Latest news with #KarnatakaRealEstateRegulatoryAuthority
Time of India
9 hours ago
- Business
- 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."
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.
Time of India
04-05-2025
- Business
- Time of India
Karnataka RERA, just a paper tiger: Home buyers
The Karnataka Real Estate Regulatory Authority ( K-RERA ), established to protect homebuyers and regulate the real estate sector, is now being criticised for its lack of enforcement, raising concerns about whether it has become a 'toothless tiger.' K-RERA data reveals that of the 1,660 recovery orders issued involving `758.85 crore, only 233 cases have seen action, resulting in a recovery of `91.88 crore. A staggering 1,427 cases, amounting to `666.97 crore, remain pending, with little to no enforcement action taken against the defaulting builders. Eight years after the implementation of the Real Estate (Regulation and Development) Act in Karnataka, homebuyers who once hoped the legislation would resolve their grievances are now disillusioned. Many are withdrawing their cases, citing K-RERA's ineffectiveness in ensuring justice or compliance with its orders. On March 19 alone, over 10 cases were withdrawn by frustrated buyers. Several homebuyers fighting prolonged battles allege that despite receiving favourable orders from K-RERA, builders are not complying. Even recovery orders have failed to bring results. Inaction against unregistered projects Another growing concern is the lack of action against unregistered housing projects. Since 2017, over 1,050 complaints have been filed with K-RERA regarding unregistered projects. In most cases, the authority has merely issued notices to builders and taken no further action, prompting complainants to abandon their cases. As a result, many homebuyers are now opting for alternate legal routes, including approaching the High Court. Speaking on the issue, a home buyer said, 'K-RERA has failed to deliver justice. It is nothing more than a paper tiger. In the case of Orion Urbana alone, more than 590 complaints have been filed, and 214 of them have received orders directing the builder to repay crores of rupees. Yet, no action has been taken to enforce those orders. We are now taking our fight directly to the High Court.'
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.
