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The Karnataka Real Estate Regulatory Authority (RERA) has initiated regulatory action involving 155 promoters who failed to file mandatory quarterly project progress updates on the authority's official portal, signalling a tougher stance on compliance under the Real Estate (Regulation and Development) Act, 2016. Promoters across the state including a significant number based in the Bengaluru real estate market have not uploaded required reports for registered projects, prompting notices from RERA with penalties of up to 5 per cent of a project's estimated cost and fines of INR 25,000 for every missed quarter under the current framework. The authority has set a deadline of the end of the current financial year for promoters to remedy outstanding filings without additional action, after which recovery proceedings will begin. The move is part of broader efforts by RERA to enhance builder accountability, transparency for homebuyers and regulatory adherence.
Under the RERA regime, promoters of registered real estate projects are obliged to submit quarterly progress updates through the Karnataka RERA portal, reflecting construction status, financial deployment and other regulatory disclosures within specified timelines. Failure to do so undermines transparency of project execution for homebuyers and regulatory oversight, prompting RERA to issue enforcement directives. Advertisement
RERA's action targets 155 builders and promoters in Karnataka who have not filed many of these mandatory quarterly reports despite repeated notices, leaving their projects with outdated or missing status information on the authority's public portal. Officials noted that inaction on updates not only contravenes statutory obligations but also diminishes confidence among existing and prospective buyers relying on authoritative project data.
Under the compliance mechanism, promoters face fines of INR 25,000 per quarter for each overdue quarterly update. In addition, RERA may impose a penalty of up to 5 per cent of the total estimated cost of the project for prolonged non-submission or willful neglect, reflecting the regulator's power to enforce compliance under the RERA Act.
Promoters have been given until the end of the current financial year to submit all pending information on project progress without facing full enforcement action. After this deadline, RERA has indicated that recovery and penal proceedings will be initiated, including potential invocation of statutory provisions to enforce compliance and protect homebuyer interests.
The authority's move aligns with broader regulatory priorities to enhance transparency in the real estate sector and ensure builders adhere to reporting requirements intended to safeguard buyer interests, even as many registered projects across the state continue to vie for improved enforcement outcomes.
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