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Bengaluru homebuyers push back against Bengaluru Development Authority’s bid for RERA exemption, citing repeated delays
Bengaluru homebuyers oppose BDA’s plea for RERA exemption, citing delays in projects like Gunjur and Kempegowda Layout; urges KRERA to hold BDA accountable
Bengaluru homebuyer forums have filed written objections before the Karnataka Real Estate Regulatory Authority (KRERA) opposing the Bengaluru Development Authority’s (BDA) claim that it should be exempt from RERA’s ambit.
Earlier, BDA had sought exemption from provisions of the Real Estate (Regulation and Development) Act, 2016, in a plea made before the Karnataka Real Estate Regulatory Authority (RERA). It argued that the BDA Act is a self-contained legal framework, repeatedly upheld by the Supreme Court, and hence the RERA Act does not apply to its projects or complaints. The Authority insisted that it cannot be treated as a ‘promoter’ under Section 2 of RERA, since its role is that of a statutory planning and development body, not a commercial developer.
However, homebuyers contend that this would leave thousands of allottees without recourse, especially as several BDA housing schemes are facing delays. They said BDA apartments in Gunjur, which have been pending completion for over five years, and in the Kempegowda Layout, plot allottees continue to face uncertainty despite completed bookings.
BDA seeks exemption from KRERA
In written submissions filed in the Nadaprabhu Kempegowda Layout matter, the BDA claimed that its functioning is governed entirely by the BDA Act, 1976, which it described as a “self-contained code” upheld by the Supreme Court. The Authority insisted that it cannot be treated as a ‘promoter’ under Section 2 of RERA, since its role is that of a statutory planning and development body, not a commercial developer.
Talking about project completion, BDA said, “Only after the government completes the acquisition of the land, does the question of completion of the project arise. As the acquisition of land is rift with challenge to the same in various courts of law, the acquisition process is not complete, and therefore, the BDA cannot be held liable for it. Furthermore, the developmental activity undertaken by the BDA to such a large extent is time-consuming and requires a humongous amount of resources. Hence, no strict timeline can be followed by the BDA in forming the layout,” the statutory body wrote in its submission to KRERA.
The BDA argued that applying RERA provisions would cripple its ability to deliver affordable housing, citing complexities in land acquisition, litigation delays, and the need to cross-subsidize infrastructure works through housing projects. It maintained that restrictions under RERA, such as project-specific fund allocations, would make large-scale development impossible or a statutory body tasked with city planning.
HT.com has sent a list of queries to BDA and KRERA. The story will be updated if a response is received.
Homebuyers urge KRERA to deny exemption
The Karnataka Homebuyers Forum, in its submission to KRERA, has objected to the Bengaluru Development Authority’s (BDA) request to be kept outside the purview of the Real Estate (Regulation and Development) Act, 2016 (RERA).
“The RERA Act was brought in by the Central Government to bring transparency in the sector and make promoters accountable to buyers. It is shocking and surprising that BDA, which itself is acting as a promoter by developing apartments and sites, is now seeking exemption from registering its projects under RERA,” the forum stated in its submission to Rakesh Singh, chairman of Karnataka Real Estate Regulatory Authority.
“Many homebuyers who booked apartments or sites in BDA schemes are still waiting for completion. Even after five to six years, projects such as the BDA Gunjur Apartments and Kempegowda Layout remain unfinished. If BDA is developing and selling property to the public, it must be treated like any other promoter and registered under RERA,” the homebuyers’ forum argued.
According to the forum, RERA is the only effective redressal mechanism available to buyers who are struggling with delayed possession and incomplete civic infrastructure.
“When homebuyers are suffering, the only ray of hope is the RERA Authority in Karnataka. We are confident that the Authority will ensure every promoter, including BDA, comes under its jurisdiction as per the law, and that no exemptions are granted,” the buyers’ argued.
‘No separate rules for BDA,’ say homebuyers
Bengaluru homebuyers have opposed the BDA plea to be exempted from RERA, arguing that such a move would undermine the very purpose of the law.
“RERA was brought in by the Government of India to protect homebuyers and ensure transparency in real estate projects. When the law applies to private promoters, why should BDA be treated differently?” asked Dhananjaya Padmanabhachar, convenor of the Karnataka Homebuyers Forum.
“There are many cases where BDA has not delivered on time, or failed to complete projects even after giving possession. This has left thousands of families in limbo,” he said.
He said that BDA cannot operate outside the regulatory framework while functioning as a promoter. “Either BDA must strictly follow the RERA Act guidelines when developing and selling property, or it should step away from developing real estate altogether. We cannot have separate rules for BDA and private builders,” Padmanabhachar said.
According to the Forum, granting exemptions would set a dangerous precedent, effectively weakening buyer protection mechanisms. “The intent of RERA is very clear; it was designed to hold promoters accountable. No exemption should be given to BDA or to any other authority engaged in property development,” he said.
Gunjur BDA apartments in limbo
The Gunjur BDA housing project continues to remain incomplete, leaving hundreds of allottees stuck even after more than a decade of waiting.
Narayana Shetty, one of the homebuyers, recalled that his flat was allotted in 2013, and a completion notice was issued in 2015. “But when we went to see the apartments, they were not fit for living, there was no lift, no electricity, just bare walls,” he said.
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In 2017–18, BDA claimed to have terminated the old contractor and brought in a new one, but progress on the ground was negligible. In June 2018, hundreds of allottees staged a protest demanding faster work, yet little has changed since then.
According to Shetty, the project comprises 868 flats, with 3BHK units priced around ₹42 lakh today. However, even after repeated assurances, only about 70 percent of the work is complete. “Permanent electricity connection came only in March last year, but essential facilities like the sewage treatment plant (STP) and water supply are still missing,” he said.
The buyers had earlier filed a case with the Lokayukta against both BDA and RERA in 2023. The anti-corruption body began its investigation in 2025, and RERA hearings have also commenced this year, but residents say their wait for livable homes continues.
