K-RERA Fails to Recover Rs 486 Crore Penalties

27 Mar 2024 CW Team

The Karnataka Real Estate Regulatory Authority (K-RERA) has yet to recover a staggering sum of Rs 4.86 billion in penalties from builders who violated its orders, leaving numerous complaints unresolved. Despite its establishment seven years ago, the authority faces challenges in enforcing penalties, leading to frustrations among homebuyers.

Since its inception, K-RERA has imposed penalties in 1,248 cases, totaling Rs 547.31 crore. However, only a fraction of this amount, Rs 606.4 billion, has been collected from 138 cases. The remaining more than Rs 4.86 billion remains outstanding in 1,110 pending cases, prolonging the ordeal for affected parties.

Many homebuyers express dismay over the slow progress in recovering penalties. "Builders make lofty promises but fail to deliver. When we seek recourse through K-RERA, we're met with delays and inaction," lamented a citizen burdened by loans and unfulfilled promises.

Despite K-RERA's orders issued years ago, little progress has been made in many cases, with builders failing to refund aggrieved buyers. Legal complexities further impede resolution, with builders obtaining stay orders from various courts. For instance, a prominent builder faces a Rs 90 crore repayment obligation, contesting K-RERA's directive in court, prolonging the legal battle.

The Real Estate Regulation and Development (RERA) Act of 2016 aimed to overhaul India's real estate sector, fostering transparency and accountability. However, the challenges faced by K-RERA underscore the persistent hurdles in achieving these objectives.

While K-RERA brought hope to many defrauded homebuyers, its efficacy remains a subject of debate. As India's real estate sector continues to expand, addressing these challenges becomes imperative to safeguard the interests of investors and homeowners alike.

Technology

28 Oct 2025

Building Faster, Smarter, and Greener!

Backed by ULCCS’s century-old legacy, U-Sphere combines technology, modular design and sustainable practices to deliver faster and more efficient projects. In an interaction with CW, Rohit Prabhakar, Director - Business Development, shares how the company’s integrated model of ‘Speed-Build’, ‘Smart-Build’ and ‘Sustain-Build’ is redefining construction efficiency, quality and environmental responsibility in India.U-Sphere positions itself at the intersection of speed, sustainability and smart design. How does this translate into measurable efficiency on the ground?At U..

Smart Roads, Smarter India

India’s infrastructure boom is not only about laying more kilometres of highways – it’s about building them smarter, safer and more sustainably. From drones mapping fragile Himalayan slopes to 3D machine-controlled graders reducing human error, technology is steadily reshaping the way projects are planned and executed. Yet, the journey towards digitisation remains complex, demanding not just capital but also coordination, training and vision.Until recently, engineers largely depended on Survey of India toposheets and traditional survey methods like total stations or DGPS to prepare detai..

What Does DCPR 2034 Mean?

The Maharashtra government has eased approval norms for high-rise buildings under DCPR 2034, enabling the municipal commissioner to sanction projects up to 180 m on large plots. This change is expected to streamline approvals, reduce procedural delays and accelerate redevelopment, drawing reactions from developers, planners and industry experts about its implications for Mumbai’s vertical growth.Under the revised DCPR 2034 rules, buildings on plots of 2,000 sq m or more can now be approved up to 180 m by the municipal commissioner, provided structural and geotechnical reports are certified b..