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RERA and its impact on apartment handovers in Bengaluru

Buying a home is one of the most significant investments a family makes. But in Bengaluru, many apartment owners have faced a common nightmare: delayed handovers, incomplete projects, and disputes with builders. To address these issues, the Real Estate (Regulation and Development) Act, 2016, better known as RERA, was introduced across India, including Karnataka.

RERA has transformed the real estate landscape, creating a more transparent, accountable system for buyers and developers. For Resident Welfare Associations (RWAs), understanding RERA is crucial because it directly impacts how and when a project is handed over, the quality of construction, and the legal recourse available in case of disputes.

What is RERA?

RERA was brought in to regulate India’s real estate sector, which had long been plagued by:

  • Delayed projects where homebuyers waited years for possession.
  • Unregistered or illegal layouts can lead to ownership issues later.
  • Misleading advertisements and false promises from developers.
  • Poor construction quality with no accountability.

RERA’s primary objectives are:

  • To ensure the timely completion and delivery of residential projects.
  • To bring transparency in project details and approvals.
  • To protect buyers’ interests by imposing strict penalties on errant builders.
  • To create a real estate regulatory authority where buyers can seek quick redressal.

You can read the full Act here: Real Estate (Regulation and Development) Act, 2016 (India Code PDF)

How does RERA work in Karnataka?

In Karnataka, all real estate projects above 500 sq m. or with more than 8 apartments must be registered with the Karnataka Real Estate Regulatory Authority (KRERA). Builders are required to:

  • Upload complete project details on the K-RERA portal, including layout plans, approvals, construction timelines, and past projects.
  • Maintain 70% of buyers’ funds in a separate escrow account, ensuring the money is only used for that project.
  • Provide quarterly progress reports to keep buyers updated.
  • Deliver the project as per the registered deadline, or face penalties and potential imprisonment.

This data is publicly accessible, allowing RWAs and buyers to verify the builder’s credibility before purchasing or taking possession.

Impact of RERA on apartment handovers in Bengaluru

RERA has significantly changed how builders handle handovers, benefiting both individual buyers and RWAs:

1. Improved timelines

Builders are now legally bound to deliver projects by the promised date or face penalties. This has reduced the rampant delays that plagued Bengaluru’s real estate sector.
Example: In 2024, a KRERA ruling forced a well-known developer in Whitefield to compensate buyers for a two-year delay, setting a strong precedent for other projects.

2. Mandatory occupancy certificates (OC)

Under RERA, no handover can legally happen without an Occupancy Certificate, ensuring the building is fit for residents. Earlier, many RWAs were forced to manage societies without essential infrastructure like water or electricity connections due to incomplete projects.

3. Quality assurance and defect liability

Builders are responsible for fixing any structural defects for up to 5 years after handover, at no extra cost to residents. This provision has significantly improved post-handover maintenance quality.

4. Financial Protection for Buyers

With 70% of funds locked in escrow accounts, developers can’t divert buyer money to new projects, ensuring better financial discipline and fewer stalled constructions.

5. Transparent handover process

RERA requires a registered sale agreement, proper documentation, and transfer of common areas to RWAs. This eliminates earlier ambiguities where builders would delay forming associations or keep control of amenities for years.

The role of RWAs in RERA-driven handovers

While RERA has improved timelines and accountability, RWAs must actively participate in the handover process:

  • Track builder registration: Ensure your project is registered on the K-RERA portal. If not, file a complaint.
  • Verify project details: Check the approved plans, promised amenities, and deadlines listed online.
  • Demand proper documentation: At handover, collect all legal documents, including OC, Declaration, Deed of Apartment, and NOCs from utility providers.
  • Monitor defect rectifications: If issues arise post-handover, RWAs can jointly raise complaints under RERA’s defect liability clause.
  • Escalate disputes promptly: KRERA offers an online complaint mechanism where RWAs can file cases against builders for non-compliance or delays.

Key challenges that still exist

Despite RERA’s positive impact, certain challenges persist:

  • Builders delaying RWA formation: Some developers try to retain control over amenities for longer periods.
  • Incomplete handovers despite OC: In some projects, promised amenities (like clubhouses) are delayed even after possession.
  • Limited awareness: Many RWAs are unaware of their rights under RERA and fail to take timely action against violations.

For instance, a 2025 report by Citizen Matters highlighted that over 40% of RWAs in Bengaluru had pending complaints with KRERA about delayed common area handovers despite residents moving in.

By understanding RERA and leveraging its provisions, RWAs can ensure a smoother, dispute-free handover process, protecting every resident’s investment and creating a well-managed community from day one.