The Karnataka Real Estate Regulatory Authority (KRERA) has directed the Bangalore Development Authority (BDA) to complete the Nadaprabhu Kempegowda Layout (NPKL) 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 ₹22.4 lakh to the allottee as interest compensation for the delay.
“The respondent is hereby directed to complete the project “Formation of Nadaprabhu Kempegowda Layout” situated at Survey No. 18/2 Kengeri Hobli. Bengaluru South, Bengaluru Urban, by providing entire amenities as promised and to handover possession of site no.4469 in the said project to the complainant within 60 days from the date of this order,” it said in its order.
“The respondent is hereby to pay a sum of Rs.22,46,177/- (Twenty-Two Lakh Forty-Six Thousand One Hundred and Seventy-Seven Only) to the Complainant towards interest on delay period calculated at SBI MCLR+2% from 24/05/2018 till 21/12/2025 within 60 days from the date of this order,” it said.
The Authority noted that many buyers invest their lifetime savings and borrow heavily to own a home or plot, and any delay in project delivery can force them into financial and legal hardship.
“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 in terms of lakhs or crores which would take away rest of his life in repaying the same. That being so, the developer who promises to fulfil dream of owning the house shall conduct himself in equally responsible manner,” it noted.
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The case
The buyer, Mridula Krishnapur, a resident of Jayanagar, had purchased a site in Sector B of Nadaprabhu Kempegowda Layout. The site was allotted on October 11, 2018, and the full sale consideration of ₹96.87 lakh was paid by February 5, 2019. A lease-cum-sale deed was executed on June 10, 2020, followed by a possession certificate on June 16, 2020.
“However, even after almost nine years since allotment, the site continues to lack basic civic infrastructure, including water supply connection, proper approach roads, drainage facility, street lighting, site number/identification boards. Due to the absence of these essential facilities, it is extremely difficult to even locate the site, and they are unable to proceed with construction or make use of the property,” noted.
The buyer approached the authority alleging that the site was not fit for use as the project lacked water supply, sewage lines, electricity, internal roads, streetlights and parks.
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The order
Under Section 31 of the Real Estate (Regulation and Development) Act, 2016, KRERA held BDA liable under Section 18, stating that possession without completion of core amenities cannot be treated as compliance with legal obligations.
Section 18 of the RERA Act, 2016, guarantees homebuyer rights if a promoter fails to deliver possession, violates the sales agreement, or discontinues business. It allows buyers to either withdraw and receive a full refund with interest or claim interest for every month of delay until possession.
“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,” it said.
The authority ordered the BDA to pay delayed interest compensation for the period from 2018 to 2025. It further said additional interest would continue until the pending infrastructure is completed.
“Now, has failed to deliver the site after acquiring the agricultural land from the farmers for the development of the layout and after collecting the entire sale consideration from the direct allottees. Unable to construct the house, troubled by housing loan, fearing that housing loan will be penalised for not constructing the house,” the order said.
In related complaints concerning the same project, KRERA also granted compensation of ₹8.49 lakh and ₹22.46 lakh to other allottees, while directing completion of unfinished works.
A list of queries has been sent to KRERA and BDA. The story will be updated if a response is received.