Bengaluru Real Estate: Homebuyers Get Relief as KRERA Orders BDA to Finish a Project, Pay Compensation

Bengaluru, May 6: KRERA has directed BDA to complete the long-delayed Nadaprabhu Kempegowda Layout (NPKL) with full infrastructure within two months and pay ₹22.4 lakh as interest compensation to an allottee. In a separate case, the authority also held that BDA qualifies as a 'promoter' under RERA, subjecting it to the same compliance standards as private developers.

KRERA Orders Completion with Full Infrastructure

KRERA directed BDA to hand over fully serviced plots within two months, ensuring essential infrastructure such as water and electricity connections, drainage systems, roads, and street lighting. The authority ordered ₹22.4 lakh as interest compensation, citing prolonged delays from 2018 to 2025. The complainant had purchased a site in October 2018 and completed payment by February 2019, but even after receiving possession certificate in 2020, the plot lacked basic amenities.

BDA Ruled as 'Promoter' Under RERA

The KRERA tribunal dismissed BDA's appeal and upheld that BDA qualifies as a 'promoter' under RERA. BDA had argued that it operates under a separate statutory framework and should be exempt from RERA provisions. However, the tribunal rejected this, stating that the definition of promoter explicitly includes development authorities and public bodies engaged in real estate development for sale.

What This Means for Homebuyers

BDA must now follow the same compliance standards as private developers, including registration of projects under Section 3 and duties under Sections 11(2) and 18 of the RERA Act. The ruling applies uniformly to all developers, whether public or private, ensuring accountability and transparency across the real estate sector.