Bengaluru: K-RERA struggles to recover fines from rule-breaking builders

The Karnataka Real Estate Regulatory Authority (K-RERA) faces significant challenges in recovering penalties imposed on builders violating real estate norms. Data from K-RERA reveals that recovery orders have been issued in 1,539 cases, totaling ₹707 crore in fines. However, only ₹79 crore—just 12%—has been recovered, leaving ₹627 crore outstanding.

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Under RERA rules, the responsibility for enforcing Revenue Recovery Certificates (RRCs) falls to District Collectors and Tahsildars. However, their existing workload and administrative delays have slowed progress. Frustrated homebuyers have increasingly turned to district offices for relief, but builders often disregard K-RERA’s directives.

Despite a mandate requiring developers to comply with RERA orders within 60 days, enforcement remains ineffective. Organizations like the Federation of Apartment Owners (FPCE) and the Karnataka Home Buyers Forum have petitioned the state government, demanding K-RERA be granted enforcement powers.

Homebuyers advocate for a dedicated revenue officer within K-RERA, authorized to seize properties and issue arrest warrants for defaulters. This proposal, initially submitted by former K-RERA secretary K.S. Lathakumari three years ago, called for an enforcement department to address delays. However, the government has yet to act on it, despite frequent discussions.

Only if K-RERA gains direct recovery powers will homebuyers receive justice. The pressing issue underscores the urgent need for a streamlined enforcement mechanism to uphold the RERA Act effectively.