In a significant step towards transparency in the real estate sector, the Real Estate Regulatory Authority of Karnataka (Karnataka RERA) has released a list of 2,403 stalled building projects. These projects, both government and private, have missed their completion deadlines and are now classified as “lapsed.” The move is seen as a much-needed intervention to protect homebuyers and ensure they are making informed decisions.
Additionally, five projects have been labeled as “defaulted,” with the prominent Bangalore Development Authority (BDA) Nadaprabhu Kempegowda Layout being one of them. These projects are highlighted for their failure to apply for extensions despite the expiry of their registration deadlines.
Surge in Lapsed Projects
The number of stalled projects in Karnataka has surged dramatically over the years. According to M S Shankar, General Secretary of the Forum for People’s Collective Efforts (FPCE), the number of lapsed projects has increased from 842 in 2020 to 2,403 in 2024. This alarming rise has raised concerns among homebuyers and real estate experts alike. Shankar emphasized that while Karnataka RERA has released the list, there has been little action or transparency regarding the steps taken against these projects, even though the RERA Act mandates such accountability.
Karnataka RERA has also received 10,215 complaints regarding ongoing projects, which have been made public on their website. The authority has advised potential buyers to exercise caution when considering investments in these projects, warning them that the proposed project completion dates have expired.
Need for Action and Inspections
Shankar and the FPCE have called for physical inspections of the lapsed projects and urged Karnataka RERA to take appropriate actions against developers who fail to comply with regulatory requirements. Despite the lapse of registration in hundreds of cases, there has been no visible data on any enforcement of penalties or actions initiated by the regulatory body. This lack of action continues to frustrate homebuyers who have been left in limbo.
Default List of Projects
The default list released by Karnataka RERA features five projects, including the BDA Nadaprabhu Kempegowda Layout, which failed to meet its completion deadline of December 31, 2021. The project has yet to secure an extension, leading to its inclusion in the default category. The other projects in the default list include:
- Konduru Srinivasulu in Bengaluru Urban,
- Raaga-1 in Mysuru,
- Sumeet Nagar in Kalaburagi, and
- Somyaji Kalpavruksha in Dakshina Kannada.
Conclusion
Karnataka RERA’s decision to make this information public is a significant step towards ensuring transparency in Karnataka’s real estate sector. However, stakeholders believe that more action is needed to ensure timely project completion and to protect the interests of homebuyers. The full list of lapsed and defaulted projects is available on the Karnataka RERA website, providing homebuyers with essential data to make informed decisions about their investments.