Advertisement
In this episode of Prop Personalities, we sit down with Hars...
Luxury real estate is one of the most talked-about segments ...
Welcome to Prop Personalities by Prop News Time - a podcast ...
Airports play a much bigger role than just enabling travel -...
Why does the same hotel brand operate multiple properties in...
The Karnataka Real Estate Regulatory Authority (K-RERA) has directed the Bangalore Development Authority (BDA) to pay approximately INR 56 lakh as interest compensation to a homebuyer for delays in providing basic amenities at the Nadaprabhu Kempegowda Layout in Bengaluru. The order follows a complaint where the allottee had received possession without essential infrastructure such as roads, water and electricity. K-RERA held that BDA qualifies as a promoter under the RERA framework and is liable for deficiencies in service. The ruling reinforces accountability of public authorities in real estate projects and underscores that possession without infrastructure does not meet statutory obligations.
The Karnataka Real Estate Regulatory Authority (K-RERA) has directed the Bangalore Development Authority (BDA) to pay around INR 56 lakh as interest compensation to a homebuyer for delays in providing basic infrastructure at the Nadaprabhu Kempegowda Layout (NPKL) in Bengaluru. Advertisement
The order, passed earlier this month, relates to a complaint filed by an allottee who had purchased a residential site in the layout and received possession in 2020 without the provision of essential civic amenities. The authority found that despite full payment having been made earlier, the site lacked critical infrastructure including roads, water supply, sewerage, electricity and street lighting, rendering it unfit for use.
K-RERA observed that handing over possession without basic amenities does not fulfil the obligations of a developer under the Real Estate (Regulation and Development) Act. It ruled that the allottee was effectively unable to utilise the property despite ownership being transferred, and therefore entitled to compensation for the delay period.
The regulator calculated the compensation for the period between June 2020 and early 2026, awarding approximately INR 56 lakh as interest. It further directed that additional interest would continue to accrue until the pending infrastructure works are completed. The authority has instructed BDA to comply with the order within a stipulated timeframe.
In its findings, K-RERA reiterated that statutory bodies such as BDA fall within the definition of promoter under the RERA Act when they undertake development and sale of plots. This classification makes them liable for delays, deficiencies and non-compliance in project execution, similar to private developers.
The case is part of a broader set of complaints concerning delays in the NPKL project, a large-scale residential layout development in Bengaluru that has faced scrutiny over infrastructure gaps and execution timelines. Previous rulings have also directed BDA to complete pending works, obtain occupancy certifications where applicable, and compensate allottees for prolonged delays.
The authority noted that merely executing sale deeds and issuing possession certificates does not absolve developers of their responsibility to deliver fully serviced plots. It emphasised that access to basic amenities is integral to the usability of a property and forms a core component of project delivery under the regulatory framework.
The ruling reinforces the role of RERA in ensuring accountability across both public and private sector developers. It also highlights the increasing willingness of homebuyers to seek regulatory intervention in cases of delayed infrastructure and incomplete project delivery.
The decision is expected to have implications for other allottees in the layout, many of whom have raised similar concerns, and may lead to further claims for compensation in cases where infrastructure delivery has been delayed.
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
