Over 2,600 real estate projects expire in Karnataka, many more lapse: Real Estate Authority data

Bengaluru: Karnataka Real Estate Authority (K-Rera) has initiated scrutiny of numerous residential complexes for failing to meet their completion timelines and neglecting to submit periodic progress reports. A significant number of real estate projects failed to meet their deadlines, with over 2,600 officially marked as ‘expired' and more than 2,700 classified as ‘lapsed', as per latest K-Rera data.Under Rera rules, a real estate project is tagged as expired when its registration period ends and the builder hasn't applied for an extension. It is marked as lapsed if the project remains incomplete and no renewal is granted. In both cases, the registration stands invalid, exposing the builder to possible penalties and regulatory action.Out of 7,707 registered projects, 2,632 builders defaulted on their commitments, with failure to deliver flats on time being the most common problem. The rules allow developers to apply for an extension for a year or so. However, none of them applied for an extension within the time frame.Rera rules mandate builders to declare the date of completion while signing agreements with buyers at the initial stage. They must also upload the project status once every three months on the K-Rera portal. They are liable to pay a penalty of up to 10% of project cost for non-compliance with the rules, and the authorities can even attach assets of the promoters to recover the penalty and compensation to be paid to buyers.Developers have to provide all project details in their quarterly updates, which include the amount of money collected from buyers and spent on each component. The report should give a clear picture of the status of the project and what works are pending.Impact on buyersThe situation has raised concerns about prolonged construction delays and the potential impact on homebuyers.Dhananjaya Padmanabhachar, convener of Karnataka Home Buyers' Forum, said: "If a Rera registration lapses, it is the promoter's duty to renew it — buyers' rights remain protected under Rera regardless. Yet, even after eight years, Karnataka Rera has failed to deliver justice or issue clear guidelines for project closures. Shockingly, the authority lacks a project closure policy. While other states have progressed, ours lags behind because of inefficiency and lack of will. Rera orders often go unenforced because implementation rests with the revenue department, which fails to act. Despite repeated memorandums, Rera passes the buck. The legislation's intent is solid, but poor execution is hurting homebuyers."Rajagopalan R, convener of the Bengaluru Coalition group, which fights against illegal constructions, said: "The body has been largely ineffective, recovering barely Rs 100 crore of the Rs 1,000 crore ordered from errant builders. With poor transparency and a growing backlog of unregistered projects, buyers are turning to consumer forums and high courts for relief. For many, homebuying is a major life event — delays leave families juggling EMIs and rent, while lopsided three-way contracts favour builders and lenders. The only thing keeping buyers from walking away is the sector's continued bull run."