BENGALURU: The BDA must adhere to all regulations outlined in the Real Estate (Regulation and Development) Act, including project registration, as it is classified as a promoter when developing layouts and selling plots.
This observation was made by the Karnataka Real Estate Appellate Tribunal in its March 3 ruling, which upheld K-Rera’s directive regarding the Nadaprabhu Kempegowda Layout (NPKL).
However, BDA officials have indicated to TOI that they plan to challenge the tribunal’s decision in the high court.
The case originated from a K-Rera order dated November 7, 2025, following complaints by allottees of the NPKL project. K-Rera addressed these complaints and issued several directives to BDA, which subsequently contested the ruling before the appellate tribunal.
The tribunal dismissed BDA’s claim of lack of jurisdiction, stating that NKPL is an ongoing real estate project that necessitates registration under K-Rera guidelines.
Comprising judicial member Santosh Kumar Shetty and administrative member Mahendra Jain, the tribunal referenced the Rera Act provisions, noting that the definition of “promoter” includes development authorities and public bodies that develop plots or construct buildings for public sale.
It concluded that BDA’s actions in developing layouts categorize it as a promoter under the Act, emphasizing accountability and transparency across the real estate sector.
The tribunal further stated that BDA’s lease-cum-sale agreements with allottees are akin to those made by private promoters, obligating both parties to comply with the specified timelines and possession conditions. BDA is, therefore, required to follow the Rera regulations regarding project registration, promoter responsibilities, and allottees’ rights.
The tribunal dismissed BDA’s appeal during the admission stage, affirming that the provisions of the Act apply to BDA, thus upholding the K-Rera order from November 7, 2025.
