In a landmark ruling strengthening homebuyer protection and regulatory oversight, the Karnataka Real Estate Regulatory Authority (K-RERA) has held that the Bangalore Development Authority (BDA) squarely falls under the ambit of the Real Estate (Regulation and Development) Act, 2016. The Authority declared that the BDA must be treated as a promoter for all housing and layout development projects and must comply with all obligations prescribed under the Act.
The ruling has far-reaching implications for thousands of allottees of the Nadaprabhu Kempegowda Layout (NPKL), one of Bengaluru’s largest layout development schemes.
RERA Orders Mandatory Registration of NPKL
The Authority has directed the BDA to register the entire Nadaprabhu Kempegowda Layout project within two weeks, bringing it under the regulatory supervision of RERA. Along with mandatory registration, BDA must file all layout plans, approvals, timelines, and supporting project documents.
This direction ensures that homebuyers will finally receive structured timelines, periodic updates, and legal accountability from BDA.
BDA Cannot Claim Exemption Under Any Special Statute
Rejecting BDA’s argument that it is an autonomous statutory body governed by the BDA Act, and therefore outside RERA’s jurisdiction, the Authority clarified that the nature of the project—public welfare or commercial—is irrelevant.
Under Section 2(zk) of the RERA Act, any agency—government or private—engaged in development, sale, or allotment of plots or buildings is a promoter.
RERA stated:
“Government development authorities are not exempt from compliance. When they develop and commercially allot plots or housing units, they act as promoters under the RERA Act.”
Section 89 of RERA: Overriding Effect
The order emphasized the importance of Section 89, which grants RERA an overriding effect over any conflicting provisions in other laws. This means that whenever there is any inconsistency between the RERA Act and the BDA Act, the RERA Act will prevail.
The Authority further relied on Supreme Court observations clarifying that government entities engaged in commercial sale of land or housing must comply with consumer protection and regulatory laws.
Petitioners’ Allegations Against BDA
The complaint, filed by Ramachandra Nayak and members of the Nadaprabhu Kempegowda Layout Residents’ Forum, highlighted several serious concerns:
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BDA failed to register the NPKL project under Section 3 of RERA.
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The layout lacked basic infrastructure, including:
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Water supply
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Sanitation and sewage systems
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Electricity connections
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Roads, drains, and parks
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The project remained uninhabitable despite allotments.
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BDA allegedly collected funds beyond permissible limits, violating norms.
The petitioners argued that homebuyers were left without transparency, timelines, or grievance redressal mechanisms.
BDA’s Defense Rejected
BDA maintained that:
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It functions under a unique statute focused on urban planning and public welfare.
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Its activities should not be considered “real estate development” in the commercial sense.
However, K-RERA rejected these arguments, stating that the Act applies uniformly to all development bodies that:
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Sell plots or housing units
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Collect money from allottees
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Undertake development and layout formation
The ruling is considered a major legal setback for BDA, which has long claimed immunity from RERA obligations.
Impact of the Ruling
This verdict is expected to bring transformative change to how large public-sector development authorities operate:
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Improved transparency through mandatory disclosures
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Enforceable timelines for project completion
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Accountability for delays and infrastructure gaps
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Legal protection for thousands of buyers
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Regulatory scrutiny of BDA’s finances, allotments, and development practices
For NPKL allottees, this order may finally push stalled and neglected works toward completion.
Conclusion
The Karnataka RERA’s groundbreaking order sets an important precedent: no development authority is above RERA regulations. By mandating that the BDA register the NPKL project and comply fully with the Act, the Authority has reinforced its commitment to transparency, consumer protection, and fair practices in the real estate sector.
The ruling has been widely welcomed by homebuyers and resident forums, who view it as a decisive step toward ensuring accountability in large-scale public projects.
