The Karnataka Real Estate Regulatory Authority (KRERA) has issued a strong order against a Bengaluru-based real estate developer for failing to provide the khata document to a homebuyer within the stipulated timeline agreed under the sale deed. The Authority categorically observed that transfer of property title is incomplete unless a registered conveyance deed, occupancy certificate (OC), and khata transfer are duly executed in favour of the allottee.
This ruling once again underlines the strict contractual and statutory obligations of developers under the Real Estate (Regulation and Development) Act, 2016 (RERA).
The matter came before KRERA after a homebuyer filed a complaint alleging non-issuance of khata within the agreed 60 days from the date of registration. Despite taking possession of the apartment and starting home loan EMI repayments, the buyer was unable to complete essential ownership formalities due to the absence of khata.
The complainant stated that the delay caused serious financial distress, as he was forced to simultaneously pay EMIs and rent, while being unable to regularise ownership records.
Contractual Obligations Highlighted by KRERA
Referring to the sale deed dated January 3, 2025, KRERA pointed to Clause 136, which clearly states that once khata is transferred in the purchaser’s name, the developer ceases to have any claim or right over the flat.
Highlight: KRERA reiterated that contractual terms bind both parties, and a developer cannot escape obligations agreed under the sale deed.
The Authority further clarified the legal framework under Section 17(1) of the RERA Act, which mandates that legal transfer of title is complete only after:
• Execution of a duly registered conveyance deed
• Issuance of Occupancy Certificate by the competent authority
• Khata transfer in the name of the allottee
Highlight: Khata transfer is an essential component of ownership, not a mere procedural formality.
Developer’s Role in Khata Transfer
KRERA explained that in newly constructed apartment projects:
• Developers must complete bulk khata registration for the property
• Individual allottees carry out the final khata transfer, but only after developer facilitation and cooperation
In this case, the developer’s delay directly obstructed the buyer’s statutory and financial rights.
Delay Beyond Promised Timeline
The homebuyer demonstrated that while the developer promised khata issuance within 60 days, more than 110 days had elapsed. This resulted in a cascading delay in legal compliance and financial planning.
Highlight: KRERA noted that such delays are serious and may attract liability and compensation if non-compliance continues.
KRERA’s Directions and Warning
While disposing of the complaint, KRERA:
• Directed the developer to facilitate and assist khata transfer within 30 days
• Issued further queries to the developer, indicating enhanced scrutiny
• Warned that compensation proceedings may follow if the order is not complied with
Growing Concern in Bengaluru’s Real Estate Market
Property documentation delays, particularly khata-related issues, have become a growing concern in Bengaluru. Experts note that absence of khata can prevent buyers from:
• Paying property taxes
• Availing municipal services
• Selling, leasing, or mortgaging the property
Highlight: Delays in khata transfer can severely dent buyer confidence and affect the credibility of the real estate sector.
Conclusion
KRERA’s order is a clear reminder that developers must honour contractual timelines and statutory duties under RERA. Timely khata transfer is not optional—it is a legal necessity. The ruling strengthens homebuyer protection and reinforces accountability in Karnataka’s real estate ecosystem.
