Karnataka RERA Takes Action Against Bengaluru Builder for Khata Transfer Delay

Karnataka Real Estate Regulatory Authority (KRERA) has issued a notice to a Bengaluru-based builder for failing to transfer the khata of a residential property to a homebuyer, even after handing over possession of the property. The builder has been given 30 days to resolve the issue from the date of the order.

The regulator emphasized that the requirements of the law mentioned in Section 10 of the Real Estate (Regulation and Development) Act 2016 cannot be delayed due to financial issues or legal disputes. KRERA stated, “Once the possession of flats or land is given to the promoter, it becomes their duty to get all the requisite clearances in place.”

Transfer of khata is not a discretionary act. It is a legal obligation that flows from the completion and handover of the project, the authority noted in its order.

What is Khata and Why It Matters?

A khata is an official property record issued by Bengaluru’s civic body that establishes ownership and is essential for: - Payment of property tax - Registration of resale or transfer transactions - Availing loans and civic services

For apartment projects, developers must first secure bulk khata registration for the entire project before facilitating individual transfers in favor of allottees. KRERA has consistently held that initiating this process is the promoter’s responsibility.

Details of the Complaint

The complainant, who bought an apartment in Bengaluru in 2021 for 60 lakhs, claimed that the apartment was unfinished when possession was handed over. The buyer argued that without the necessary approvals, the apartment cannot be regarded as legally complete, posing various risks.

Builder Cites Land Dispute, Pandemic Impact

The developer denied the claims, stating they were misleading. The developer submitted to KRERA that: - The issuance of khata is related to a pending land dispute. - The buyer was in possession and had entered into the sale deed. - Basic infrastructure like electricity supply, water supply, parking facilities, sewerage treatment plants, and rainwater harvesting installations had been provided. - Economic stress from the pandemic had led to stagnant sales and losses.

However, this defense was not accepted by KRERA, which ruled that external challenges do not absolve the promoter from fulfilling statutory duties.

KRERA Reiterates Promoter’s Statutory Duties

Citing provisions of the RERA Act, KRERA stressed that developers are duty-bound to complete projects strictly in accordance with sanctioned plans and secure all statutory approvals. The authority stated, “It is the bounden duty of the promoter to obtain completion and occupancy certificates from the competent authority and make them available to allottees.”

The regulator further noted that handing over possession without completing these formalities defeats the purpose of regulatory protection extended to homebuyers.

Clear Timelines Set

To ensure compliance, KRERA issued specific directions: - All pending works related to the flat must be completed within 90 days. - The developer must transfer and facilitate khata in the buyer’s name within 30 days.

Failure to comply with these directions, the authority warned, could invite further action under the RERA framework.

Real estate experts say the order strengthens homebuyer rights in Bengaluru, where delays in occupancy certificates (OCs) and khata transfers remain common. The decision is expected to encourage greater accountability among developers and provide relief to buyers caught in prolonged post-possession approval delays.