BENGALURU: Homebuyers in Bengaluru and other parts of Karnataka can finally see some hope as the government is taking action against non-compliant builders. A dedicated ‘Recovery Cell’ is nearing establishment to ensure that real estate developers who fail to adhere to Karnataka Real Estate Regulatory Authority (K-Rera) orders regarding buyer compensation are held accountable.
This step comes after prolonged frustrations faced by homebuyers who didn’t receive property ownership or compensation, despite clear orders from K-Rera. Rera chairman Rakesh Singh informed TOI that most groundwork has been done, and a final decision regarding whether the cell will operate under Rera or the revenue department will be made in a meeting chaired by the chief secretary next week.
The creation of this recovery cell arises from the persistent non-compliance by realtors with Rera directives. Sources indicated that, “While homebuyers received favorable orders, builders have been ignoring Rera’s directives. Establishing a recovery cell will enhance compliance.”
According to official data, as of May 31, 2025, a total of ₹724 crore remains unrecovered from over 1,500 builders statewide, with Bengaluru urban accounting for ₹710 crore.
Composition of Recovery Cell
The cell will solely focus on enforcing Rera orders, led by a special deputy commissioner. It will comprise two grade-1 tahsildars, two headmen, and clerical staff, all empowered under Section 40(1) of the Real Estate (Regulation and Development) Act, 2016 and Rule 25 of Karnataka RERA Rules, 2017. The cell will be authorized to treat these dues as arrears of land revenue and take necessary actions against defaulting project promoters, including asset attachment. Rera recommends integrating this cell within the Sakala Mission framework to ensure timely execution.
Homebuyers Praise the Initiative
Homebuyers welcome this initiative as a significant step in safeguarding their rights. M S Shankar, national general secretary of the Forum For People’s Collective Efforts, stated, “While the Rera Act contains robust provisions to protect the real estate sector and homebuyers, it often faces criticism for being a ‘toothless tiger’ due to ineffective recovery of awarded amounts. The establishment of a recovery cell focused on recovering dues is excellent news for homebuyers and could help address ongoing refund issues.”
Dhananjaya Padmanabhachar, convenor of the Karnataka Home Buyers Forum, added, “Once Rera issues orders, the revenue department is responsible for enforcement and ensuring justice for homebuyers. However, the department often lacks timely action. There is an urgent need for dedicated revenue recovery officers within either Rera or the revenue department to guarantee effective recovery measures, including property attachment. Moreover, it is essential to bring the revenue recovery mechanism under the Sakala Mission for timely enforcement.”
