Karnataka RERA to penalize delays in quarterly project reports

Karnataka RERA to fine builders ₹25,000 per quarter from FY 2025–26 for late QPRs; buyers welcome stricter oversight, activists demand tougher penalties

The Karnataka Real Estate Regulatory Authority (K‑RERA) has announced stricter enforcement of quarterly progress report (QPR) submissions, mandating penalties of ₹25,000 per quarter for promoters who fail to comply from the 2025–26 financial year onward. Under the Real Estate (Regulation and Development) Act, 2016, developers are required to upload QPRs on the K‑RERA portal within 15 days of the close of each quarter.

To ease compliance, the authority has granted a final one‑time window for promoters to file pending reports for the first three quarters of 2025–26 without penalty, with the deadline set for February 20, 2026. After this date, recovery proceedings will be initiated against defaulters.

Builder associations have expressed concern, arguing that QPR filings are largely procedural and that penalties should remain nominal and proportionate. They contend that excessive fines could burden developers without addressing core issues in project delivery.

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Homebuyer groups, however, have welcomed the move, viewing it as a mechanism to improve transparency and accountability. Regular reporting, they argue, will allow regulators to track project timelines more effectively and take suo motu action if delays occur.

Some activists have criticised the penalty amount as insufficient, pointing out that the Act permits fines of up to 5% of a project’s cost. They also fault K‑RERA for not issuing a clear project completion policy and for past leniency in enforcing quarterly reporting, despite a similar directive being issued in 2020.

The new enforcement framework is expected to intensify scrutiny of developers and strengthen consumer confidence in Karnataka’s real estate sector.

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