3,145 Karnataka Housing Projects Stalled, Leaving Buyers in Limbo
Real Estate

3,145 Karnataka Housing Projects Stalled, Leaving Buyers in Limbo

Homebuyers across 3,145 housing projects in Karnataka are waiting for possession after developers failed to complete the projects within their approved deadlines, according to data from the Karnataka Real Estate Regulatory Authority (K-RERA). The stalled developments have left thousands of buyers without homes despite having booked properties.

Since K-RERA began operating in 2017, 10,621 housing projects have been registered with the authority. Nearly 30 per cent of these projects have remained incomplete for years, highlighting persistent delays in construction and delivery across the state’s residential market.

The list of lapsed projects accessed by the publication includes developments promoted or managed by the Karnataka Slum Development Board, the Bangalore Development Authority and town and city municipal corporations. Their inclusion indicates that delays extend beyond private developers and also affect projects associated with public agencies.

The Forum for People’s Collective Efforts (FPCE), previously known as Fight for RERA, said the situation in Karnataka was serious because authorities had not adequately analysed builders’ quarterly progress reports or carried out inspections to ensure timely completion. The organisation said this lack of monitoring had contributed to 3,145 projects being listed as lapsed on the K-RERA portal.

FPCE data also showed that K-RERA had issued recovery certificates worth Rs. 12.53 bn as compensation to homebuyers. However, only Rs. 1.29 bn had been recovered so far, leaving a substantial gap between amounts awarded and funds returned to affected buyers.

The recovery figures underline the difficulties faced by buyers even after obtaining regulatory relief. While recovery certificates recognise compensation claims, the limited amount collected means many purchasers remain exposed to prolonged financial pressure and uncertainty over possession or repayment.

Homebuyers across 3,145 housing projects in Karnataka are waiting for possession after developers failed to complete the projects within their approved deadlines, according to data from the Karnataka Real Estate Regulatory Authority (K-RERA). The stalled developments have left thousands of buyers without homes despite having booked properties. Since K-RERA began operating in 2017, 10,621 housing projects have been registered with the authority. Nearly 30 per cent of these projects have remained incomplete for years, highlighting persistent delays in construction and delivery across the state’s residential market. The list of lapsed projects accessed by the publication includes developments promoted or managed by the Karnataka Slum Development Board, the Bangalore Development Authority and town and city municipal corporations. Their inclusion indicates that delays extend beyond private developers and also affect projects associated with public agencies. The Forum for People’s Collective Efforts (FPCE), previously known as Fight for RERA, said the situation in Karnataka was serious because authorities had not adequately analysed builders’ quarterly progress reports or carried out inspections to ensure timely completion. The organisation said this lack of monitoring had contributed to 3,145 projects being listed as lapsed on the K-RERA portal. FPCE data also showed that K-RERA had issued recovery certificates worth Rs. 12.53 bn as compensation to homebuyers. However, only Rs. 1.29 bn had been recovered so far, leaving a substantial gap between amounts awarded and funds returned to affected buyers. The recovery figures underline the difficulties faced by buyers even after obtaining regulatory relief. While recovery certificates recognise compensation claims, the limited amount collected means many purchasers remain exposed to prolonged financial pressure and uncertainty over possession or repayment.

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