Karnataka Real Estate Regulatory Authority steps up crackdown on unregistered projects, flags regulatory gaps

Bengaluru: The Karnataka Real Estate Regulatory Authority (K-Rera) intensified its scrutiny of unregistered developments, focusing on identifying violations, verifying project status, and initiating action against errant promoters to safeguard homebuyers. Notices were issued to verify project status and registration, as some were later found to be registered.According to data from the authority, 765 complaints were received across Karnataka since 2021 regarding unregistered projects. Orders were passed in 440 cases, while 325 cases were under various stages of hearing and processing.
Officials said a large share of complaints related to projects that may not even exist on the ground or were already registered, necessitating a verification-first approach. In many instances, notices were issued up to three times to elicit responses from promoters and establish facts.Under the Rera Act, any residential project with more than eight units or a land area exceeding 500 sqm must be registered with the authority.One of the biggest challenges, Rera officials said, was that some complaints arose from mistaken uploads on the portal or confusion among buyers about whether a builder was actually executing a project. As a result, the ongoing drive was as much about filtering genuine violations as it was about enforcement. Once a project was confirmed to be unregistered despite falling under Rera criteria, the matter was referred to the competent authority for hearings and orders against the promoter.However, officials pointed to structural gaps that allowed some promoters to bypass registration. Planning authorities grant project approvals and even occupancy certificates independently of RERA in certain cases. Moreover, Rera registration is not a mandatory prerequisite during property registration with other planning authorities, such as the urban development department or stamps department.Explaining the reason behind non-registration, a senior official from Rera told TOI: "As the registration is not tightly linked to other approvals, some promoters tend to skip it. Planning authorities can issue sanctions and occupancy certificates independently, and property registration also doesn't mandate a Rera number, so unless other statutes make it compulsory, a few builders try to proceed without registering. When projects are registered, buyers get verified information on approvals, timelines and finances. In case of fraud, they can file a complaint and fight as well."Unregistered projects are those launched without mandatory Rera registration or disclosures on approvals. They are considered risky as they escape regulatory scrutiny, raising chances of fraud and safety concerns. K-Rera said the drive aimed to safeguard homebuyers.Homebuyer associations said the bigger challenge was low awareness among buyers, noting that many purchasers still do not check Rera registration details and rely largely on builders' assurances, leaving them vulnerable to delays and legal disputes.Dhananjaya Padmanabhachar, convenor, Karnataka Home Buyers Forum, said: "It's the responsibility of Rera to ensure every eligible project gets registered under Rera without exception. This will ensure home buyer protection. We saw a few promoters whose projects got cancelled register as new projects with new promoter company names. The authority must use the data available in their records to scrutinise the promoters and ensure it protects home buyers' rights."R Rajagopalan, convenor, Bengaluru Coalition, said: "The root problem lies in how approvals are granted, and while court views are one part, the bigger issue is buyer awareness — many buyers still fall for unregistered projects based on builders' claims. What we need is proactive protection of citizens' rights by govt and statutory bodies. Most violations fall in grey areas like unit count or square footage where loopholes are used, and the real question is how authorities bring both non-applicants and non-compliant registrants into the compliance net."