Karnataka RERA has ordered a builder to pay Rs 10 lakh in compensation to four homebuyers after a joint inspection found that several amenities promised in the project’s brochure and sale documents had not been delivered in a housing complex at Jala Hobli in Bengaluru North.
The order, issued on September 4, 2026, followed a complaint by Uma Devi, P Sushma, Pavan G K Reddy and Gangapalli Kullayi Reddy, who are from R T Nagar. The buyers had purchased flats in the project for Rs 2.08 crore each and executed their sale deeds in 2022.
The amenities listed in the project documents included a senior citizen park, open gym, spa, open amphitheatre, badminton court, tennis court, children’s play area and clubhouse facilities. According to the Karnataka RERA findings reported by Economic Times, several of these facilities were either incomplete or had not been constructed.
The authority relied on a joint inspection conducted on May 14, 2026, during which photographs were taken of the project. Representatives of the builder, identified in the report as Manjula and Keerthi, were present during the inspection, although they did not sign the inspection report. Karnataka RERA noted that the photographs showed their presence at the premises.
The inspection material recorded deficiencies including an incomplete compound wall, unfinished SBR tanks, an incomplete clubhouse, a sewage collection tank, an STP and WTP plant room, an unfinished entrance gate and open STP chambers. The report also noted that the water treatment system was not using salt or brine. Maintenance issues involving the STP and WTP had allegedly resulted in bad odour. The authority also recorded that a borewell had been dug in a private area.
The inspection photographs showed that the children’s play area, park and yoga deck had been completed. However, the report found that the clubhouse was still missing facilities including a pool, spa, guest rooms and an indoor games area. The promised badminton court, tennis court and open gym were also among the facilities found to be absent.
Karnataka RERA said the builder had displayed the promised amenities in the brochure, allotment letters and agreements. It held that failure to provide them amounted to misrepresentation, even if the failure was unintentional. Referring to Section 12 of the Real Estate (Regulation and Development) Act, the authority said a promoter is responsible for the accuracy of representations made in an advertisement or prospectus.
The authority also observed that executing a sale deed does not by itself establish that a project has been completed when agreed amenities and facilities remain outstanding. “Mere execution of a sale deed in favour of the allottee is not sufficient without completion of the project by providing all amenities /facilities,” the order stated.
However, Karnataka RERA did not hold the builder responsible at this stage for delivering a fully completed clubhouse. Clause 12.1 of the sale agreement required the clubhouse to be completed within 18 months of the site release order from BIAAPA. Since BIAAPA had issued only a partial release order and had not released its final order, the authority held that the builder could not yet be held liable for the complete clubhouse obligation on that ground.
The builder has been directed to pay the Rs 10 lakh compensation within 60 days. If the amount is not paid within that period, interest will become payable on the compensation, according to the order.
