BENGALURU: A proposed cell aimed at streamlining the recovery of dues adjudicated by the state’s Real Estate Regulatory Authority (Rera) has been shelved, much to the dismay of homebuyers. Instead, the government has appointed a special deputy commissioner for Bengaluru Urban district to manage the recovery of outstanding amounts.
Officials explained that discussions took place regarding the creation of a dedicated recovery committee, but the proposal was abandoned due to concerns about the committee’s lack of legal authority for enforcement. Currently, the ability to recover dues lies with individual district deputy commissioners, and agencies are limited to issuing recovery certificates for subsequent action.
To date, 2,394 recovery certificates have been issued, with 317 cases actively undergoing the recovery process.
Previously, the government and Rera had aimed to establish a recovery cell to enforce K-Rera orders. This initiative, announced in July 2025, responded to numerous buyer complaints about builders who disregarded K-Rera directives despite revenue recovery certificates (RRCs) issued against them. Officials noted that the sluggish pace of recovery often compelled homebuyers to turn to the high court for compensation.
“Establishing the cell faced legal and technical challenges,” remarked MS Shankar, general secretary of the Forum for People’s Collective Efforts. He mentioned that this issue was recently addressed with the housing secretary, revealing the appointment of a special deputy commissioner to recover Rera-issued revenue recovery certificates within an eight-week timeframe.
A joint meeting among the revenue department, housing department, and K-Rera could be beneficial in clarifying the special deputy commissioner’s role, according to Shankar. “This proposal had been under consideration for some time, and the officer has now been granted the necessary powers,” he added.
According to data from the FPCE, as of January 23, 2026, a total of 2,325 RRCs—valued at Rs 1,081.84 crore—have been issued. However, only 282 RRCs totaling Rs 110.3 crore have been successfully collected, resulting in a recovery rate of 8.2% in numbers and 9.8% in value.
Homebuyers’ associations are advocating for improved coordination among governmental departments involved in this process. “While Rera lacks direct recovery authority, it’s essential to establish a coordinated mechanism that enables forwarding of dues to revenue agencies. A dedicated team, including Rera personnel, would improve collaboration and tackle homebuyers’ concerns,” stated Satish Mallya, president of the Bangalore Apartments’ Federation.
“A practical reform would involve integrating revenue recovery services into the Sakala framework, ensuring timely handling of RRC cases while instituting accountability measures for overdue cases,” suggested Dhananjaya Padmanabhachar from the Karnataka Home Buyers Forum. He emphasized the necessity for authorities to execute dedicated recovery initiatives and leverage existing legal powers to apprehend non-compliant promoters.
Appointment of Special DC for Recoveries
In April, the revenue department appointed a special deputy commissioner for Bengaluru Urban district to expedite dues recovery. Officials highlighted that this position was established due to the high volume of recovery cases, which overwhelmed regular district officials. The special DC is tasked with managing recovery processes, issuing notices, liaising with departments, and ensuring execution of recovery certificates. Authorities report that nearly Rs 7-8 crore has been recovered since April 2026.
Special DC Jayamadava identified a significant challenge, noting that builders frequently obtain stay orders or transfer properties to relatives prior to court proceedings, complicating recovery efforts. He mentioned proposals to amend laws to allow authorities to locate and secure affiliated properties and accounts, thus augmenting enforcement capabilities.
There are also proposals to enhance the recovery process through the development of an online portal.
Understanding RRC
A revenue recovery certificate (RRC) is issued by the regulatory body when a builder, promoter, allottee, or real estate agent fails to comply with an order to remit compensation, interest, or penalties to homebuyers. Once issued, the amount stated in the RRC is treated as land revenue arrears, which is subsequently sent to district revenue authorities—typically the DC or tahsildar—for collection.
