Karnataka RERA Orders BDA To Refund ₹11.46 Lakh Collected Despite Full Payment Before Cut-Off Date

The Karnataka Real Estate Regulatory Authority has directed the Bangalore Development Authority to refund Rs.11.46 lakh collected from a homebuyer, holding that the amount could not have been demanded once the entire sale consideration had already been paid before the government's cut-off date.

“When the complainant had deposited an entire sale consideration on 28.10.2021 itself much prior to cut-off date 30.11.2021, the respondent could not have demanded/insisted the complainant to pay the said amount of Rs.11,46,267/- (Eleven Lakh Forty Six Thousand Two Hundred and Sixty Seven only). Hence, the complainant is entitled to get refund of said amount along with interest.”

The order was passed by Chairman Rakesh Singh and Member G.R. Reddy.

NR Bhadrachalam was allotted a site in October 2018 in the 7th Block of Sector-J in the Nadaprabhu Kempegowda Layout. A lease cum sale deed was executed on May 31, 2023 for Rs.96,87,510.

The authority noted that the complainant had already deposited the entire sale consideration by October 28, 2021, an amount recorded in parts of the proceedings as Rs. 96,90,009. This was well before the November 30, 2021 cut-off date.

Even so, the Bangalore Development Authority went on to demand and collect an additional Rs. 11,46,267. The complainant said he paid this amount under pressure, fearing that failure to comply could lead to cancellation of the allotment.

When his request for a refund did not yield any result, he moved the authority under Section 31 of the Real Estate (Regulation and Development) Act, 2016. His case was straightforward: once the full consideration had been paid before the notified cut-off, no further amount could be demanded under the government order.

In response, the Bangalore Development Authority referred to a writ petition filed by the complainant on the same issue. The authority, however, noted that the petition had already been withdrawn on September 23, 2025. It also recorded that no supporting documents were produced by the respondent to substantiate its position.

On examining the material placed before it, the authority found no dispute on a key fact. The entire sale consideration had been paid in October 2021.

It held that the subsequent demand for additional payment was unjustified.

Accordingly, the authority directed the Bangalore Development Authority to refund Rs 11,46,267 along with interest at MCLR+2% from March 8,2023 till realisation. It also directed the authority to pay interest on Rs 96.87 lakh for the delay period from May 31, 2023, the date of the sale deed, until completion of all basic amenities in the layout.

The complaint was allowed with no order as to costs.

For Petitioner (N R Bhadrachalam): In person.

For Respondent (Bangalore Development Authority): Advocates Ajay Kumar.