BENGALURU: The Karnataka Real Estate Regulatory Authority (K-Rera) has collected ₹1.5 crore in penalties from builders for failing to timely submit their mandatory quarterly progress and annual audit reports between April 1 and July 9, 2026. This initiative aims to enforce compliance and enhance transparency for homebuyers.
This recovery follows a circular issued by K-Rera on July 2, emphasizing its compliance measures and stating that recovery actions against non-compliant promoters would commence on July 16. The circular builds on previous warnings dated January 20, February 7, February 20, and June 19, which outlined penalties for late quarterly filings.
Officials indicated that these reports enable the authority to oversee project timelines and progress, ensuring that developers stay on track with their approved schedules. This proactive approach helps catch potential delays early, improving transparency for homebuyers regarding project statuses.
The authority reminded promoters that submitting quarterly updates is a statutory requirement under the Real Estate (Regulation and Development) Act-2016. These updates must be uploaded to the K-Rera portal within 15 days following the end of each quarter.
For the fourth quarter of 2025-26, 2,344 projects were obligated to submit Quarterly Progress Reports; only 1,619 complied. Similarly, 2,877 projects needed to file annual audit reports for 2024-25, with 2,073 completing the requirement. Officials noted that many promoters are submitting late returns after paying the associated fines.
K-Rera imposes penalties for late annual audit submissions based on project costs. Projects under ₹25 crore incur a ₹20,000 fine, while those between ₹25 crore and ₹50 crore face a ₹25,000 penalty. For projects valued between ₹50 crore and ₹100 crore, the fine is ₹50,000, escalating to ₹1 lakh for projects exceeding ₹100 crore.
The authority pointed out that the online filing system has been operational since the second quarter of 2018-19, yet many promoters continue to miss deadlines. As a result, it is implementing a fixed penalty of ₹25,000 for each quarter of delayed or missing quarterly updates during 2026-27, totaling an annual penalty of ₹1 lakh.
Builders argue that the quarterly project progress report (QPR) submissions are largely procedural and technical. They assert that delays do not equate to non-compliance or project issues, often resulting from practical circumstances like the unavailability of updated financial data, pending certifications, or the time taken to gather comprehensive project information.
A builder commented, “Timely submission of these reports can be challenging as professionals responsible for certifications have multiple compliance tasks, especially during peak periods. Delays may arise from genuine issues, such as incomplete data or certifications not being received on schedule. These delays should be viewed as procedural rather than major violations like project delays or missing annual disclosures. It’s crucial for the authority to assess the nature of delays before imposing penalties.”
Homebuyers welcomed the stricter enforcement of quarterly reporting, highlighting that it would facilitate monitoring construction progress and pinpoint delays sooner.
