Bengaluru Homebuyers Challenge BDA's Attempt to Escape RERA Oversight

Bengaluru homebuyers are strongly opposing the Bengaluru Development Authority's petition to exempt itself from RERA regulations, citing widespread project delays and incomplete amenities in existing housing schemes.

BDA Seeks RERA Exemption

The Bengaluru Development Authority has formally petitioned the Karnataka Real Estate Regulatory Authority (KRERA) seeking exemption from the Real Estate (Regulation and Development) Act, 2016. BDA maintains that as a statutory planning and development body, it does not qualify as a "promoter" under RERA regulations and argues that its operations fall under the BDA Act, 1976, which it describes as a "self-contained code" previously upheld by the Supreme Court.

In justifying its exemption request, BDA cites operational challenges including land acquisition delays, extensive litigation issues, high resource demands, and complexities in subsidizing infrastructure through various housing schemes.

Homebuyers Mount Strong Opposition

Multiple homebuyer forums have submitted written objections to KRERA, challenging BDA's attempt to avoid regulatory oversight. Their concerns center around persistent delays in project completion, with developments like Gunjur Apartments and Kempegowda Layout remaining unfinished despite bookings made several years ago.

Key Issues Raised by Residents

Affected homebuyers have highlighted several critical problems:

Residents report that essential utilities and civic amenities remain incomplete or entirely missing, including lifts, water supply systems, sewage treatment facilities, and electricity connections. Many buyers express frustration that even after waiting 5-6 years, they have not received complete project delivery.

Gunjur Apartments Case Study

The Gunjur Apartments project exemplifies the challenges faced by BDA homebuyers. Despite allotments dating back to 2013 and a completion notice issued in 2015, only approximately 70% of construction has been completed. Units reportedly lack basic amenities including water supply, sewage treatment, and lift installations. Current pricing for a 3-BHK flat in this project stands at around ₹42 lakh.

BDA's Defense Strategy

BDA counters that many projects face delays due to incomplete land acquisition processes, often complicated by court challenges. The authority argues that implementing RERA-style project fund segregation and strict timeline adherence would hinder its ability to deliver affordable housing at scale.

Additionally, BDA emphasizes its role in cross-subsidizing infrastructure development, claiming it requires operational flexibility that strict RERA provisions might limit.

Broader Implications for Real Estate Regulation

Transparency and Accountability Concerns

RERA was specifically designed to ensure responsible real estate project delivery with proper grievance redress mechanisms. Exempting a major government agency like BDA could potentially weaken the protective framework that RERA provides to homebuyers across India.

Precedent Setting Potential

Should BDA receive exemption, other government or quasi-government agencies might seek similar treatment, potentially leaving many homebuyers without the legal protections RERA currently provides. This could significantly impact buyer confidence in government-backed housing projects.

Impact on Affected Homebuyers

Thousands of individuals await possession or completion of amenities in BDA projects, often finding legal recourse slow or ineffective without RERA oversight. The outcome of this case could determine whether these buyers maintain access to regulatory grievance mechanisms or face prolonged uncertainty.

Potential Outcomes and Future Watch Points

KRERA's decision will determine whether to uphold, partially deny, or completely reject BDA's exemption request. If the exemption is granted, BDA projects may avoid RERA registration requirements, potentially limiting homebuyers' access to regulatory protection. Conversely, if denied, BDA must comply with full RERA requirements including project registration, timeline adherence, and statutory disclosures.

Ground conditions in delayed projects like Gunjur and Kempegowda Layout will likely serve as key evidence for KRERA and courts in determining appropriate oversight levels. The case represents a potential landmark decision in establishing whether government housing authorities should maintain equal accountability with private developers under RERA regulations.

The Bottom Line

Bengaluru homebuyers are mounting significant resistance against BDA's RERA exemption attempt, particularly given widespread delays and incomplete deliverables in existing housing schemes. This case before KRERA could establish crucial precedent regarding whether government housing and planning authorities face equal legal accountability and oversight as private developers under RERA framework.

The decision will significantly impact thousands of homebuyers currently waiting for project completion and could reshape the regulatory landscape for government-backed real estate projects in Bengaluru and potentially across India.