The Karnataka Real Estate Regulatory Authority (K-Rera) has resolved to impose a penalty of Rs 25,000 for each quarter on promoters who have either delayed or failed to submit their quarterly progress reports (QPRs) for the financial year 2025-26, as required by the Real Estate (Regulation and Development) Act, 2016.
In a circular released on Tuesday, the authority emphasized that promoters must upload quarterly updates regarding their registered real estate projects onto the K-Rera web portal within 15 days following the conclusion of each quarter.
Citing the powers granted to it under the Act, K-Rera stated that it is empowered to issue directives and impose penalties for any violations of obligations by promoters. Nevertheless, K-Rera has provided a final one-time opportunity for promoters to submit their Q1, Q2, and Q3 reports without incurring penalties, with a deadline set for February 20, 2026. The authority indicated that it will commence recovery actions from February 20 for any delayed or non-submissions, and the circular will take effect from January 20.
In the meantime, builders have expressed that quarterly filings are primarily procedural and technical in nature, and while they find penalties to be acceptable, they argue that such penalties should be minimal and proportionate. Conversely, home buyers have welcomed this initiative, asserting that it can assist in holding builders accountable. Srinivasa Rao Talla, secretary of the Bangalore City Flats Owners Welfare Association (BCFOWA), remarked: “This enables both the authority and homebuyers to stay informed about the project’s progress. Authorities can take suo motu action if the progress does not meet the established timelines.”
Dhananjaya Padmanabhachar, the convenor of the Karnataka Home Buyers Forum, expressed that the penalty set by the authority is insufficient. “The Rera Act grants the authority the power to impose a penalty of up to 5% of the project’s total cost. A higher penalty would ensure that promoters adhere to Rera regulations. It is quite surprising that the authority has yet to publish the project completion policy, which would enable promoters to fulfill project closure requirements under Rera.
When the Rera authority itself is at fault, who will hold them accountable with a penalty?” MS Shankar, the general secretary of the Forum for People’s Collective Efforts, remarked: “In our letter from 2024, we highlighted that K-Rera continues to be lenient regarding violations that necessitate quarterly project updates. Despite a similar circular issued in 2020, there has been no proper mapping of projects, which raises concerns about K-Rera’s commitment to enforcing the current directive.
