According to recent data from the Karnataka Real Estate Regulatory Authority (K-RERA), more than 2,600 projects have expired and more than 2,700 have lapsed, putting significant strain on the state's real estate market. Deeply ingrained problems in the industry, especially project delays and developer non-compliance with regulations, are reflected in the increasing number of halted ventures. Thousands of homeowners are experiencing emotional and financial hardship as a result of these failures, and many are unsure of what will happen to their investments.
According to RERA regulations, a project is said to have expired if its registration time concludes without an extension, while a lapsed project is one that is still unfinished without a new approval. Almost 2,632 of the 7,707 registered projects are listed as defaulted, frequently as a result of missing construction deadlines and neglecting to file required quarterly progress reports. Enforcement has been uneven even though regulations require transparency on project status, funding inflows, and expenditures.
In order to collect debts, K-RERA can potentially take developer assets and levy fines of up to 10% of project expenses. Critics counter that developers can continue to break the laws without facing any meaningful repercussions since regulatory enforcement is still too lax. The situation is made more difficult by the absence of a clear project closure policy, which leaves impacted buyers without a safety net.
This carelessness is costing homebuyers, who frequently have to balance rent and EMIs while they wait for their properties. In order to restore trust in Karnataka's housing industry, experts now emphasize how urgently RERA must strengthen its oversight, guarantee harsher sanctions for infractions, and give priority to buyer protection.
© 2023 Rera News. All rights reserved.