KRERA update: Over 2,600 real estate projects delayed in Karnataka; Bengaluru worst hit
More than 2,600 real estate projects across Karnataka have missed their scheduled completion deadlines, with many now facing indefinite delays. Bengaluru is the worst-affected, accounting for 1,301 of these stalled developments. Additionally, 1,007 projects have applied for deadline extensions, which are currently under review, according to data from the Karnataka Real Estate Regulatory Authority (KRERA).
"The public is hereby informed that the project registration period for the following projects has expired and has yet to be renewed. The public is hereby warned that dealing with these projects would be at their own risk," a message on the KRERA website said.
Also Read: Karnataka has over 2630 delayed real estate projects: KRERA
Regulatory hurdles remain one of the most common causes of project delays, experts say. Developers often struggle to obtain approvals and clearances from multiple government departments—including those related to environment, land use, and local municipal bodies. These processes can take months or even years, significantly pushing back timelines before construction even begins.
Financial constraints are another major reason behind stalled projects. Developers typically rely on customer advances and loans to fund construction. When sales slow or financing becomes difficult to secure, projects can come to a standstill. In many instances, funds are diverted to other ongoing developments, resulting in a cash crunch and further delays. This trend has become more pronounced in recent years, as several large real estate firms grapple with mounting debt and liquidity issues.
Poor planning and weak project management also contribute to delays. Some builders launch projects without conducting proper feasibility studies or miscalculate the costs and timelines involved, leading to execution challenges down the line, experts said.
Also Read: Strict compliance with RERA provisions crucial to restoring trust in housing sector: PM Modi
As of December 31, 2024, real estate developers in Karnataka owe homebuyers approximately ₹667 crore in refunds due to delays in handing over apartments. This figure comes from official records maintained by the Karnataka Real Estate Regulatory Authority (KRERA), as reviewed by HT.com.
According to the document, KRERA had approved 1,660 recovery claims amounting to ₹758.8 crore. However, refunds were successfully recovered in only 233 of those cases. This amounts to ₹91.8 crore—just 14% of the total value of recovery orders issued by the authority.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
2 hours ago
- Time of India
MO Alternates secures Rs 1,050 crore from complete exits in second realty fund
Motilal Oswal Alternates (MO Alternates), the alternative investment arm of Motilal Oswal Group , has made exits worth over Rs 1 ,050 crore from all 14 investments under its second real estate fund, India Realty Excellence Fund II . The fund, with a corpus of Rs 489 crore, focused on providing structured capital to developers for mid-income residential projects across key urban markets in India. The capital was deployed in cities with significant housing demand and was aimed at supporting project completion and delivery timelines. With this, the fund--having invested Rs 680 crore including reinvestments--has delivered a gross internal rate of return (IRR) of 18.3%, achieving full exit in line with its stated investment philosophy and return objectives. 'The closure of IREF II reinforces our belief in disciplined investing backed by on-ground insights, strong governance, and a relentless focus on execution. Looking ahead, we remain highly optimistic about the Indian real estate sector. With increasing formalisation, stronger balance sheets, and a growing appetite for institutional capital, we believe this is a defining decade for real estate in India,' said Vishal Tulsyan, Co-founder and Executive Chairman, MO Alternates. Investments and exits were made in projects of developers such as Kolte Patil Developers , Casagrand Group, Shriram Properties , and others. The fund's cycle reflected typical timelines for structured real estate investments in the mid-income segment and the exits were achieved through repayments and project completions. Live Events 'This has been a deeply instructive fund cycle. The importance of proactive asset management--spotting stress early, taking swift action, and maintaining developer alignment--has stood out as a key differentiator,' said Saurabh Rathi, MD & Co-Head of real estate funds at MO Alternates. According to him, the portfolio's diversification across cities and counterparties helped it mitigate concentration risks during volatile periods. 'The fund's ability to deliver superior risk-adjusted returns despite a challenging macro environment, is a testament to our investment discipline and active asset management approach,' Anand Lakhotia, MD & Co-Head of real estate funds at MO Alternates. According to him, the fund navigated disruptions including demonetization, implementation of RERA and GST, the NBFC liquidity crisis, and COVID-19--which affected sales, funding, and execution--yet maintained a resilient portfolio through capital protection, disciplined underwriting, and active monitoring, enabling profitable exits from all investments. MO Alternates' cumulative assets under management for real estate stand at over Rs 10,000 crore across six real estate funds and co-investments. The platform has made over 180 investments and secured more than 110 complete exits. Overall, the alternative investments platform manages more than $2 billion in cumulative AUM across real estate and private equity.
Time of India
12 hours ago
- Time of India
Homebuyers in Bengaluru feel betrayed as builders flout Rera orders with impunity
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 Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Buy Brass Laxmi Ji Idol For Wealth, Peace & Happiness Luxeartisanship Shop Now Undo 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."
&w=3840&q=100)
Business Standard
15 hours ago
- Business Standard
Approval hiccups hit schedule, profits of MMR and Bengaluru realty majors
The approvals were earlier handled by the state government authorities. MMR is said to be the most affected market by this decision Prachi Pisal Pune Listen to This Article Challenges of environmental clearance in Mumbai region and an evolving e-Khata portal in Bengaluru coupled with lengthy approval processes -- that of land use, building plan and layout, fire safety etc. -- have been hitting real estate developers' launch schedule, project viability, and balance sheets. 'Land acquisition complexities, delayed environmental clearances, and slower municipal approval processes continued to cause project delays and added execution risk. While regulatory reforms like Rera have improved sectoral transparency, procedural hurdles remain particularly acute for new developments and smaller players,' a recent report by Savills noted. Pending environmental approvals According to an order issued by
