'Delays Shatter Homebuyers' Dreams': Karnataka RERA Orders BDA To Pay ₹56 Lakh For Delay In Providing Amenities
Warning that delays by developers can shatter homebuyers' lifelong investment-backed aspirations, the Karnataka Real Estate Regulatory Authority has directed the Bangalore Development Authority (BDA) to pay Rs 56.03 lakh as interest compensation to a homebuyer for delay in providing basic amenities in the Nadaprabhu Kempegowda Layout (NPKL) project in Bengaluru.
Holding that mere execution of a sale deed or handing over possession without basic infrastructure does not amount to a valid handover, a coram of Chairman Rakesh Singh and Member G.R. Reddy observed, “To have a cosy house is everyone's dream. To fulfil that dream, one could take the risk of investing all lifetime savings and raising loans in terms of lakhs or crores, which could take the rest of life to repay. That being so, (if) the developer resorts to using the hard-earned money of investors in a reckless manner, it would not only shatter the dreams of investors, but also make them run from pillar to post by incurring heavy investment as well as legal expenses. Though the complainant had paid the entire sale consideration of the site to the respondent in the year 2020 itself, she is deprived of use and enjoyment of her site."
The Authority further held, “Mere handover of possession of property to the allottee is of no use without providing basic facilities such as water and electricity connections, drainage, road and street lights etc. Without these facilities one cannot use and enjoy his property.”
Mridula Krishnapur, a resident of Jayanagar, had purchased a site in Sector-B of the layout. The site was allotted on October 11, 2018 and the full consideration of Rs 96,87,510 was paid by February 5, 2019.
A lease-cum-sale deed was executed on June 10, 2020 and a possession certificate was issued on June 16, 2020. The Authority found that the site lacked essential infrastructure including water supply, sewage, electricity, roads, street lighting and parks.
Allowing her complaint under Section 31 of the Real Estate (Regulation and Development) Act, 2016, the Authority held BDA liable under Section 18, observing that possession without completion of basic amenities does not amount to compliance with statutory obligations.
While the complainant had claimed Rs 68,77,797, the Authority awarded Rs 56,03,736 as interest for the period from June 10, 2020 to February 2, 2026, directing payment within 60 days and further interest thereafter until completion of amenities.
In other complaints relating to the same project, the Authority granted similar relief, directing BDA to pay Rs 8,49,737 and Rs 22,46,177 respectively as delay interest and to complete pending infrastructure works.
It reiterated that execution of sale deeds or issuance of possession certificates does not discharge the promoter's obligations unless the project is completed in all respects and made practically usable.
In a separate batch of complaints, however, the Authority declined to grant relief in the absence of agreements to sale, payment records and clear timelines.
These rulings come in the backdrop of a recent order dated March 3, 2026 by the Karnataka Real Estate Appellate Tribunal declaring the Bangalore Development Authority (BDA) to be a 'promoter' under the Real Estate (Regulation and Development) Act, 2016.
For Complainant: Mridula Krishnapur, In person
For Respondent: Advocate Shri B. Vachan