KRERA Ruling: Developers and Landowners Equally Liable for Water, Sewerage Connections in Bengaluru
The Karnataka Real Estate Regulatory Authority (KRERA) has ruled that both developers and landowners are jointly responsible for providing essential services like water and sewerage connections in joint development projects. This decision impacts numerous homebuyers in Bengaluru.
KreraReal EstateBengaluruWater ConnectionsSewerage ConnectionsReal Estate NewsAug 08, 2025
The ruling clarifies that in such partnerships, the responsibility for ensuring basic infrastructure cannot rest solely with the developer. Landowners are also equally accountable for fulfilling obligations that directly impact homebuyers’ access to fundamental services.
"The developer, landowner, and the association shall, in coordination with BWSSB authorities, take all necessary steps to secure final water and sewerage connections for the project," the order stated.
Additionally, KRERA emphasized that the developer and landowner must hand over all original project documents, including title deeds, Joint Development Agreement, approved plans, Occupancy Certificate, and statutory approvals, to the duly registered Residents' Welfare Association.
The order was issued in response to a complaint filed by 30 homebuyers of the Adi’s North Lake residential project in Bengaluru’s Yelahanka area. These homebuyers alleged that even years after taking possession of their homes, they continue to face difficulties due to the project’s failure to secure essential approvals and hand over the project to the residents' welfare association.
Residents of the Adi’s North Lake project, developed under a Joint Development Agreement between Adi Developers and a private landowner, complained that the builder failed to secure a water and sewerage connection from the Bangalore Water Supply and Sewerage Board (BWSSB), despite collecting charges from homebuyers. The lack of BWSSB certification has not only made them vulnerable to service disruption but also prevented them from applying for Cauvery water under Phase 5 of the city’s supply grid.
According to the complaint, the developer cited financial disputes with the landowner as a reason for not clearing the dues, despite buyers having made full payments. KRERA noted that BWSSB had issued a demand notice for ₹91.36 lakh in June 2021, but the challan expired due to non-payment. While the developer admitted to paying ₹30 lakh and has undertaken to deposit another ₹23 lakh within 15 days of the order, the landowner has allegedly failed to contribute his ₹38.37 lakh share of the statutory dues.
The developer acknowledged the demand notice issued by BWSSB for the said services. "Due to the COVID-19 pandemic and the non-cooperation of the landowner in contributing his share of the amount, the payment could not be made within the stipulated time, and the challan lapsed. However, the Developer has recently engaged with BWSSB authorities, and a new survey has been conducted. The process for issuance of a fresh challan is currently underway, the developer said," the order stated.
KRERA noted that the developer and landowner entered into a Joint Development Agreement in 2013, under which the developer was entitled to 58% and the landowner to 42% of the total built-up area. The authority observed that under Clause 28 of the Joint Development Agreement, both parties are proportionately liable for statutory charges, and any non-compliance by the landowner cannot deny homebuyers their basic services.
"It is a well-settled principle under RERA that both Developer and Landowner are jointly responsible for statutory compliances impacting service connections for residents. In the absence of the landowner's compliance, equitable relief must follow to uphold the residents' statutory rights," the order said.
Homeowners also complained that the developer has not yet handed over legal documents, operational records, or common area governance to the resident welfare association as required under Section 11(4)(e) of the RERA Act. KRERA acknowledged that the absence of a documented handover remains a critical compliance gap. The authority directed that all necessary documents and governance responsibilities must be formally transferred to the "duly registered" residents’ association.
A list of questions has been sent to the developer. The story will be updated once a response is received.
Frequently Asked Questions
What is KRERA?
KRERA stands for Karnataka Real Estate Regulatory Authority. It is a regulatory body established to protect the interests of homebuyers and ensure transparency and accountability in the real estate sector in Karnataka.
What are the key responsibilities of developers and landowners under KRERA?
Under KRERA, both developers and landowners are jointly responsible for statutory compliances, including providing essential civic services like water and sewerage connections to homebuyers in joint development projects.
What was the main issue in the Adi’s North Lake residential project?
The main issue in the Adi’s North Lake residential project was the failure to secure water and sewerage connections from the Bangalore Water Supply and Sewerage Board (BWSSB), despite collecting charges from homebuyers.
How does the KRERA ruling impact homebuyers?
The KRERA ruling ensures that both developers and landowners are equally accountable for providing essential services, which helps protect homebuyers from facing difficulties due to the lack of basic infrastructure in joint development projects.
What documents must be handed over to the Residents' Welfare Association?
The developer and landowner must hand over all original project documents, including title deeds, Joint Development Agreement, approved plans, Occupancy Certificate, and statutory approvals, to the duly registered Residents' Welfare Association.
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