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Karnataka has over 2630 delayed real estate projects: KRERA
Karnataka real estate: Over 2630 real estate projects miss completion deadlines. Legal experts advise buyers to confirm if a project has a valid RERA extension
Over 2,630 real estate projects in Karnataka have missed their completion deadlines, with many facing indefinite delays. Bengaluru alone accounts for more than half of the stalled projects in Karnataka, with 1,301 projects. Additionally, 1,007 projects have already applied for an extension and are currently awaiting approval from KRERA, according to data from the Karnataka Real Estate Regulatory Authority (KRERA).
"The public is hereby informed that the project registration period for the following projects has expired and has yet to be renewed. The public is hereby warned that dealing with these projects would be at their own risk," a message on the KRERA website said. The data available on the KRERA website is as of March 3, 2025.
The list includes several listed developers, the data showed.
"Despite multiple complaints, Karnataka RERA and government bodies remain ineffective. Digital South Trust, a non-profit organisation, has already urged PM Narendra Modi to intervene, demanding strict legal action, financial penalties, and real-time project monitoring to protect homebuyers from further exploitation," said Sudhakar Lakshman, one of the buyers.
Developers' response
HT.com has sent a list of queries to KRERA and the real estate developers. If a response is received, the copy will be updated.
In its response, Brigade Group's spokesperson said that “The occupancy certificates for both Feldspar and Krypton projects were issued on March 1, 2024, by the concerned authority. Updating OC to RERA is just a procedural aspect, which is also linked to the registration of conveyance deeds to end customers. Because of the new requirement of e-Swathu, all sale deed registrations are pending. That is being attended to now.”
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What is a RERA extension certificate?
A RERA Extension Certificate allows a real estate developer to extend the project completion deadline beyond the originally approved timeline.
Under the RERA Act, developers must register their projects and provide a completion timeline. However, due to delays—such as financial issues, legal hurdles, labour shortages, or force majeure events (eg., COVID-19)—developers may need extra time to complete the project. In such cases, they can apply for RERA extension certificates.
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Legal experts say that homebuyers should check for KRERA extensions before investing
Legal experts emphasize that for homebuyers, it is crucial to verify whether a delayed project has a valid RERA extension to assess its completion prospects.
"Without a valid extension of the project registration, developers are required to pay a penalty of 5% of the total project cost to KRERA. This serves as a deterrent against unnecessary delays and ensures greater accountability in project completion. If the penalty is not paid, the project remains unregistered, which can hinder the developer's ability to operate legally," explained Akash Bantia, an advocate at KRERA.
An unregistered project carries significant risks for home buyers. Most banks refuse to approve home loans for properties lacking a valid RERA registration, further complicating financing options, he said.
He said developers who fail to obtain an extension stop uploading mandatory quarterly filings on the KRERA website. He said that these filings provide crucial updates on project progress, financial disclosures, and construction status, leaving homebuyers in the dark about their investments.
"Before purchasing a property, it is essential for homebuyers to visit the official KRERA website and verify whether the project has a valid registration and extension certificate. The website provides a comprehensive checklist of approvals and legal documents required for an extension," Bantia added.
