2024 KRERA Orders Key Directives that Impact Bengaluru’s Real Estate
The Karnataka Real Estate Regulatory Authority (KRERA) has continued to make its mark on the state’s real estate sector, issuing pivotal orders in 2024 that address buyer concerns, improve accountability, and reshape the property market, especially in Bengaluru. These decisions, which range from empowering buyers to complete unfinished projects to imposing penalties on developers for delayed handovers, have ensured that the voice of the buyer is now being heard louder than ever before. As the real estate sector continues to evolve, KRERA’s 2024 orders reflect a greater focus on consumer protection and transparency.
One of the most notable rulings came in May, when KRERA directed Mahendra Homes Pvt Ltd, the developer of the Mahendra Aarna project in Anekal, south Bengaluru, to hand over the possession of common areas to the homebuyers’ association. This decision was in line with Section 17 of the Real Estate (Regulation and Development) Act, which mandates developers to transfer possession of common facilities to the residents within three months of obtaining the occupancy certificate. The move not only aligns with the provisions of RERA but also empowers residents to manage their own spaces, enhancing transparency and accountability in property management. By granting the buyers the right to manage and maintain the common areas, KRERA is fostering a stronger sense of community ownership and involvement.
In another significant order, KRERA allowed homebuyers of a luxury villa project in Anekal, Bengaluru, to take over the unfinished project. This was a particularly crucial decision, as the project had been stalled for over a decade due to developer LGCL Urban Homes LLP’s inability to complete the work. KRERA’s intervention, under Section 8 of the RERA Act, allowed the resident welfare society to complete the villas, ensuring that 73 villas and six units for the economically weaker section could be finished. Similarly, an order was passed in May 2024, where KRERA instructed an association of homeowners to take charge of a delayed project by Commune Properties Pvt Ltd and financier Anand Rathi Global Finance Ltd. The move also involved the recovery of ₹4.3 crore from the sale of mortgaged apartments to fund the completion of the project. These actions not only demonstrate KRERA’s commitment to protecting homebuyers but also reflect its proactive approach to resolving long-standing grievances in Bengaluru’s property market.
Another noteworthy order came in January 2024, when KRERA instructed L&T Realty to transfer the funds collected as pre-maintenance charges and common area payments for the L&T Realty Raintree Boulevard project to the residents’ welfare association (RWA). This decision is vital for ensuring that the funds are properly utilised for the maintenance and upkeep of common areas, fostering long-term sustainability in residential projects. The 25-acre project, consisting of over 2,200 flats, is home to some of the city’s most expensive residences, costing upwards of ₹4 crore. The fact that KRERA has prioritised the transfer of these funds underlines its focus on consumer interests, especially for high-end properties, where transparency and maintenance quality are paramount.
KRERA’s 2024 Orders and Sustainability in Bengaluru’s Real Estate
From a sustainability perspective, KRERA’s 2024 decisions also align with the growing demand for responsible, community-driven real estate development. By directing developers to hand over common areas to homebuyers, KRERA is effectively encouraging the adoption of sustainable property management practices, where residents play an active role in the upkeep of their environments. This shift is crucial as it allows for more efficient management of resources, ensuring long-term viability and reduced environmental impact. Furthermore, the push for completing delayed projects under the supervision of resident associations ensures that construction standards are upheld, and sustainable materials and technologies can be incorporated into the completion phase.
The orders also have broader civic implications for Bengaluru. With the city grappling with issues like rapid urbanisation and infrastructure strain, KRERA’s decisions are steering developers towards a more transparent and accountable model of construction and delivery. These interventions help restore consumer faith in the real estate market, encouraging further investments and contributing to the growth of the city’s infrastructure in a more balanced and responsible manner. Additionally, by enforcing penalties and facilitating the completion of stalled projects, KRERA is playing a pivotal role in alleviating housing shortages, a critical issue for Bengaluru’s expanding population.
The Road Ahead: KRERA’s Continuing Influence on Bengaluru’s Real Estate Market
Despite the challenges faced by the real estate sector, including delayed projects and developer misconduct, KRERA’s 2024 orders signify a turning point in ensuring greater transparency and efficiency in Bengaluru’s property market. The authority’s proactive stance has brought hope to thousands of homebuyers who had previously faced delays or poor project quality. Furthermore, with a growing emphasis on sustainability and community participation, KRERA is shaping Bengaluru’s real estate landscape into one that is both responsible and future-ready.
However, challenges remain in the form of ongoing recovery efforts. As of August 2024, ₹707 crore remains to be recovered across 1,539 cases, with only ₹79.94 crore collected so far. The success of KRERA’s measures will depend on continued enforcement and greater cooperation from developers and financiers. Nevertheless, these orders mark a significant step forward in the evolution of Bengaluru’s real estate sector, creating a more secure, transparent, and sustainable environment for both buyers and developers. As the real estate sector adapts to these changes, the focus on consumer protection and sustainability is expected to set a new benchmark for the industry, with KRERA at the helm of this transformation.
