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The Karnataka Real Estate Regulatory Authority (K-RERA) has intensified enforcement actions against unregistered residential real estate projects in the state, issuing repeated notices and opening inquiries amid a surge in complaints from homebuyers. Since 2021, the authority has received 765 complaints related to projects that should have been registered under the Real Estate (Regulation and Development) Act, 2016 but were not, resolving 440 cases and progressing 325 others through hearings. A key challenge identified by the regulator is the existence of structural and procedural loopholes that allow promoters to bypass mandatory RERA registration, including planning authorities granting sanctions and occupancy certificates without requiring a RERA number, and property registrations proceeding without RERA verification. Authorities and homebuyer groups have said these gaps undermine regulatory protections and pose heightened risks of fraud for buyers. K-RERA has called for stronger enforcement and greater awareness to close loopholes in the system.
The Karnataka Real Estate Regulatory Authority (K-RERA) has broadened its enforcement drive against the launch and sale of unregistered real estate projects in Karnataka, revealing persistent challenges in enforcing mandatory registration requirements and closing regulatory loopholes that enable non-compliance, officials said. Advertisement
Under the Real Estate (Regulation and Development) Act, 2016, all residential and commercial projects in excess of eight units or 500 square metres of land are required to secure mandatory registration with K-RERA before any launch, sale or marketing can occur. Registration ensures disclosure of key project details including layouts, approvals and financial standing and grants homebuyers statutory protections including grievance redressal and financial safeguards.
Since 2021, K-RERA has received 765 complaints alleging promoters have marketed or progressed projects without securing registration, regulatory data shows. Of these, K-RERA has passed orders in around 440 cases, while 325 matters remain in various stages of verification and adjudication. The authority has repeatedly issued notices to promoters to verify project status, a process sometimes requiring multiple rounds of correspondence to clarify facts on the ground and in official records.
A senior K-RERA official said a significant proportion of the complaints stem from mistaken identification or confusion over whether a project was actually launched and registered, underscoring the need for better buyer education on RERA requirements and verification processes. However, the situation has also highlighted structural gaps in the regulatory framework that promoters have exploited to avoid registration.
Officials identified that planning and sanctioning authorities can grant building approvals and even occupancy certificates without demanding proof of RERA registration, enabling developers to proceed with construction or sales absent statutory oversight. Additionally, property registration systems including those used by urban development departments and stamp authorities do not currently mandate the presence of a RERA registration number when registering property transactions, further weakening enforcement channels.
K-RERA emphasised that unregistered projects remain unregulated and risky for homebuyers, as they do not come with the transparency and accountability mechanisms provided under the Act, such as escrow-account fund protection, periodic progress reporting and dispute settlement forums. Authorities said the ongoing drive is aimed at both filtering out genuine registration lapses and targeting deliberate non-compliance, with confirmed unregistered developments referred to competent adjudication bodies for further action.
Homebuyer associations in Karnataka have urged K-RERA and state authorities to strengthen enforcement and awareness campaigns, saying low awareness among buyers about the need to check RERA registration before booking leaves many vulnerable to project delays, legal disputes and potential loss of funds. Some groups have also called for regulatory reforms to integrate registration checks more tightly into planning, approval and property registration processes to safeguard consumer interests more effectively.
The crackdown reflects rising regulatory vigilance in Karnataka's property market, even as the industry grapples with other challenges including stalled E-Khata digital processes and project delays that continue to affect transactions and enforcement across the state.
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