K-RERA Penalises BDA for Site Registration Failure
The Karnataka Real Estate Regulatory Authority (K-RERA) has recently imposed a Rs 12.5 lakh penalty on the Bangalore Development Authority (BDA) for the significant delay in handing over a site to a senior citizen. This ruling underscores the growing emphasis on accountability and transparency in Bengaluru’s real estate sector, as the city grapples with a booming property market amid growing regulatory concerns.
On February 13, 2025, K-RERA Chairman Rakesh Singh and Member G Ravindranadha Reddy issued a clear directive to the BDA, ordering the authority to compensate Suthanthiraraj, a retired chartered accountant from Vidyaranyapura, Bengaluru. The issue pertains to a 60×40 square feet site that the senior citizen had purchased in 2006 in the Arkavathy Layout’s 18th Block, an area originally developed by the BDA in the early 2000s. Despite completing the purchase and registering the sale deed in 2017, Suthanthiraraj faced numerous obstacles in accessing the site due to continued delays and disputes with land losers who were yet to receive compensation.
The BDA’s failure to register the Arkavathy Layout under the provisions of the RERA Act was also pointed out by the K-RERA in its ruling. This decision comes after a series of complaints and a failure by the BDA to adhere to earlier instructions to register the project by November 2023. According to sources, the layout had been planned over two decades ago with 8,813 sites spread across 16 villages in Bengaluru East and Yelahanka, but many of these sites still lack basic amenities such as water, electricity, and proper road access, severely impacting residents. In an emotional statement to the media, Suthanthiraraj shared his frustration, recalling the repeated attempts to visit his plot, only to be stopped by the land losers who claimed that they had not been compensated.
“The issue has now been settled, but it has taken almost two decades to get to this point,” he said. “The 18th Block is the most neglected part of Arkavathy Layout. Basic amenities such as water, power supply, and asphalted roads are sorely lacking.” The Arkavathy Layout’s ongoing issues are a stark reminder of the challenges facing many property buyers in Bengaluru. While the city is known for its rapid urbanisation and real estate boom, inadequate infrastructure and delayed developments are starting to draw attention from regulatory bodies and consumers alike. K-RERA’s ruling emphasises the necessity of registering projects under the RERA Act and meeting deadlines for delivery, offering hope that the regulatory framework can provide some redress for frustrated homebuyers.
In response to K-RERA’s ruling, the BDA has been instructed to expedite the process of compensating Suthanthiraraj and to immediately comply with the earlier order to register the layout under the RERA Act. The BDA is yet to issue a statement regarding the ruling, but industry insiders suggest that this ruling could have significant implications for how development authorities in Bengaluru handle project delays and disputes in the future.
The Arkavathy Layout saga highlights a broader issue within Bengaluru’s urban development landscape. As the city continues to expand rapidly, the pressure on both developers and regulatory bodies is increasing. The lack of infrastructure and timely delivery of projects is a persistent issue, and the K-RERA ruling may prompt further scrutiny of development authorities in Karnataka. As the real estate sector evolves, it is becoming increasingly crucial for stakeholders – from government bodies to developers and consumers – to prioritise transparency, accountability, and efficiency in creating sustainable urban spaces. The Arkavathy case serves as a timely reminder of the importance of equitable development, with a focus on environmental sustainability, gender-neutral planning, and accessible infrastructure for all citizens.
With Bengaluru’s rapid growth, the need for a robust regulatory framework is more evident than ever. As the city aims to become an urban hub of international stature, addressing these challenges head-on is essential for ensuring that its growth remains both sustainable and equitable.
