Latest news with #KRERA
Hindustan Times
04-06-2025
- Business
- Hindustan Times
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 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.
Hindustan Times
14-05-2025
- Business
- Hindustan Times
Did homebuyers whose property investments doubled in the last two years just get lucky?
With property values almost doubling and EMIs covered by rent for buyers who invested in real estate from 2020 to 2023, many aspiring homeowners on Reddit believe these buyers just got lucky while they missed the bus. Netizens who are yet to buy into real estate are of the opinion that they've missed the bus, 'the ship has sailed', and that the rapid price growth witnessed between 2020 and 2023 is unlikely to repeat itself As property values nearly double and EMIs are covered by rent for those who invested between 2020 and 2023, many aspiring homeowners on Reddit feel that these buyers just got lucky while they've 'missed the bus.' Netizens who have yet to invest in real estate believe the 'ship has sailed,' with the rapid price growth seen between 2020 and 2023 unlikely to repeat. "I keep seeing posts from people who bought real estate during 2020–2023, flexing how their 2BHK or BHK doubled in value, how rents are covering their EMIs, and how it's the best decision they ever made," a Redditor wrote. Netizens say that a 3BHK that costs over 2.3 crore today was valued at ₹1 crore a couple of years back. The rapid price growth seen between 2020 and 2023 is unlikely to repeat, and what once looked like a smart investment now feels out of reach for many, they say. Also Read: Karnataka Tribunal sets aside KRERA order, grants relief to senior citizen after 12-year delay in villa possession "But let's be real for a second, you got lucky. You bought when interest rates were at historic lows, prices hadn't shot up yet, and developers were practically begging people to buy. A 3BHK from a reputed builder for under 1 Cr? That ship has sailed," the post said. The post noted that big gains in real estate have already happened. Not everyone today can or should spend ₹2.3 crore on a flat just because someone who bought earlier says, 'real estate always wins.' "If you made a good or lucky investment, that's great. But don't make others feel bad or push them into risky decisions just to copy something that worked only at a very specific time," the Redditor noted. A few buyers say that between 2020 and 2022, many real estate investors made what were seen as risky decisions at the time, and those decisions paid off. "The market was uncertain. The first wave of COVID-19 hit in 2020, followed by a severe second wave in 2021. During this period, salaries in the IT sector saw a sharp jump, rising by 50% to 100% in some cases, as employees continued working from their hometowns and saved most of their income," he said. But by 2023–24, many people had returned to the cities, with higher incomes, and entered a real estate market that had limited new supply due to the slowdown. The Redditor wrote that those who bought early were not just lucky—they acted when the outlook was unclear, and the rewards followed. Also Read: Bengaluru real estate market's rental listing with ₹8 lakh deposit for a 3BHK sparks debate on social media Some Redditors believe that the real estate market is currently in the slowdown phase of a long-term asset price cycle. "According to this view, the next strong buying opportunity may not come until around 2029. For now, prices are expected to remain stable at current levels, with little room for sharp increases. Over time, inflation is likely to catch up, and as incomes and costs rise gradually, today's prices may begin to seem more reasonable again," the Reddit user added.
Hindustan Times
13-05-2025
- Business
- Hindustan Times
Karnataka Tribunal overturns KRERA order, grants relief to senior citizen after 12-year delay in villa possession
The Karnataka RERA Tribunal (KREAT) has directed Bengaluru-based realtor Sterling Developers to hand over a luxury villa to a 75-year-old buyer after a 12-year delay. Setting aside an earlier Karnataka RERA order, the Tribunal directed Sterling Urban Developers Pvt Ltd to provide physical possession of the villa and pay interest at 9% per annum for each month of delay for five years. "The order dated May 2023, passed by the Karnataka Real Estate Regulatory Authority, is hereby set aside. Sterling Urban Developers Private Limited is directed to hand over the physical possession of the Villa bearing No C-96 to the allottee within one month," the order said. The Tribunal further ordered the developer to pay delay period interest at the rate of 9% per annum for every month delay in handing over possession of the villa till April 2017 under Section 8 of the Karnataka Ownership Flats (Regulation, Sale, Management and Transfer), Act, 1972. Also Read: Receipt of OC alone does not mark project completion: Bengaluru homebuyers urge KRERA to adopt project closure policy The case involved a buyer, Devki Nandan, who had been waiting since 2012 to take possession of the villa, for which she paid over ₹3 crore. The Tribunal also directed the real estate developer to pay delay interest at a rate of 9% per annum for each month of delay until April 2017, as per Section 8 of the Karnataka Ownership Flats (Regulation, Sale, Management, and Transfer) Act, 1972. Nandan entered into an agreement with the developer on September 6, 2012, to purchase a villa for ₹3.2 crore, with possession promised by December 2013. However, despite registering the absolute sale deed in January 2014, the developer failed to deliver physical possession. According to the Tribunal's order, Nandan repeatedly emailed the developer from 2014 to 2019, requesting possession of the villa. When the developer failed to comply despite multiple requests, Nandan filed a complaint with KRERA, seeking an order to hand over possession. However, in May 2023, KRERA dismissed the case, citing that the project had received a partial occupancy certificate (OC) in January 2017—prior to the implementation of the RERA Act, 2016. Also Read: Karnataka has over 2630 delayed real estate projects: KRERA Nandan argued that when the RERA Act came into effect, the