In a significant move to enforce accountability under the Real Estate (Regulation and Development) Act, 2016, the Karnataka Real Estate Regulatory Authority (K-RERA) has directed a Haryana-based real estate developer to submit a detailed compliance report and action plan within 30 days in connection with the residential project Astrum Grandview – Phase I in Mysuru.
The order, dated December 31, 2025, was passed while hearing complaints filed by 19 aggrieved homebuyers, who alleged that despite taking possession years ago, several promised amenities, statutory compliances and common facilities remain incomplete.
Direction to Submit Time-Bound Compliance Plan
K-RERA has specifically instructed the promoter to place on record a clear, time-bound schedule detailing:
Completed amenities and infrastructure works
Pending common facilities and services
Statutory compliances yet to be fulfilled
Documentary proof demonstrating compliance with sanctioned plans, agreements for sale, brochures and representations made to buyers
The Authority made it clear that non-submission of the compliance report or failure to adhere to the directions will invite action under Section 63 of the RERA Act, without any further notice. Section 63 empowers K-RERA to impose penalties of up to 5% of the total project cost.
According to the complainants, the project was launched in July 2014, with the Bhoomi Pooja conducted amid assurances of timely completion and delivery of all promised amenities. The buyers stated that they had paid the entire sale consideration, along with:
Advance maintenance charges
Club membership fees
Corpus fund of Rs 1 lakh per allottee
Possession letters were issued between 2020 and 2022, and several sale deeds were registered. However, the builder allegedly failed to complete the project even after handing over possession.
The complaints highlighted that the promoter has not obtained the completion certificate, has not executed the deed of declaration, has failed to form or hand over the association of allottees, and has left key common amenities incomplete, placing residents in prolonged uncertainty.
Builder’s Stand Before K-RERA
The promoter contended that Astrum Grandview – Phase I was duly registered with K-RERA and pertained solely to the construction of 132 apartment units, which, according to the builder, stood completed. The developer claimed that possession had been handed over strictly in accordance with the sale deeds and contractual terms.
However, K-RERA found it necessary to seek a comprehensive compliance disclosure, indicating that mere possession does not amount to legal project completion under RERA.
Why Completion Certificate Matters
Reacting to the order, Karnataka Home Buyers’ Forum convenor Dhananjaya Padmanabhachar termed K-RERA’s insistence on obtaining the project completion certificate as a crucial step in safeguarding homebuyers’ rights.
He explained that a completion certificate can be issued only after the promoter fulfils multiple obligations, including:
Completion of construction as per approved plans
Obtaining the occupancy certificate
Formation and registration of the association of allottees
Transfer of land to the association under Section 17 of RERA
Transfer of common areas under Section 16 of RERA
Handing over corpus funds and project documents
Padmanabhachar also pointed out the irony that while builders face penalties, state-level clarity on association registration and land transfer mechanisms under RERA remains lacking, which could complicate enforcement.
A Strong Signal to Builders
This order sends a clear message that handing over possession without completing statutory obligations and amenities is not acceptable under RERA. By invoking the threat of penalties under Section 63, K-RERA has reaffirmed its role as a watchdog ensuring full project delivery, transparency and buyer protection.
