Over 2,600 Real Estate Projects Expire in Karnataka; Many More Declared Lapsed: K-RERA Data

BENGALURU: The Karnataka Real Estate Regulatory Authority (K-RERA) has begun investigating several residential developments that have failed to meet their construction deadlines and have not submitted required progress updates.

According to the latest data from K-RERA, a large number of real estate projects have missed their delivery timelines, with more than 2,600 officially marked as “expired” and over 2,700 categorized as “lapsed.”

As per RERA guidelines, a project is deemed “expired” when its registration period concludes without the developer applying for an extension. On the other hand, a project is labeled “lapsed” if it remains incomplete and no extension or renewal has been granted. In both scenarios, the registration becomes void, exposing developers to penalties and potential regulatory enforcement.

Out of a total of 7,707 registered real estate projects in Karnataka, 2,632 developers have defaulted, primarily due to delays in delivering completed flats. The RERA framework allows for an extension of the registration by about a year, but none of the developers in question applied for extensions within the prescribed period.

The regulations stipulate that builders must declare a firm completion date at the time of signing agreements with homebuyers. They are also required to upload quarterly updates on the project’s progress to the K-RERA portal.

Failure to comply can lead to fines amounting to as much as 10% of the project’s overall cost. Furthermore, the authority has the power to attach the promoter’s assets to recover penalties and compensate affected homebuyers.

Each quarterly update is supposed to include detailed disclosures such as the amount of money collected from buyers and how those funds have been allocated across different aspects of the project. These reports are intended to provide a transparent picture of the construction status and outline the work that remains pending.

Implications for Homebuyers

The ongoing issue has sparked serious concerns about long construction delays and their cascading impact on prospective homeowners.

Dhananjaya Padmanabhachar, convener of the Karnataka Home Buyers’ Forum, commented, “If a RERA registration lapses, it is the promoter’s responsibility to ensure it is renewed.

Buyers’ rights are safeguarded under RERA regardless of the project status. However, even after eight years, Karnataka RERA has not managed to implement justice effectively or establish a structured policy for project closures. Shockingly, the state still lacks a formal project closure policy.”

He added, “Other states have made progress, but Karnataka remains stuck due to inefficiency and lack of commitment. While RERA’s legislative intent is commendable, its poor implementation continues to harm homebuyers.

Orders issued by RERA are rarely enforced, mainly because the responsibility for implementation lies with the revenue department, which fails to act. Despite repeated representations and memorandums, the authority continues to pass the responsibility.”

Rajagopalan R, convener of the Bengaluru Coalition group that advocates against unauthorized constructions, voiced similar frustrations.

“The authority has proven largely ineffective — it has recovered barely ₹100 crore out of the ₹1,000 crore directed to be paid by defaulting builders. Transparency is lacking, and a mounting backlog of unregistered projects only worsens the situation.”

He further explained, “More and more buyers are being forced to approach consumer courts and high courts in search of justice. For most people, purchasing a home is a life-defining decision.

Delays result in dual financial burdens — homebuyers have to manage both EMIs and rent. Adding to the problem are skewed tripartite agreements that heavily favor builders and lenders. The only reason buyers haven’t completely lost hope is the continued bullish sentiment in the real estate market.”