Karnataka RERA directs Bengaluru development body to register delayed layout

Karnataka RERA ordered BDA to register the delayed NPKL layout, calling it a promoter under RERA, offering relief to 10,000 long-waiting allottees

In a landmark ruling, the Karnataka Real Estate Regulatory Authority (K-RERA) has directed the Bangalore Development Authority (BDA) to register the long-delayed Nadaprabhu Kempegowda Layout (NPKL) under the Real Estate (Regulation and Development) Act, 2016. The order, issued on November 7, mandates BDA to complete registration within two weeks and respond within three weeks on why penalty proceedings should not be initiated for selling plots without RERA approval.

This decision follows a series of complaints from allottees who have waited nearly a decade for possession. Complainants alleged that despite full payments made years ago, BDA failed to provide basic infrastructure such as roads, water supply, sewerage, drainage, and electricity, rendering the layout uninhabitable. They also accused BDA of collecting more than the legally permissible 10% advance and demanding full site value before completing development or registration. Additionally, the authority reportedly did not maintain an escrow account for collected funds, a key RERA requirement to prevent misuse of project money.

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BDA had argued that it is a statutory body governed by the BDA Act, 1976, and not a commercial real estate developer. It claimed that its activities fall under urban planning and welfare, not profit-driven real estate, and that RERA provisions should not apply to government-run schemes. The authority also cited procedural delays due to land acquisition and litigation, and defended the use of funds across various public infrastructure projects.

However, the RERA bench, led by chairman Rakesh Singh and member Ravindranadha Reddy, rejected these arguments. It ruled that any public body engaged in developing and selling plots is a promoter under the Act, regardless of profit motive. The bench emphasized that BDA’s operations closely resemble those of private developers and must adhere to the same standards of transparency and accountability. The ruling cited a 2019 clarification from the Ministry of Housing and Urban Affairs, which confirmed that even the Delhi Development Authority falls under RERA’s purview.

The decision has been welcomed by thousands of affected homebuyers, who now hope for timely redressal and compensation for prolonged delays.