BENGALURU: In a significant move to protect homebuyer rights and promote compliance, the Karnataka Real Estate Regulatory Authority (K-RERA) has taken action against 155 promoters in the state for failing to submit their required quarterly reports. This crackdown serves as a stern warning to builders who do not provide timely updates on their projects.
Promoters who do not comply may face penalties of up to 5% of the total estimated project cost along with Rs 25,000 for each quarter missed. However, the 155 builders have not yet been officially labeled as defaulters. A K-RERA officer stated, “If they do not file returns by the end of the current financial year, necessary action will follow.”
Starting April 1, K-RERA plans to initiate recovery processes for any delayed or missing quarterly reports. The authority offers a grace period until March 31 for promoters—including those involved in related legal petitions—to submit overdue updates without incurring penalties.
On February 7, K-RERA had released a circular outlining fines and deadlines for the submission of quarterly updates by promoters who had previously delayed or skipped mandatory updates from 2017-18 to 2024-25. This follows an earlier circular from September 3, 2020, and a Karnataka High Court order dated September 19, 2025.
Several promoters contested the 2020 circular in the Karnataka High Court, which ultimately annulled the order. Nonetheless, the court specified that this would not hinder the lawful imposition of fees. Builders acknowledged that while quarterly filings are generally procedural and technical, the penalties—though justified—should be “acceptable, nominal, and proportionate.”
A senior official from K-RERA highlighted the importance of timely quarterly reports, as these assist the authority in monitoring project progression. “In case of delays, we can identify such projects at an early stage. Should homebuyers raise a complaint, we can take action against the promoter,” he explained.
While homebuyers generally welcomed this move by K-RERA, opinions on its effectiveness were mixed. Some saw it as facilitating proactive measures by authorities if deadlines are disregarded. However, many felt the penalties were insufficient to drive meaningful change. Despite previous circulars, monitoring of quarterly updates remains inadequate, raising concerns about accountability amidst uncertainty around project completion policies.
