakshmanaraja said that despite a 2021 Rera order to recover Rs 46 lakh from a well-known builder, there has been zero progress.
"I've approached everyone — the PMO, CM, housing department, human rights commission — but to no avail. Officers pass the buck. Meanwhile, these fraudulent builders are still operating. What message are we sending to honest citizens?" he asked.
According to data from Rera, 796 enforcement orders have been issued since the Act came into effect. Homebuyers' associations estimate that while roughly 50% of these involve builder refunds, nearly 30% of those refunds are stuck because of non-compliance.
Dhananjaya Padmanabhachar, convener of Karnataka Homebuyers Forum, said: "Rera needs its own revenue collection officer with powers to attach properties of defaulters. Paper orders without enforcement mean nothing to homebuyers."
A senior Rera official admitted the authority's limitations: "We don't have the power to recover money. That lies with the govt. We can pass orders, but without execution powers, enforcement suffers."