Karnataka Builders Owe Rs 667 Crore; RERA Struggles to Enforce Refunds

Dated on: Monday 23rd June 2025

Builders in Karnataka owe homebuyers over Rs 667 crore in penalties ordered by RERA, but only around Rs 91 crore has been recovered so far. Despite nearly 1,660 refund orders totaling Rs 758 crore issued by the end of 2024, enforcement has been poor. Thousands of projects are delayed or non-compliant, and recovery certificates sent to revenue officers remain largely unexecuted. Experts and homebuyers are calling for stronger enforcement powers for RERA, including independent authority to recover dues and attach properties, to ensure justice and accountability in the real estate sector.