TV
Thousands of homebuyers who invested in Karnataka’s property market are facing indefinite delays as more than 5,000 residential projects remain stuck in various stages of non-completion.
According to official data, over 2,600 projects have missed their deadlines and failed to obtain valid extensions, while another 2,700-plus have been marked as lapsed or expired. This has left a significant number of buyers unable to take possession of their homes, despite years of waiting and ongoing financial commitments.
Missed Deadlines and Uncertain Futures
A report from The Hindustan Times, the issue is widespread, with Bengaluru alone accounting for over 1,300 of these stalled projects. Buyers say they have received no construction updates, while some websites and official communication channels of builders have gone silent altogether.
The lack of timely possession has forced many homebuyers to continue paying both EMIs and rent, while others are struggling with the uncertainty of legal disputes, incomplete documentation, or projects being declared invalid due to non-compliance.
Why Projects Are Stalled
Real estate projects are considered expired when developers fail to seek a renewal after the registration period ends. They are labelled lapsed when the project remains incomplete and no extension has been approved.
In both cases, the projects are stripped of valid registration under regulatory rules, exposing builders to penalties and possible legal action.
In Karnataka alone, out of 7,707 registered real estate projects, 2,632 builders have defaulted on their timelines. Despite the provision to apply for a one-year extension, many developers failed to do so within the stipulated timeframe.
Poor Enforcement, Limited Relief
Under the Real Estate (Regulation and Development) Act, developers must upload project progress reports every quarter, detailing construction updates, fund usage, and timelines. However, in several stalled cases, these mandatory disclosures have stopped altogether, leaving buyers without any visibility on the status of their investments.
The Karnataka Real Estate Regulatory Authority (KRERA), tasked with monitoring and regulating the sector, has penalised multiple projects for delays and non-compliance. But enforcement has been slow.
Despite orders worth hundreds of crores against defaulting builders, only a fraction has been recovered so far. For affected homebuyers, the path forward remains unclear, and the wait for a promised home continues indefinitely.
