Over 5,000 realty projects delayed, leaving thousands in limbo
Real Estate

Over 5,000 realty projects delayed, leaving thousands in limbo

Thousands of homebuyers who invested in Karnataka’s property market are currently experiencing indefinite delays, as more than 5,000 residential projects remain stuck at various stages of non-completion.

Official data reveals that over 2,600 projects have missed their deadlines and failed to obtain valid extensions, while more than 2,700 have been classified as lapsed or expired. This situation has prevented a significant number of buyers from taking possession of their homes, despite years of waiting and ongoing financial obligations.

The problem is widespread, with Bengaluru alone accounting for over 1,300 stalled projects. Buyers have reported receiving no updates on construction progress, and some builders’ websites and official communication channels have gone completely silent.

The delays in possession have compelled many homebuyers to continue paying both EMIs and rent. Others are grappling with uncertainty due to legal disputes, incomplete documentation, or projects being declared invalid for non-compliance.

The reasons for the stalled projects are tied to regulatory classifications: projects are deemed expired when developers fail to apply for renewal after the registration period ends, and are marked as lapsed when projects remain incomplete without approved extensions. In both instances, these projects lose their valid registration under regulatory rules, which exposes builders to penalties and potential legal action.

In Karnataka, out of 7,707 registered real estate projects, 2,632 builders have defaulted on their timelines. Although there is a provision to apply for a one-year extension, many developers failed to do so within the prescribed period.

The Real Estate (Regulation and Development) Act requires developers to upload quarterly project progress reports that detail construction updates, fund usage, and timelines. However, in many stalled projects, these mandatory disclosures have ceased entirely, leaving buyers without any information about the status of their investments.

The Karnataka Real Estate Regulatory Authority (KRERA), responsible for overseeing the sector, has penalised multiple projects for delays and non-compliance, but enforcement has been slow. Despite orders worth hundreds of crores against defaulting builders, only a small portion has been recovered. For affected homebuyers, the future remains uncertain, and the wait for possession of their promised homes continues indefinitely.

News source: Odisha TV

Thousands of homebuyers who invested in Karnataka’s property market are currently experiencing indefinite delays, as more than 5,000 residential projects remain stuck at various stages of non-completion.Official data reveals that over 2,600 projects have missed their deadlines and failed to obtain valid extensions, while more than 2,700 have been classified as lapsed or expired. This situation has prevented a significant number of buyers from taking possession of their homes, despite years of waiting and ongoing financial obligations.The problem is widespread, with Bengaluru alone accounting for over 1,300 stalled projects. Buyers have reported receiving no updates on construction progress, and some builders’ websites and official communication channels have gone completely silent.The delays in possession have compelled many homebuyers to continue paying both EMIs and rent. Others are grappling with uncertainty due to legal disputes, incomplete documentation, or projects being declared invalid for non-compliance.The reasons for the stalled projects are tied to regulatory classifications: projects are deemed expired when developers fail to apply for renewal after the registration period ends, and are marked as lapsed when projects remain incomplete without approved extensions. In both instances, these projects lose their valid registration under regulatory rules, which exposes builders to penalties and potential legal action.In Karnataka, out of 7,707 registered real estate projects, 2,632 builders have defaulted on their timelines. Although there is a provision to apply for a one-year extension, many developers failed to do so within the prescribed period.The Real Estate (Regulation and Development) Act requires developers to upload quarterly project progress reports that detail construction updates, fund usage, and timelines. However, in many stalled projects, these mandatory disclosures have ceased entirely, leaving buyers without any information about the status of their investments.The Karnataka Real Estate Regulatory Authority (KRERA), responsible for overseeing the sector, has penalised multiple projects for delays and non-compliance, but enforcement has been slow. Despite orders worth hundreds of crores against defaulting builders, only a small portion has been recovered. For affected homebuyers, the future remains uncertain, and the wait for possession of their promised homes continues indefinitely.News source: Odisha TV

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