Karnataka RERA Takes Action Against Bengaluru Builder Over Khata Delay

Karnataka RERA Pulls Up Bengaluru Builder Over Khata Transfer Delay- Key Highlights:

• Regulatory Action: Karnataka RERA directed a Bengaluru-based builder to transfer khata to the homebuyer within 30 days after failing to do so post-possession.
• Legal Obligation Emphasised: KRERA ruled that khata transfer is a statutory duty under RERA Act, 2016, and cannot be delayed due to financial stress or legal disputes
• Builder’s Defence Rejected: Claims citing land disputes, pandemic-related financial stress, and provision of basic amenities were not accepted by the regulator.
• Compliance Timelines: KRERA ordered completion of all pending flat-related works within 90 days and khata transfer within 30 days.

Karnataka Real Estate Regulatory Authority has issued a notice to a builder based in Bengaluru for not transferring the khata of a residential property to a homebuyer even after handing over possession of the same. This issue has to be resolved within 30 days from the date of the order.

The regulator emphasized their point that the requirements of the law mentioned in Section 10 of the Act – ‘Real Estate (Regulation and Development) Act 2016′ , cannot be delayed due to financial issues or because of any legal disputes. KRERA added that “once the possession of flats or land is given to the promoter, it becomes their duty to get all the requisite clearances in place.”

“Transfer of khata is not a discretionary act. It is a legal obligation that flows from the completion and handover of the project,” the authority noted in its order.

What is khata and why it matters?

A khata is an official property record issued by Bengaluru’s civic body that establishes ownership and is essential for:

• Payment of property tax
• Registration of resale or transfer transactions
• Availing loans and civic services

For apartment projects, developers must first secure bulk khata registration for the entire project before facilitating individual transfers in favour of allottees. KRERA has consistently held that initiating this process is the promoter’s responsibility.

Details of the complaint

Basically, it was an apartment which based on the case was bought in the year 2021 at a cost of 60 lakhs. Moreover, the fact of the matter is that the sale contract for the said apartment was also made the same year. As far as the case details are concerned, the complainant before KRERA through the allottee's petition asserted that he had been given the apartment even though he found the apartment to be unfinished.

Had the buyer of the apartment not got such authorizations, then he would not have been able to consider that such a purchase is lawfully completed.

However, the buyer claimed that without these approvals, the apartment cannot be regarded as legally complete and that such a situation poses many types of danger to him.

Builder cites land dispute, pandemic impact

The developer had denied the claims, stating they were misleading. It had submitted before KRERA that:

• Its issuance is also related to a pending land dispute.
• Also, the buyer was in possession and had entered into the sale deed.
• Basic infrastructure like electricity supply, water supply, parking facilities, sewerage treatment plants, and rainwater harvesting installations had been provided

The promoter also pointed out the economic stress that resulted from the pandemic. He noted that sales in the project had been stagnant, leading to losses.

However, this defense was not accepted by KRERA, as it barred external challenges from impacting the fulfillment of statutory duties.

“Financial difficulties or pending litigation do not absolve the promoter from complying with obligations mandated under law,” the authority said.

KRERA reiterates promoter’s statutory duties

Citing provisions of the RERA Act, KRERA stressed that developers are duty-bound to complete projects strictly in accordance with sanctioned plans and secure all statutory approvals.

“It is the bounden duty of the promoter to obtain completion and occupancy certificates from the competent authority and make them available to allottees,” the order stated.

The regulator further noted that handing over possession without completing these formalities defeats the purpose of regulatory protection extended to homebuyers.

Clear timelines set

• To ensure compliance, KRERA issued specific directions:
• All pending works related to the flat must be completed within 90 days
• The developer must transfer and facilitate khata in the buyer’s name within 30 days

Failure to comply with these directions, the authority warned, could invite further action under the RERA framework.

Real estate experts say the order strengthens homebuyer rights in Bengaluru, where delays in OCs and khata transfers remain common. The decision is expected to encourage greater accountability among developers and provide relief to buyers caught in prolonged post-possession approval delays.