BENGALURU: In a victory to homebuyers, the Karnataka Real Estate Regulatory Authority (K-RERA) has ordered the Bangalore Development Authority (BDA) to pay Rs 56.03 lakh and Rs 15.50 lakh in two individual cases as delayed penalties, with BDA being held liable as a “promoter” under RERA.
The orders, passed by a full bench headed by chairman Rakesh Singh and member GR Reddy on April 8, covers major BDA projects at Gunjur (Phases 1 and 2) and the Nadaprabhu Kempegowda Layout (NPKL) for prolonged delays in completion. The authority directed immediate completion of stalled works, issuance of Occupancy Certificates (OC) and payment of interest for delays extending over a decade. In the NPKL case, the order directed that the complainant be paid Rs 56.03 lakh within 60 days of the order date. In the Gunjur case, the complainant should be paid Rs 15.50 lakh with interest rate calculated at 9% from September 9, 2014, till April 30, 2017.
Speaking to TNIE, Advocate Rajeev K Jha, who represented aggrieved homebuyers, said, “Any allottee is entitled to delayed penalties if they approach the authority, where the compensation would amount to an average of Rs 35 lakh, totalling to Rs 1,000-1,500 crore for the 5,000 allottees of NPKL project.” He added that the penalties for the Gunjur project allottees at present would amount to Rs 300 to Rs 400 crore if homebuyers approach K-RERA.
In a key legal finding, K-RERA clarified that statutory bodies like BDA are not exempt from RERA provisions. Referring to the Act, it held that any public authority engaged in developing land or constructing buildings for sale qualifies as a “promoter”. It also stated that RERA provisions override conflicting clauses in the BDA Act, 1976.
The Gunjur BDA flats project, allotted in 2013 with a promised one-year completion timeline, remains incomplete even in 2026. The authority noted serious lapses despite substantial payments from allottees, including lack of permanent electricity, absence of fire safety clearances, nonfunctional infrastructure such as lifts and visible structural issues.
K-RERA ordered the BDA to pay interest on the delay period from the date of initial payment, complete all promised amenities and secure Occupancy Certificates, stressing that execution of sale deeds alone does not fulfil legal obligations.
Similar concerns were raised in complaints related to NPKL, where the authority allowed affected allottees to file fresh petitions with complete documentation, reinforcing their right to seek relief.
Advocate Jha said, “This order is a landmark because it clearly establishes that even statutory authorities like the BDA are not above RERA. Homebuyers are no longer helpless, RERA ensures accountability even against government bodies.”