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Real Estate

Karnataka RERA Orders BDA to Pay ₹56 Lakh for Delay in Kempegowda Layout Amenities

  • by- Zaid
  • Apr 21, 2026
The Karnataka Real Estate Regulatory Authority has directed the Bangalore Development Authority to pay approximately ₹56 lakh as interest compensation to a homebuyer for delays in providing basic infrastructure at the Nadaprabhu Kempegowda Layout in Bengaluru.
Karnataka RERA Orders BDA to Pay ₹56 Lakh for Delay in Kempegowda Layout Amenities

Bengaluru, April 21: The order relates to a complaint filed by an allottee who purchased a residential site in the layout and received possession in 2020 without essential civic amenities.

Amenities Not Provided

  • Roads

  • Water supply

  • Sewerage

  • Electricity

  • Street lighting

Key Findings

  • K-RERA observed that handing over possession without basic amenities does not fulfil obligations under the RERA Act

  • The allottee was effectively unable to utilise the property despite ownership being transferred

  • BDA qualifies as a promoter under the RERA framework and is liable for deficiencies in service

Compensation

  • Interest compensation awarded: ~₹56 lakh (for period June 2020 to early 2026)

  • Additional interest: Will continue to accrue until pending infrastructure works are completed

Authority's Observation

Merely executing sale deeds and issuing possession certificates does not absolve developers of their responsibility to deliver fully serviced plots. Access to basic amenities is integral to the usability of a property and forms a core component of project delivery under the regulatory framework.

Significance

The ruling reinforces accountability of public authorities in real estate projects and underscores that possession without infrastructure does not meet statutory obligations. It also highlights that statutory bodies such as BDA fall within the definition of promoter under the RERA Act.