Top 5 Karnataka RERA Orders of 2025: Strengthening Homebuyer Rights

In 2025, the Karnataka Real Estate Regulatory Authority (KRERA) issued a series of landmark rulings that strengthened homebuyer protections, tightened accountability for developers, and clarified the reach of the Real Estate (Regulation and Development) Act in the state. From restraining lenders from taking over homes already sold to bringing statutory bodies within RERA’s ambit, these orders had wide-ranging implications for Karnataka’s real estate sector.

Here is a look at the top five KRERA orders that defined the year.

KRERA Restrains Lender from Seizing Sold Flats in Bengaluru Project

In a significant relief to homebuyers, KRERA restrained a finance company from taking possession of flats already sold in Aswani Sunshine, a project by Aswani Properties India Pvt Ltd in Bengaluru. The case arose after a buyer of two units approached the regulator, stating that despite having registered sale agreements, their flats were at risk of seizure due to the developer’s loan default.

The mortgage, originally held by Indiabulls Housing Finance and later assigned to Edelweiss Asset Reconstruction Company, had not been disclosed to the buyers at the time of purchase. After the promoter defaulted, the account became an NPA, and recovery proceedings were initiated, including steps to take possession of the mortgaged flats.

KRERA held that buyers who purchased homes in good faith could not be made to suffer due to an undisclosed mortgage and restrained the lender from taking possession or auctioning the complainant’s units. The order reinforced the principle that homebuyer rights cannot be overridden by post-sale recovery actions against developers.

Homebuyers Allowed to Take Over Stalled Belagavi Project Under Section 8 of RERA

In a rare intervention, KRERA allowed the Abhinandan Residency Welfare Association in Belagavi to take over and complete a stalled housing project following the developer’s death.

The project, about 40% complete, had remained stalled for over a year, leaving buyers paying EMIs without possession or clarity on delivery. After reviewing the submissions, KRERA ruled that the case met the conditions under Section 8 of the RERA Act, which empowers the Authority to intervene when a promoter fails to complete a project.

While noting that associations cannot claim takeover as a matter of right, KRERA stated that the facts justified an administrative transfer and authorised the association to complete the remaining work under its supervision. The order offered a practical route for stranded buyers to revive stalled projects.

₹1.08 Crore Interest Ordered for Delay in Bengaluru’s Tallest Residential Project

KRERA directed Golden Gates Properties Ltd to pay ₹1.08 crore as delayed interest to a homebuyer for failing to hand over possession of an apartment in Presidential Tower, a 50-storey luxury project in Yeshwanthpur.

The buyer had booked a nearly ₹2 crore apartment in 2014, with possession promised in 2017. Years of delay led the buyer to approach KRERA. The developer cited extensions under RERA and disruptions due to the pandemic.

Rejecting the defence, KRERA said there was no evidence that the buyer had consented to any change in the possession date or that a revised agreement had been executed. The order underlined that contractual timelines remain binding unless mutually altered, strengthening buyer claims for compensation in delayed luxury projects.

Developer Pulled Up for Misuse of Undivided Share and Failure to Construct Compound Wall

In another buyer-friendly ruling, KRERA pulled up DC Hi Rise LLP for failing to construct a compound wall and for attempting to reassign part of the project’s Undivided Share (UDS) to a future phase at its DC Capitol project in Bengaluru.

Around 50 homebuyers complained that the developer planned to use the internal driveway of Phase 1 as part of Phase 2, effectively altering the sanctioned layout and diluting their UDS.

KRERA held that a compound wall is not merely an aesthetic feature but is essential to define legal boundaries and ensure security. It directed the developer to build the wall according to the original plan and restrained them from repurposing the internal driveway or Phase 1 UDS. The order sent a strong message against unilateral changes to approved layouts.

BDA Declared a ‘Promoter’, Told to Register Kempegowda Layout Under RERA

In a precedent-setting ruling, KRERA held that the Bengaluru Development Authority (BDA) qualifies as a “promoter” under the RERA Act and directed it to register the Nadaprabhu Kempegowda Layout (NPKL) project, which has been under development since 2014.

Rejecting the BDA’s claim that it is a statutory authority outside RERA’s jurisdiction, KRERA held that when the agency develops land and allots plots or buildings for consideration, it clearly falls within the definition of a promoter. It directed the authority to register the project and upload all relevant approvals and layout plans.