BENGALURU: The Karnataka Real Estate Authority (K-Rera) has commenced an investigation into various residential projects that have failed to meet their completion deadlines and have not submitted timely progress reports. According to K-Rera’s recent data, over 2,600 real estate projects are officially labeled as ‘expired’, while more than 2,700 are categorized as ‘lapsed’.
Under RERA guidelines, a project is deemed expired when its registration period ends without the builder applying for an extension. It is classified as lapsed if it remains incomplete without a renewal request, invalidating the registration and potentially exposing the builder to penalties and regulatory actions.
Out of 7,707 registered projects, 2,632 builders have failed to meet their obligations, with the most prevalent issue being delays in flat delivery. Developers are allowed to apply for a one-year extension, but none have done so within the required timeframe.
RERA regulations require builders to declare a completion date when signing initial agreements with buyers and to provide project updates quarterly on the K-Rera portal. Non-compliance can result in penalties of up to 10% of the project cost, with authorities permitted to seize assets from promoters for recovery of penalties and compensation owed to buyers.
Builders must include all project details in their quarterly reports, including funds collected from buyers and expenditures on each component, offering a clear overview of project status and any pending work.
Impact on Buyers
The ongoing situation has raised alarms regarding extended construction delays and their consequences for homebuyers.
Dhananjaya Padmanabhachar, convener of the Karnataka Home Buyers’ Forum, stated: “When a RERA registration lapses, it is the developer’s responsibility to renew it—buyers’ rights remain protected under RERA. However, Karnataka RERA has not delivered justice or provided clear project closure guidelines in over eight years. Alarmingly, the authority does not have a project closure policy. While other states make progress, ours falls behind due to inefficiency and lack of political will. RERA orders often go unenforced because implementation relies on the revenue department, which fails to act. Despite repeated reminders, RERA shifts responsibility. Although the legislation is sound, poor execution is detrimental to homebuyers.”
Rajagopalan R, convener of the Bengaluru Coalition group fighting against illegal constructions, remarked: “The body has been largely ineffective, recovering only Rs 100 crore of the Rs 1,000 crore owed by errant builders. With a lack of transparency and a growing backlog of unregistered projects, buyers are increasingly turning to consumer forums and high courts for redress. For many, purchasing a home is a significant milestone, and delays lead families to juggle EMIs and rent, while one-sided contracts favor builders and lenders. The only thing preventing buyers from walking away is the ongoing buoyancy in the sector.”
