BENGALURU: The Karnataka Home Buyers Forum has presented a memorandum to Chief Secretary Shalini Rajneesh, urging the state government to address long-standing issues that impact countless homeowners, particularly concerning ownership rights and regulatory gaps. “We want to highlight that homebuyers in Karnataka face significant challenges in asserting their ownership rights,” reads the memorandum. The forum detailed key obstacles and proposed solutions for the Chief Secretary’s consideration, advocating for the interests of millions affected.
One major issue raised is the Bruhat Bengaluru Mahanagara Palike’s (BBMP) failure to update khata mutation records for apartment owners. Despite having registered their flats, many owners discover their names absent from the khata documents essential for establishing legal ownership. The forum referenced a recent Supreme Court verdict (CML Appeal No. 3954/2025, dated April 7, 2025) that emphasized the significance of revenue records in determining property rights.
Another critical concern is the absence of a project closure policy under RERA in Karnataka. The forum noted that even though developers are required to register their projects with RERA, there is a lack of a structured process to ensurecompletion in accordance with the Act’s requirements. They urged the government to implement a project closure framework for compliance.
Furthermore, the forum highlighted that RERA currently lacks Revenue Recovery Officers, leading to inadequate enforcement of compensation or refund orders for homebuyers. “We urge the Hon’ble Chief Secretary to recommend the appointment of revenue officers within RERA to ensure timely money recovery,” the memorandum stated. Additionally, they raised concerns regarding the lack of a defined policy on Apartment Owners’ Associations. “Neither RERA nor the Housing Department has issued guidelines for registering such associations,” the forum mentioned, pointing out the confusion stemming from multiple overlapping Apartment Ownership Acts in Karnataka and the absence of a designated department for implementation.
To address these issues, the forum submitted a draft for a new Apartment Ownership Act to the state government in December 2023 and filed Writ Petition 202/2025 in the High Court seeking appropriate directives. “We request the Chief Secretary to direct the relevant department to release the new Act for the benefit of homeowners across the state,” concluded the memorandum.
K-RERA proposes recovery cell for builder dues
In response to escalating complaints from homebuyers and the need to recover overdue dues from non-compliant builders, the Karnataka Real Estate Regulatory Authority (K-RERA) has suggested establishing a dedicated recovery cell within the Revenue Department. This unit aims to expedite the collection of over ₹650 crore in penalties from builders who have violated RERA regulations, including delays in home delivery.
Although recovery certificates (RRCs) have been issued, many developers have failed to comply, prompting K-RERA to pursue stronger enforcement measures. The proposed cell would be led by a Special District Collector, supported by two Tahsildars and additional staff, empowered to seize and auction assets under both RERA and revenue legislation.
K-RERA data shows that only ₹18.7 crore has been recovered from 62 cases out of 565—merely 3% of the total dues. Approximately ₹347.44 crore remains outstanding across 594 cases, with 10 key developers alone accountable for ₹347 crore. Orion Urban Infra tops the list of defaulters, with 229 cases and dues amounting to ₹201 crore, of which only ₹7.53 crore has been collected. The Forum for People’s Collective Efforts, a homebuyers’ group, welcomed the proposal, noting that Karnataka would become the second state in India to establish such a recovery unit.
