K-RERA intensifies crackdown on unregistered real estate projects

K-RERA cracks down on unregistered projects in Karnataka; 765 complaints since 2021. Buyers welcome action but warn of loopholes and low awareness

The Karnataka Real Estate Regulatory Authority (K-RERA) has stepped up enforcement against unregistered property developments across the state, tightening scrutiny on promoters and exposing gaps in compliance. The regulator is verifying project status, issuing notices, and initiating action against developers found operating without mandatory registration, with the stated aim of protecting homebuyers.

Since 2021, K-RERA has received 765 complaints linked to unregistered projects. Orders have been passed in 440 cases, while 325 matters remain under hearing or processing. Officials note that many complaints involve projects that either do not exist or are already registered, prompting the authority to adopt a verification-first approach before penal measures.

Under the Real Estate (Regulation and Development) Act, registration is compulsory for projects exceeding eight units or those built on plots larger than 500 square metres. However, several developments continue to bypass the law. Independent planning approvals and occupancy certificates issued by civic bodies, coupled with the absence of a mandatory RERA check during property registration, allow some promoters to evade compliance.

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Officials acknowledge that weak integration between RERA and other approval processes enables developers to secure sanctions and register sale deeds without quoting a RERA number. Once registered, projects provide buyers with verified details on approvals, timelines, and finances, while also granting them recourse to the regulator in cases of fraud. Stronger linkage, they argue, is essential to safeguard consumers.

Homebuyer groups have welcomed the crackdown but raised concerns over low awareness and recurring misuse of loopholes. Representatives from citizen coalitions in Bengaluru allege that some promoters whose projects were cancelled are re-entering the market under new company names. They stress the need for tighter scrutiny, proactive government oversight, and greater buyer education to ensure genuine protection in the housing sector.

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