Karnataka Real Estate Regulatory Authority (K-RERA) has ruled that builders cannot pass on project costs, including GST on BWSSB bills, to buyers before handover
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“It clearly defines pre-handover statutory costs as the builder’s liability, removing ambiguity,” he said. It could push developers to adopt digital payment tracking, itemised cost sheets and escrow-linked disclosures, he said. Anuj Sanjay Jain, director, SNN Raj Corp, said the ruling gives developers a chance to build buyer confidence by providing a detailed breakdown of construction costs, land costs and statutory dues. This, he said, would help buyers make informed decisions and reduce disagreements. Suresh Hari, former chairman, CREDAI Bengaluru, also welcomed the move but said financial implications needed careful examination. “Most development costs are already absorbed by developers, and GST on BWSSB bills could pose a significant challenge,” he said, seeking clarity on implementation under applicable laws. Koshy Varghese, director, VDB Property Ventures, said many developers were already paying such dues. Questioning why some did not settle dues themselves, he said professional accountability was essential. “The decision could strengthen buyers’ position, but they must still scrutinise sale agreements, demand itemised statements and retain payment records,” said some office-bearers.
Farook Mahmood, president emeritus, Bangalore Realtors Association of India (BRAI), called it a welcome step towards accountability. However, small and mid-sized developers could face short-term cash-flow pressure, he cautioned, while some may try to recover expenses by raising base prices, making effective monitoring essential. He called for consistent guidelines to protect buyers without exposing developers to ambiguities, and urged apartment owners to actively manage their associations, particularly common facilities and finances. Digital payment systems could help both sides verify transactions faster, he added. For now, home buyers’ associations are happy. “The larger test for the sector is whether developers disclose costs upfront and comply without shifting the burden through opaque pricing. Download the TOI App.
Bengaluru: Home buyers could get greater protection against unexpected charges while taking possession of a flat, following a Karnataka Real Estate Regulatory Authority (K-RERA) ruling that builders cannot pass on project costs, including GST on BWSSB bills, to buyers before handover. The decision addresses a common friction point: demands for extra payments close to possession, when buyers have already committed substantial sums. Clarity on who bears such costs could cut disputes. For buyers, the key benefit is clarity on financial obligations. For developers, it means tracking statutory dues, maintaining transparent accounts and complying with regulatory requirements.
For buyers, the ruling’s real value will depend not just on whether a charge is barred, but on whether overall costs are disclosed clearly from the outset.