Bengaluru Development Authority is a 'Promoter'; RERA Provisions Apply, Karnataka Appellate Tribunal Upholds KRERA Order
Bengaluru, March 12, 2026: The Karnataka Real Estate Appellate Tribunal dismissed an appeal filed by the Bangalore Development Authority and upheld an order from the Karnataka Real Estate Regulatory Authority that classified BDA as a 'promoter'. KREAT ruled that the authority qualifies as a promoter because it develops and sells plots or buildings to the public and must therefore comply with the provisions of the Real Estate (Regulation and Development) Act, 2016 .
BDA's Arguments Rejected
Earlier, BDA sought exemption from the provisions of the RERA Act, arguing that the BDA Act is a self-contained legal framework repeatedly upheld by the Supreme Court. The planning authority insisted that it cannot be treated as a 'promoter' under Section 2 of RERA, since its role is that of a statutory planning and development body, not a commercial developer .
In its appeal, BDA contended that it is a Planning Authority and therefore does not fall within the definition of the term 'promoter' under Section 2(zk)(iii). The authority also argued that the Nadaprabhu Kempegowda Layout was conceived and land for it was acquired well before the RERA Act, and as such, the scheme does not fall under the purview of the RERA Act .
BDA further submitted that various rules and regulations were framed by the BDA Act, 1976, to regulate its procedures, making it clear that BDA is a statutory authority regulated by its own Act and rules and hence should be excluded from applicability of the provisions of the RERA Act .
Tribunal's Observations
The tribunal rejected BDA's arguments, observing that the definition of 'promoter' under the RERA Act includes development authorities and public bodies that construct buildings or develop plots for sale .
"We are of the considered view that the definition of promoter in RERA Act is an inclusive definition and explicitly includes the Development Authority, and other Public bodies in respect of plots as well as apartments developed by such Authority or body on lands owned by them, or placed at their disposal by the Government, for the purpose of selling all or some of the apartments or plots to the Allottees," the order stated .
The definition applies uniformly to all developers, whether in the private or public sector, with the objective of ensuring accountability and improving transparency across the real estate sector .
Applicability of RERA Provisions
KREAT further noted that in the case of private developers, the relationship between the allottee and the promoter is governed by legally binding agreements specifying project completion timelines and compensation payable in case of delays. Similarly, BDA enters into lease-cum-sale agreements with allottees, and both parties are required to comply with the terms related to possession timelines and other conditions outlined in these agreements .
"These conditions have to be complied with mutually and reciprocally by both the BDA and the allottees," the order said .
"However, insofar as the applicability of RERA enactment is concerned, BDA is equally required to follow all the Rules and Regulations with respect to issues such as registration of all projects with RERA under Section 3 of RERA Act, functions and duties of the Promoter under Section 11(2), 18 of RERA Act," it added .
Final Order
"The appeal filed by BDA under Section 44 of the RERA Act is hereby dismissed at the stage of admission, holding that the provisions of the RERA Act are squarely applicable to it," the order dated March 3 stated .
The tribunal also directed BDA to register its Nadaprabhu Kempegowda Layout project, which has been under development since 2014, and to upload all relevant documents, including layout plans and approvals .