{"id":983,"date":"2025-07-01T13:00:00","date_gmt":"2025-07-01T07:30:00","guid":{"rendered":"https:\/\/agentkart.com\/?p=983"},"modified":"2025-07-01T11:30:59","modified_gmt":"2025-07-01T06:00:59","slug":"karnataka-seeks-%e2%82%b9347-crore-in-penalties-from-10-builders","status":"publish","type":"post","link":"https:\/\/www.agentkart.com\/news\/karnataka-seeks-%e2%82%b9347-crore-in-penalties-from-10-builders\/","title":{"rendered":"Karnataka Seeks \u20b9347 Crore in Penalties from 10 Builders"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>BENGALURU, India \u2013 July 1, 2025<\/strong> \u2013 Years after its inception, the Real Estate Regulation and Development Act (RERA) in Karnataka, intended as a beacon of hope for homebuyers, appears to be struggling with its core mandate. Despite obtaining favorable rulings from the Karnataka Real Estate Regulatory Authority (K-RERA), frustrated homeowners find themselves caught in a bureaucratic labyrinth, pursuing what they believe is rightful compensation from developers who are reportedly sidestepping recovery orders.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Recent information obtained through a Right to Information (RTI) request, valid up to May 15, 2025, paints a concerning picture. K-RERA has issued 656 revenue recovery certificates (RRCs) against prominent developers and promoters across 565 separate cases, commanding a total of \u20b9366.20 crore. Yet, the actual funds recouped are strikingly low: a mere \u20b918.70 crore has been collected from just 62 cases. This leaves a staggering \u20b9347.44 crore in penalties outstanding from the remaining 594 unresolved matters.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A particularly stark illustration of this challenge involves only ten major developers, who collectively owe an eye-watering \u20b9347 crore in penalties to homebuyers, with no payments reportedly made to date.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Homebuyer advocates are voicing strong dissatisfaction, suggesting that K-RERA has shown insufficient zeal in pursuing these substantial outstanding sums. Homebuyers frequently lament that the authority seems to be deflecting responsibility by deferring to revenue officers for enforcement.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Under Section 63 of the RERA Act, non-compliance with authority orders should trigger daily penalties on builders, potentially escalating to 5% of the housing project&#8217;s estimated cost. However, K-RERA has been notably unsuccessful in effectively implementing this vital provision.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;Even with court-backed decisions in their favor, many homebuyers are still in the dark regarding the actual mechanisms for enforcement,&#8221; commented one activist. &#8220;If the RERA authorities themselves lack the power or will to enforce their own directives, forcing buyers into civil courts is simply not a practical recourse for the average person.&#8221; This ongoing predicament highlights a significant chasm between the regulatory framework&#8217;s intent and its practical application, leaving thousands of homebuyers in a protracted and stressful legal holding pattern.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>BENGALURU, India \u2013 July 1, 2025 \u2013 Years after its inception, the Real Estate Regulation and Development Act (RERA) in Karnataka, intended as a beacon of hope for homebuyers, appears to be struggling with its core mandate. Despite obtaining favorable rulings from the Karnataka Real Estate Regulatory Authority (K-RERA), frustrated homeowners find themselves caught in [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":984,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[32],"tags":[922,1399,2739,995,937,580,600,911,574,2740,553,2741,2732,1436,1303,2742,2734,2733,579,1002,559,622,614,2738,576,2736,2737,2744,2735,2743,1590],"class_list":["post-983","post","type-post","status-publish","format-standard","has-post-thumbnail","category-karnataka","tag-accountability","tag-agentkart","tag-builder-defaults","tag-builders","tag-consumer-protection","tag-consumer-rights","tag-developers","tag-enforcement","tag-homebuyers","tag-housing-crisis","tag-india","tag-judicial-system","tag-k-rera","tag-karnataka","tag-karnataka-rera","tag-legal-challenges","tag-legal-limbo","tag-penalties","tag-property-disputes","tag-property-fraud","tag-real-estate","tag-real-estate-market","tag-real-estate-regulation","tag-regulatory-failure","tag-rera-act","tag-revenue-recovery-certificates","tag-rrcs","tag-rti","tag-section-63","tag-unfulfilled-promises","tag-unpaid-dues"],"_links":{"self":[{"href":"https:\/\/www.agentkart.com\/news\/wp-json\/wp\/v2\/posts\/983","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.agentkart.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.agentkart.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.agentkart.com\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.agentkart.com\/news\/wp-json\/wp\/v2\/comments?post=983"}],"version-history":[{"count":0,"href":"https:\/\/www.agentkart.com\/news\/wp-json\/wp\/v2\/posts\/983\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.agentkart.com\/news\/wp-json\/wp\/v2\/media\/984"}],"wp:attachment":[{"href":"https:\/\/www.agentkart.com\/news\/wp-json\/wp\/v2\/media?parent=983"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.agentkart.com\/news\/wp-json\/wp\/v2\/categories?post=983"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.agentkart.com\/news\/wp-json\/wp\/v2\/tags?post=983"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}