Bengaluru’s real estate sector saw regulatory intervention this week as the Karnataka Real Estate Regulatory Authority (KRERA) directed a local developer to transfer khata a formal property ownership record to a homebuyer within 30 days. The order follows complaints that the builder had handed over possession of the flat but failed to complete the statutory documentation, raising concerns about procedural compliance and homebuyer rights.
A khata is an official civic record necessary for paying property taxes, securing municipal approvals, and conducting legal property transactions. For newly constructed apartments, bulk khata registration by the developer is a prerequisite, after which individual allottees must formalise the transfer into their names. Delays in this process can complicate ownership rights and restrict access to municipal services, including property tax registration and occupancy validation. The case concerns a Rs 60 lakh apartment booked in 2021. According to the complainant, despite possession being delivered, the developer had not obtained an occupancy certificate or initiated khata registration. The builder argued that the delay was tied to a longstanding land dispute and cited financial pressures, worsened during the pandemic, as a key challenge. The developer also highlighted infrastructure provisions already completed, including individual electricity and water connections, car parking, a sewage treatment plant, and rainwater harvesting facilities. KRERA, however, rejected these claims, emphasising that statutory obligations under the Real Estate (Regulation and Development) Act cannot be waived due to financial distress or legal complications. Citing Section 14 of the RERA Act, the authority reaffirmed that developers are legally bound to complete projects as per sanctioned plans and secure requisite approvals including occupancy certificates before handing over possession.
The regulator noted that developers must ensure these approvals are made available to allottees individually or collectively through associations, reinforcing accountability and transparency in project delivery. In its latest directive, KRERA ordered the builder to complete all pending works related to the flat within 90 days and mandated the khata transfer within 30 days from the date of the order. Industry experts note that such enforcement reflects a growing emphasis on protecting homebuyers in Karnataka, where rapid urban expansion and rising residential projects have sometimes led to procedural bottlenecks. By setting firm timelines, regulators aim to strengthen legal compliance, improve market transparency, and protect citizens’ rights in property transactions. Urban planners and legal analysts suggest that cases like this could influence broader practices in Bengaluru’s residential sector, particularly in mid-sized and high-density developments where bulk khata registration often lags behind possession. Ensuring timely property documentation is increasingly seen as critical not only for individual homebuyers but also for sustainable urban governance and efficient municipal revenue collection.
KRERA’s order underscores the regulator’s commitment to enforcing deadlines, improving homebuyer confidence, and ensuring that real estate development in Bengaluru adheres to statutory norms. For the city’s expanding residential market, this reinforces the importance of due diligence and legal compliance, especially in post-pandemic projects navigating ownership transfers and municipal approvals.
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Bengaluru KRERA Orders Builder Khata Transfer Within Month
