Karnataka RERA Orders Builder to Pay ₹10 Lakh to Homebuyers Over Missing Amenities

• Four homebuyers were awarded ₹10 lakh in compensation.
• Several promised facilities, including an open gym and badminton court, were missing.
• The builder must pay within 60 days or face interest on the compensation.

Karnataka: The Karnataka Real Estate Regulatory Authority (K-RERA) has ordered a Bengaluru-based builder to pay ₹10 lakh in compensation to four homebuyers after several amenities advertised as part of their residential project were found incomplete or not constructed. The order was issued on September 4, 2026, following a dispute over facilities promised to buyers in the project at Jala Hobli, Bengaluru North.

The case was filed by four homebuyers from R.T. Nagar — Uma Devi, P Sushma, Pavan G K Reddy and Gangapalli Kullayi Reddy. They had purchased flats in the project in 2022 for around ₹2.08 crore each. According to their complaint, the project’s promotional material and sale documents promised several lifestyle and recreational facilities, but many of them were not delivered. The matter became particularly significant after a joint inspection in May 2026 produced photographic evidence showing the condition of the project.

A joint inspection conducted on May 14, 2026, pursuant to the RERA proceedings, found several facilities either incomplete or absent. These included an open gym, badminton and tennis courts, children’s play area, clubhouse facilities, swimming pool, spa, guest rooms and indoor games area.

The inspection also highlighted infrastructure-related concerns, including incomplete sections of the compound wall, issues involving the borewell, sewage collection facilities, STP and WTP infrastructure, and an entrance gate. Photographs taken during the inspection were placed before the authority. Representatives of the builder were also present during the inspection, although they did not sign the inspection report.

K-RERA noted that some facilities, including the children’s play area, park and yoga deck, had subsequently been completed. However, several other promised facilities remained unfinished.

The authority held that a developer cannot simply rely on the execution of a sale deed to argue that its obligations have been fulfilled. Under Section 12 of the RERA Act, promoters are responsible for the accuracy of representations made through advertisements and project prospectuses.

The authority observed that buyers purchase a home based not only on the physical apartment but also on the facilities and amenities promised as part of the project. It therefore found that failing to provide advertised amenities amounted to a failure to honour those representations.

However, K-RERA did not hold the developer responsible for the incomplete clubhouse at this stage. The sale agreement reportedly required the clubhouse to be completed within 18 months from the site-release order issued by BIAAPA. Since BIAAPA had issued only a partial release order and the final order had not yet been issued, the authority concluded that the builder could not yet be held liable for the clubhouse’s non-completion.

The ruling is important for homebuyers because it reinforces the principle that amenities shown in brochures and project documents can form an important part of a developer’s obligations. Buyers who find that major facilities promised at the time of purchase have not been delivered may have grounds to approach the appropriate RERA authority, depending on the facts and documents available in their case.

Legal expert Asha Kiran Sharma, Partner at King Stubb and Kasiva, said the order demonstrates that developers cannot rely solely on contractual paperwork when physical evidence establishes that promised facilities have not been delivered. The decision also underlines the importance of retaining brochures, advertisements, allotment letters, agreements, photographs and other project-related records.

K-RERA has directed the builder to pay the ₹10 lakh compensation within 60 days. If the amount is not paid within the prescribed period, interest will become payable according to the order.

For other homebuyers facing similar issues, the case highlights the value of documenting incomplete amenities and preserving the original project advertisements and contractual documents. Buyers should also verify which facilities are actually covered by the agreement and whether construction or regulatory approvals are still pending before filing a complaint.

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