Bengaluru real estate: Can homebuyers seek relief from Karnataka Real Estate Regulatory Authority for ‘loss of rent’?

KRERA directed a Bengaluru developer and partner to pay ₹12 lakh yearly to a buyer for ‘loss of rent’ after delayed possession despite sale deed execution

Published on: Apr 27, 2026, 11:02:30 IST

By Souptik Datta

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The Karnataka Real Estate Regulatory Authority has directed a Bengaluru-based developer and its partner to pay ₹12 lakh annually to a homebuyer towards ‘loss of rent’ after failing to hand over possession of a flat despite executing the sale deed. It also ordered ₹2 lakh as compensation for ‘mental agony.’

Karnataka RERA directed a Bengaluru developer and partner to pay ₹12 lakh yearly to a buyer towards 'loss of rent' after failing to hand over a flat despite executing the sale deed. (Photo for representational purposes only) (AI generated image using ChatGPT)

‘This court cannot ignore the prevailing rental/commercial realities in a metropolitan city such as Bengaluru. Apart from the financial loss, the complainant has also suffered inconvenience, uncertainty and hardship due to the failure of the respondents to give the rent of the said flat to the complainant,” KRERA said in its order.

In this case, the developer, Surya Homes, and its partner, Bagpack Suites Bangalore Pvt Ltd, told KRERA that disputes relating to rent were outside the authority's jurisdiction.

“The respondents are hereby directed to pay compensation of ₹12 lakh per annum to the complainant towards loss of rent calculated from 06.12.2019 till handover of physical possession by deducting the amount, if any, already paid towards rent,” the order said.

“Further, the respondents are directed to pay compensation of ₹2 lakh towards mental agony to the complainant,” it said.

Also Read: Bengaluru homebuyers push back against Bengaluru Development Authority’s bid for RERA exemption, citing repeated delaysThe case

In this case, the homebuyer entered into an agreement in July 2019 to purchase an apartment in the Surya Elegance project, including a covered parking space. He initially paid ₹17.7 lakh and later completed the purchase in December 2019 by paying the remaining ₹93.2 lakh. In addition, he spent around ₹20 lakh on interiors, taking his total investment in the property to about ₹1.30 crore, the order noted.

“The developer agreed to pay a rental of ₹1.06 lakh per month from the date of registration. So far, he has paid an amount of ₹7.69 lakh. Rent amount due as on 16.12.2022 is ₹30.81 lakh,” the order noted.

The homebuyer told KRERA that the developer is liable to pay interest for the delay and also compensate for not handing over possession on time.

However, the developer told the authority that the company had completed the construction in 2018 and also obtained the occupancy certificate in November 2018.

“The developer contended that the obligation of the respondents towards the said flat is completed once the sale deed was registered on 06.12.2019 and handover possession of the same in favour of the complainants on the same day,” the developer submitted before KRERA.

“They are not at all obliged to pay any rentals to the complainants as they have not entered into any rental agreements/arrangements with the complainants. This court has no jurisdiction to adjudicate the claims for rents by the complainants,” the developer submitted.

Also Read: KRERA pulls up Bengaluru developer for delay in issuing khata to a homebuyer

KRERA order

The authority noted that the homebuyer approached the court seeking compensation for ‘loss of rent’ and ‘mental agony’.

“The grievances are that he had purchased an apartment in the project of the respondents under a sale deed dated 06.12.2019, and on the same day, the respondents have taken possession of the same, agreeing to pay rent of Rs. 1.06 lakh per month from the date of registration. Thereafter, the developer had paid an amount of ₹7.69 lakh to date. Hence, the rent amount due is ₹30.18 lakh,” it said.

The authority noted that even though the developer had executed the sale deed and received the full payment, they continued to retain the flat under the pretext of paying rent, thereby depriving the complainant of using the property or earning rental income from it for a significant period.

The authority observed that possession had been withheld and held the respondents accountable for the resulting financial losses and the hardship caused to the complainant.

A list of questions has been sent to the developer. The story will be updated once a response is received.

ABOUT THE AUTHOR
Souptik Datta
Souptik Datta is a deputy chief content producer at Hindustan Times Digital, where he reports on southern India with a focus on real estate, urban infrastructure and environmental urban issues. His coverage tracks the intersection of policy, capital flows, regulation and sustainability, examining how these forces shape housing markets, commercial real estate and large-scale infrastructure development across rapidly transforming cities. He also closely tracks civic issues affecting urban residents, including property taxation, planning approvals, public transport expansion, water stress, waste management and the governance challenges that influence everyday life in India’s metros. Souptik’s reporting is driven by a strong interest in accountability, consumer rights and the lived realities of homebuyers and investors navigating volatile pricing cycles, regulatory changes and project delivery risks. He frequently analyses project launches, land monetisation strategies, planning frameworks, RERA-related developments and the broader implications of infrastructure investments on emerging growth corridors. His work blends on-ground reporting with data-backed analysis and long-form explainers aimed at demystifying complex real estate and infrastructure developments for readers. He is an alumnus of the Indian Institute of Journalism and New Media. Before joining Hindustan Times Digital, Souptik was associated with Moneycontrol at Network 18, where he covered real estate, infrastructure and allied sectors, producing market insights, policy-led stories and in-depth features. Outside the newsroom, Souptik is an avid solo traveller and documentary enthusiast, exploring diverse regions and visually documenting unique narratives through film and photography. In his early career, Souptik also freelanced as a documentary photographer, independently working on visual storytelling projects that captured grassroots narratives, urban change and everyday life. He can be reached at souptik.datta@htdigital.in.Read More

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