The Karnataka Real Estate Regulatory Authority (K-Rera) has heightened its examination of unregistered developments, concentrating on detecting violations, confirming project statuses, and taking action against non-compliant promoters to protect homebuyers.
Notices were dispatched to ascertain project statuses and registrations, as some were subsequently discovered to be registered. According to the authority’s data, 765 complaints have been lodged across Karnataka since 2021 concerning unregistered projects. Orders have been issued in 440 cases, while 325 cases remain at various stages of hearing and processing.
Officials indicated that a significant portion of complaints pertained to projects that might not even exist or were already registered, necessitating a verification-first strategy. In numerous cases, notices were sent up to three times to prompt responses from promoters and clarify the facts. Under the Rera Act, any residential project comprising more than eight units or a land area exceeding 500 sqm is required to be registered with the authority.
One of the primary challenges, according to Rera officials, is that some complaints stem from erroneous uploads on the portal or confusion among buyers regarding whether a builder is actively executing a project. Consequently, the ongoing initiative aims to filter out genuine violations as much as it focuses on enforcement. Once a project is verified as unregistered despite meeting Rera criteria, the issue is referred to the competent authority for hearings and orders against the promoter.
However, officials highlighted structural gaps that enable some promoters to evade registration. In certain instances, planning authorities issue project approvals and even occupancy certificates independently of RERA. Furthermore, Rera registration is not a mandatory requirement during property registration with other planning authorities, such as the urban development department or the stamps department.
A senior official from Rera explained the rationale behind the lack of registration, stating: “Since registration is not closely tied to other approvals, some promoters tend to bypass it. Planning authorities are able to issue sanctions and occupancy certificates independently, and property registration does not require a Rera number.
Therefore, unless other regulations mandate it, some builders attempt to proceed without registering. When projects are registered, buyers receive verified information regarding approvals, timelines, and finances. In instances of fraud, they have the option to file a complaint and seek recourse.” Unregistered projects are those initiated without the necessary Rera registration or disclosures concerning approvals.
These projects are deemed risky as they evade regulatory oversight, increasing the likelihood of fraud and safety issues. K-Rera indicated that the initiative was designed to protect homebuyers. Homebuyer associations pointed out that the greater challenge lies in the low level of awareness among buyers, highlighting that many purchasers still neglect to verify Rera registration details and predominantly depend on builders’ assurances, which leaves them susceptible to delays and legal conflicts.
Dhananjaya Padmanabhachar, convenor of the Karnataka Home Buyers Forum, remarked: “It is Rera’s duty to guarantee that every eligible project is registered under Rera without exception. This will ensure the protection of home buyers. We have observed several promoters whose projects were cancelled re-registering as new projects under different promoter company names. The authority must utilize the data available in their records to scrutinize the promoters and ensure the protection of home buyers’ rights.” R Rajagopalan, convenor of the Bengaluru Coalition, stated: “The fundamental issue resides in the manner in which approvals are granted.
While court perspectives are one aspect, the more significant concern is buyer awareness — many buyers continue to be misled by unregistered projects based on builders’ assertions. What is required is proactive safeguarding of citizens’ rights by the government and statutory bodies. Most violations occur in ambiguous areas such as unit count or square footage, where loopholes are exploited, and the critical question is how authorities will address this.
