K-RERA puts builders on notice over project updates

Bengaluru: In a further boost to homebuyer rights and also to encourage compliance with its rules, Karnataka Real Estate Regulatory Authority (K-RERA) has cracked the whip on 155 promoters in the state who have not filed their mandatory quarterly reports yet. The RERA crackdown is seen as a tough warning to builders, who do not post timely updates on their projects and progress.Promoters who have failed to obey the order face penalties of up to 5% of the total estimated project cost and Rs 25,000 for every quarter missed. However, the 155 builders have not been declared defaulters yet. "If they do not file returns by the end of the current financial year, then necessary action will be taken against them," a K-RERA officer said.
From April 1, K-RERA will initiate recovery proceedings for delayed or non-submitted quarterly updates. The authority has given time till March 31 for promoters — including petitioners in relevant writ petitions — to submit pending updates without penalty.On Feb 7 this year, K-RERA issued a circular imposing fines and timelines for submission of quarterly updates by promoters who delayed or skipped mandatory quarterly project updates between 2017-18 and 2024-25. This follows up on an earlier circular dated Sept 3, 2020, and an order of Karnataka high court dated Sept 19, 2025.Several promoters challenged the 2020 circular before Karnataka high court, which quashed the order. The court, however, clarified that this would not prevent the imposition of fees in a manner recognised by law. Builders agreed that quarterly filings are largely procedural and technical and said penalties — justified, though — should be "acceptable, nominal and proportionate".A senior K-RERA official explained the importance of filing timely quarterly reports as the exercise helps the authority to track project progress. "In case of delays, we can identify such projects early. If homebuyers do file a complaint, then we can take action against the promoter," he said.While welcoming K-RERA's move, homebuyers expressed mixed views on its likely effectiveness. They said the measure enables authorities to take suo motu action if timelines are not met. However, many felt the penalty was too low to make a substantive impact. Despite earlier circulars, quarterly project updates are often not properly monitored, and the lack of a clear project completion policy raises questions about accountability.+++++++++++PENALTY CORNER* Period from Q2 2017-18 to Q2 2018-19 treated as one quarter since the web portal was available only from Q2 2018-19. Promoters to pay penalty of Rs 25,000 a quarter, totalling Rs 25,000* For Q3 and Q4 of 2018-19, quarterly penalty of Rs 25,000 kicks in, totalling Rs 50,000* For each of the financial years (2019-20, 2020-21, 2021-22, 2022-23, 2023-24, and 2024-25), quarterly penalty is Rs 25,000, amounting to Rs 1 lakh a year* As per 2020 order, Rs 10,000 penalty for delay of one month after the due date; after one month, delay penalty doubles to Rs 20,000PAYMENT CALENDARPromoters must submit quarterly project updates through K-RERA portalQUARTERS…………..DEADLINEQ1……………………………...July 15Q2……………………………..Oct 15Q3……………………………..Jan 15Q4……………………………April 15