We specialize in leasing commercial spaces and investment services for all prime properties

As of December 31, 2024, real estate developers in Karnataka owe homebuyers ₹667 crore for delayed apartment deliveries. This amount is part of 1,660 cases filed with the Karnataka Real Estate Regulatory Authority (KRERA), totaling ₹758.8 crore. However, KRERA has only managed to recover ₹91.8 crore, which is just 14% of the total owed.

According to the Real Estate (Regulation and Development) Act, 2016, builders must compensate homebuyers if they delay project deliveries. If they don’t, KRERA can issue a recovery certificate, allowing the state revenue department to collect the money. But it is the district administration that actually carries out the recovery.

The delay in recovering the funds has become a major issue. Legal experts say the problem lies in developers’ projects being mortgaged or stuck in long auction processes, making recovery difficult. As a result, the total amount owed has increased by 37%, from ₹486 crore in January 2024 to ₹667 crore by the end of December.

Homebuyers are frustrated by the slow process. Dhananjaya Padmanabhachar, director of the Karnataka Homebuyers' Forum, says that many builders are ignoring KRERA orders, causing financial hardship for homebuyers. Sudhakar Lakshmanaraja, another affected buyer, mentioned that despite ₹40 lakh pending in his case, developers are still allowed to start new projects.

Experts suggest that KRERA should blacklist defaulters to speed up the recovery process. Homebuyers are calling for stronger action to protect their rights and ensure that they get the refunds they are owed.

In conclusion, the ongoing delays in recovering funds from builders are leaving homebuyers in difficult situations, and KRERA is under pressure to take more effective action.

For all your real estate and rental needs, visit EazeMyRent.