Bengaluru’s real estate sector continues to see significant developments through rulings by the Karnataka Real Estate Regulatory Authority (K-RERA) and the Karnataka Real Estate Appellate Tribunal (K-REAT). These decisions provide clarity on buyer rights regarding possession delays, the definition of promoters, and compliance obligations, balancing protections for homebuyers with developer responsibilities under the Real Estate (Regulation and Development) Act, 2016.

Appellate Tribunal Rules No Interest on Delay After Occupancy Certificate Issuance

In a landmark ruling, the Karnataka Real Estate Appellate Tribunal has clarified that homebuyers cannot claim interest for possession delays once an Occupancy Certificate (OC) is issued. This decision came in a case involving a flat in the Maple Tower of the Park West project in JP Nagar, Bengaluru.

The original agreement promised possession by December 2019 (later extended to June 2020 due to the COVID-19 pandemic), with the builder applying for the OC in August 2022. Karnataka RERA had previously ordered the developer, Relationship Properties Pvt Ltd, to pay interest for the delay. The developer appealed, and the tribunal overturned the order.

The ruling emphasizes that the issuance of the OC marks project completion for possession purposes. Buyers may still pursue claims for construction defects or quality issues separately, but interest compensation for delay ends once the OC is granted. This draws a clear line between possession rights and ongoing defect rectification, likely influencing future disputes in Bengaluru’s real estate market.

Karnataka RERA Holds Landowners as Promoters, Orders Rs 6 Lakh Compensation

In a separate case highlighting joint responsibilities, Karnataka RERA ruled that landowners qualify as “promoters” under Section 2(zk) of the RERA Act, even if not directly involved in construction.

The dispute involved a completed apartment project where the builder obtained the OC, but the landowner could not sign sale agreements or hand over possession due to a pending partition dispute among family members. Homebuyers approached RERA seeking interest for the delay.

On October 30, 2025, the authority ordered the landowner to pay approximately Rs 6 lakh (around Rs 6.5 lakh as per reports) as interest compensation to the affected buyers. The decision reinforces that landowners sharing in project benefits or revenue can be held liable alongside developers, ensuring greater accountability in joint development arrangements common in Karnataka.

Lodha’s G Corp Homes to Challenge Appellate Tribunal Order on Bengaluru Project

Adding to ongoing regulatory scrutiny, G Corp Homes Private Limited — a wholly owned subsidiary of Lodha Developers (acquired in June 2022) — has announced plans to challenge an order from the Karnataka Real Estate Appellate Tribunal.

The tribunal directed Karnataka RERA to seek further compliance from G Corp regarding a Bengaluru project involving remaining phases. Earlier, RERA authorities had upheld G Corp’s compliance and dismissed a related complaint. The company remains confident of a favorable outcome and intends to contest the directive in an appropriate forum to safeguard project timelines and regulatory standing.

These rulings reflect Karnataka RERA’s evolving approach to enforcing timely delivery, transparent promoter definitions, and compliance, while appellate interventions provide checks on initial orders. Homebuyers and developers alike should stay updated on project-specific OCs, agreements, and registrations to navigate these protections effectively. As Bengaluru’s property market grows, such decisions aim to foster trust and reduce prolonged disputes.

  K-REAT, K-RERA, Residential Properties