KRERA Directs BDA to Pay ₹22 Lakh to Homebuyer for Failing to Provide Basic Infrastructure

The Karnataka Real Estate Regulatory Authority has directed the Bangalore Development Authority to complete the Nadaprabhu Kempegowda Layout project and hand over the property with all essential infrastructure, including water and electricity connections, drainage, roads, and street lighting, within two months. It has also ordered BDA to pay ₹22.46 lakh as interest compensation to the allottee.
KRERA Directs BDA to Pay ₹22 Lakh to Homebuyer for Failing to Provide Basic Infrastructure

Bengaluru, April 28: "Mere handover of possession of property to the allottee is of no use without providing basic facilities such as water and electricity connections, drainage, road and street lights etc. Without these facilities, one cannot use and enjoy his property," KRERA observed.

The Case

The buyer, Mridula Krishnapur, purchased a site in Sector B of Nadaprabhu Kempegowda Layout. The site was allotted on October 11, 2018, and full sale consideration of ₹96.87 lakh was paid by February 5, 2019. Possession certificate was issued on June 16, 2020.

However, even after almost nine years since allotment, the site continues to lack basic civic infrastructure including water supply, proper approach roads, drainage, street lighting, and site identification boards.

KRERA's Order

  • Complete project with all amenities: within 60 days

  • Interest compensation: ₹22,46,177 (calculated at SBI MCLR+2% from May 24, 2018 to December 21, 2025)

  • Additional interest: continues until pending infrastructure is completed

Authority's Observation

"In general, to have his own cozy house is everyone's dream. To fulfil that dream one would take risk of investing all his lifetime savings and raise loans... That being so, the developer who promises to fulfil dream of owning the house shall conduct himself in equally responsible manner."

Under Section 18 of the RERA Act, 2016, KRERA held BDA liable, stating that possession without completion of core amenities cannot be treated as compliance with legal obligations.

Related Complaints

In related complaints concerning the same project, KRERA also granted compensation of ₹8.49 lakh and ₹22.46 lakh to other allottees.