The Karnataka Real Estate Authority (K-Rera) has commenced an examination of various residential complexes due to their failure to adhere to completion deadlines and their neglect in submitting regular progress reports. A considerable number of real estate projects have not met their deadlines, with over 2,600 officially designated as ‘expired’ and more than 2,700 categorized as ‘lapsed’, according to the latest data from K-Rera.
According to Rera regulations, a real estate project is considered expired when its registration period concludes and the builder has not requested an extension. It is classified as lapsed if the project remains unfinished and no renewal has been granted. In both scenarios, the registration becomes invalid, which may subject the builder to potential penalties and regulatory measures.
Out of 7,707 registered projects, 2,632 builders have failed to fulfill their obligations, with the most prevalent issue being the inability to deliver flats on schedule. The regulations permit developers to request an extension for a year or more; however, none have sought an extension within the designated timeframe. Rera regulations require builders to specify the completion date when entering into agreements with buyers at the outset. They are also obligated to update the project status on the K-Rera portal every three months.
Non-compliance with these regulations can result in a penalty of up to 10% of the project cost, and authorities have the power to seize the promoters’ assets to recover the penalty and compensation owed to buyers. Developers must include all project information in their quarterly updates, detailing the funds collected from buyers and the expenditures on each component. The report should provide a comprehensive overview of the project’s status and outline any outstanding work.
The situation has raised concerns about prolonged construction delays and the potential impact on homebuyers.
Dhananjaya Padmanabhachar, convener of Karnataka Home Buyers’ Forum, said: “If a Rera registration lapses, it is the promoter’s duty to renew it — buyers’ rights remain protected under Rera regardless. Yet, even after eight years, Karnataka Rera has failed to deliver justice or issue clear guidelines for project closures. Shockingly, the authority lacks a project closure policy. While other states have progressed, ours lags behind because of inefficiency and lack of will.
Rera orders often go unenforced because implementation rests with the revenue department, which fails to act. Despite repeated memorandums, Rera passes the buck. The legislation’s intent is solid, but poor execution is hurting homebuyers.”Rajagopalan R, convener of the Bengaluru Coalition group, which fights against illegal constructions, said: “The body has been largely ineffective, recovering barely Rs 100 crore of the Rs 1,000 crore ordered from errant builders.
With poor transparency and a growing backlog of unregistered projects, buyers are turning to consumer forums and high courts for relief. For many, homebuying is a major life event — delays leave families juggling EMIs and rent, while lopsided three-way contracts favour builders and lenders. The only thing keeping buyers from walking away is the sector’s continued bull run.”