development work was still incomplete, and necessary approvals were missing. In fact, the developer admitted that only two-thirds of the project was completed, and the partial occupancy certificate was issued on August 10, 2017—after the Act had already come into force, she pointed out. "As per the findings recorded by KRERA, the project was completed in March 2017 and the developer applied for a partial occupancy certificate in January 2017 itself reveals that the developer had applied for partial OC before completion of the developmental works," the order said. The developer refuted the buyer's claims, arguing that the project in question involved a villa, making certain conditions outlined in the 'User Manual' inapplicable to this case. The developer also stated that they had applied for the Completion Certificate on time, but the Bangalore Development Authority took five months to inspect the property and issue the certificate. Furthermore, the developer argued that the judgments cited by the buyer pertained to high-rise buildings, making those findings irrelevant to the present case, and therefore sought dismissal of the appeal. The Tribunal observed that the buyer's lawyer argued that the OC presented by the promoter was partial and could not be deemed a declaration of project completion, as established by the Karnataka High Court in the case of Ozone Urbana Infra Developers Pvt. Ltd. vs. RERA (MANU/KA/0415/2024). The order said that KRERA, in its earlier decisions relating to other allottees, had taken the view that the partial OC is not a valid document certifying the completion of the project. 'Hence, the findings given by KRERA in the case are contrary to its own stand," it said. In this case, the Tribunal noted that in 2022, KRERA dispatched an engineering team to inspect the property, and the resulting report identified dampness in the ceiling that required repair. "One more thing for consideration is that the developer accepting the ground reality that the project is an ongoing project, got it registered before KRERA. And the fact was taken note of by the Authority and referred to the same at para no 2 of the order," the Tribunal pointed out. The said provision makes it clear that, even if the project work was not completed as and when the Act and Rules came into force, it is obligatory on the part of the developer to register his project before RERA, KREAT said. "Now the Appellant is aged about 75 years. He, being a senior citizen, paid hard-earned money of ₹3.2 crore. Ignoring the factual aspect of the matter, KRERA has dismissed the complaint in a fanciful manner, holding that the provisions of the RERA Act is not applicable to the case on hand," the Tribunal said. Looking from any angle, we did not find any legal force in the order passed by the Authority," KREAT said in its order. Hence, the order is liable to be set aside with a direction to the developer to hand over the physical possession of the villa, it said. has sent a list of queries to the real estate developer. The copy will be updated if a response is received.
Hindustan Times
24-04-2025
- Business
- Hindustan Times
Bengaluru real estate: KRERA orders real estate developer to pay ₹2.5 crore to buyer for failing to deliver apartment
The Karnataka Real Estate Regulatory Authority (KRERA) has directed Mantri Developers to refund ₹2.5 crore to a homebuyer after failing to hand over the promised apartment. The authority also instructed the developer to settle the home loan taken in the buyer's name. "The developer is directed to refund a sum of ₹2.5 lakh towards refund with interest from April 2014 till November 2024. The developer is also directed to close the loan standing in the name of the complainant," the order said. In this case, the buyer, Anant Ramachandran, had booked an apartment at Mantri Webcity in north Bengaluru's Hennur under the pre-EMI scheme and paid about ₹15 lakh with an additional home loan for about ₹65 lakh. Despite the possession date of 2017, KRERA noted that the developer had failed to handover the apartment even after five years. Also Read: Karnataka has over 2630 delayed real estate projects: KRERA KRERA noted that the developer had offered pre-EMI schemes or pre-sanctioned loans to purchase the apartments. The buyer informed KRERA that under the scheme, the developer was to pay off and fully settle the loan's EMI until March 2017. "The buyer paid a sum of ₹15 lakh to the developer in April 2014, and in the same year, in May, the bank disbursed the complete loan to the developer to the tune of ₹65 lakh. The buyer paid several pre-EMIs to the bank after the developer failed to pay the same on the buyer's behalf," the order said. The buyer further told KRERA that as of January 2017, the developer had neither delivered the apartment nor continued loan payments, leading him to email a request to withdraw from the project. Also Read: Karnataka RERA: Projects that applied for OC before RERA came into effect need not be registered The developer told KRERA that the complaint is not maintainable. "The developer pleaded the reason for the delay in completion of the project, such as legal and licensing issues, heavy and continuous rainfall, demonetization, COVID-19 lockdown…," the order said. has sent a list of queries to the real estate developer. The copy will be updated if a response is received. The Authority said that the developer had failed to reimburse all the pre-EMIs to the complainant as agreed under the document, which resulted in the buyer paying money to the financial institution. "The complainant is neither the beneficiary of the property nor of the loan that is restrained by the developer," the order said. Regarding the delay in completion, KRERA stated that the reasons cited by the developer were merely routine compliance and construction-related matters that any project promoter is expected to manage. "Further, the delivery and completion of the project is in March 2017, and the COVID pandemic started after the year 2020. The developer cannot plead the pandemic as a delay," the order said. The authority, therefore, directed the developer to refund the amount within two months of the order and to cancel the home loan taken in the buyer's name.
