The Karnataka Real Estate Regulatory Authority (K-RERA) has announced plans to introduce a new ‘Project Closure Policy’, aimed at ensuring transparency, accountability, and protection for homebuyers. Once implemented, Karnataka will become the second state after Odisha to enforce such a policy, which will mandate verification of all legal and service-related matters before a builder can declare a project as complete.
Ensuring Verification Before Project Completion
Under the new system, builders will no longer be able to self-declare project completion without prior verification by the Authority. K-RERA will cross-check all aspects, including approvals from various departments, payment of dues, and fulfillment of promises made to buyers. This move is expected to bring greater transparency and end the practice of premature completion claims by developers.
K-RERA Chairman Rakesh Singh stated that the main objective is to bring credibility to project completion claims and ensure that builders provide accurate information. “This will put pressure on builders to provide accurate information and ensure that the promises made to homebuyers are fulfilled. Odisha has such a system, but nowhere else in the country. We have done a small study on this and expect the policy to be finalised in the next eight to ten days,” Singh said.
How the Project Closure Policy Works
According to officials, the Project Closure Policy will require developers to submit evidence of all mandatory approvals such as Occupancy Certificates (OC), BESCOM, BWSSB, PCB, and other local authority clearances before applying for project completion. Only after these verifications will K-RERA issue the final completion approval.
Builders who fail to comply with existing RERA or court orders, or have outstanding dues, will not be allowed to launch new projects. This measure will ensure that only compliant and responsible developers can operate, restoring trust in the real estate sector.
Data Reflects High Demand for Project Completions
As per the data for October 2025, K-RERA received 1,080 applications for project completion certificates or extensions. Of these, 886 were approved, 69 rejected, and 125 are pending. Additionally, the completion period for 2,746 projects has already expired, indicating a pressing need for stronger monitoring mechanisms — something this new policy aims to address.
Homebuyers Welcome the Move
Homebuyer associations across Karnataka have welcomed the move, saying it will curb fraud, delays, and false completion claims. Members of the Karnataka Home Buyers Forum and the Forum for People’s Collective Efforts (FPCE) have long been demanding such a measure.
Forum convener Dhananjay Padmanabhachar said that the lack of verification has allowed builders to declare projects complete even when essential works were pending. He highlighted cases where RERA had to intervene to force builders to obtain khatas, transfer title deeds, and complete unfinished work. “This new policy will help avoid all these processes,” he said.
A Step Toward Transparency and Buyer Protection
The proposed policy is expected to set a new benchmark in real estate governance. By ensuring that every completed project undergoes legal and technical verification, K-RERA aims to protect homebuyers, prevent fraudulent declarations, and strengthen confidence in Karnataka’s real estate sector.
If successfully implemented, this model could inspire other states to follow suit, marking a significant milestone in India’s real estate regulatory landscape.
