Because its enforcement mechanisms remain weak, karnataka Real Estate (Regulation and Development) Act argues has failed to deliver meaningful protection.
In Feb 2026, Chief Justice of India Surya Kant criticised the functioning of regulatory institutions, observing: “Except facilitating builders in default, this institution is doing nothing. Rs 12.44 lakh crore of 27.6 lakh families is stuck in stalled projects, with the Supreme Court noting that authorities are doing little except facilitating defaulting builders. In Karnataka, over 3,100 projects have lapsed, yet K-RERA rarely inspects them. Only 33% of projects have sought completion, while nearly 30% have lapsed.
It has also called attention to the need for stricter monitoring of project funds so that money collected from buyers is used for the projects for which it was raised. You Can Also Check: Gold Rate in Bengaluru | Silver Rate in Bengaluru | Bank Holidays in Bengaluru | Public Holidays in Bengaluru | Bengaluru AQI | Weather in Bengaluru | Petrol Price in Bengaluru | Diesel Price in Bengaluru | CNG Price in Bengaluru | LPG Price in Bengaluru Stay updated with the latest Bengaluru news.
MS Shankar, general secretary, FPCE, said: “A decade after RERA’s enactment, regulatory failure has turned a landmark reform into a tool of promoter accommodation. FPCE’s proposed reforms seek to address the gap between regulatory orders and actual relief to buyers. The forum wants stronger enforcement mechanisms to ensure developers comply with refund orders instead of leaving homebuyers to fight separate legal battles to recover their money. Effective scrutiny of withdrawals from project accounts and accountability for diversion of funds are essential to prevent construction from being abandoned. Another priority is ensuring that project completion deadlines are enforced. Regulatory authorities must have effective mechanisms to intervene when projects are delayed or developers default. The forum has also highlighted the need to address one-sided builder-buyer agreements, which often place buyers at a disadvantage. Standardised and fairer contractual provisions, along with stronger accountability for developers, could help correct this imbalance. The larger question is whether RERA needs amendments to address gaps in the legislation or whether existing provisions need to be enforced more effectively. A coordination committee under the chief secretary must set time-bound targets. Download the TOI App.
FPCE detailed the issue in a letter to Prime Minister Narendra Modi , marking 10 years of RERA. Because the developer has allegedly diverted money collected from purchasers to other projects or purposes, a third buyer discovers that construction has stalled. Because its enforcement mechanisms remain weak, the forum, which emerged from the grassroots ‘Fight for K-RERA’ campaign that pushed for the legislation, argues that the law has failed to deliver meaningful protection.
Bengaluru: Ten years after Karnataka Real Estate (Regulation and Development) Act (RERA) promised to protect homebuyers from unscrupulous developers, buyers continue to face the same problems the legislation was intended to address — delayed possession, stalled projects, diversion of funds and difficulty recovering their investments. For many, approaching K-RERA has not necessarily brought the relief they expected. Consider three situations that expose the gaps in the regulatory framework: A family books an apartment, takes a home loan and pays EMIs for years, but the developer fails to complete the project on time. The family is left paying both rent and loan instalments, with no certainty on when they can move into their new home. In another instance, a buyer who loses patience with repeated construction delays approaches K-RERA and obtains a refund order. But the developer refuses to pay. The buyer is forced to pursue further legal proceedings to recover his money, defeating the purpose of approaching a consumer-focused regulator. weak monitoring and enforcement can leave buyers exposed to financial losses Although RERA provides safeguards for the use of project funds. These are among the shortcomings flagged by Forum for People’s Collective Efforts (FPCE), a member of the central advisory council under RERA in the Union ministry of housing and urban affairs.