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The Karnataka government plans to establish a special 'Recovery Cell' to address over INR 724 crore in dues from 1,500+ builders defying RERA orders, with INR 710 crore in Bengaluru alone. Led by a special deputy commissioner, the cell will implement RERA orders, treating dues as land revenue arrears and taking coercive actions like attaching properties. This initiative aims to provide relief to homebuyers who have not received property ownership or compensation despite RERA directives. It seeks to strengthen enforcement and ensure justice in the state's real estate sector.
The Karnataka government has recently announced plans to set up a dedicated unit to recover dues from real estate developers. This initiative aims to address builders' non-compliance with regulatory orders regarding homebuyer compensation across the state, with a focus on Bengaluru. Advertisement
The proposed 'Recovery Cell' will be exclusively dedicated to implementing orders issued by the Karnataka Real Estate Regulatory Authority (K-Rera). The move comes as developers have reportedly defied K-Rera orders regarding compensation to homebuyers. This has led to frustration for homebuyers in Bengaluru and other parts of the state who have not received property ownership or compensation despite K-Rera directives.
As of May 31, 2025, approximately INR 724 crore is yet to be recovered from over 1,500 builders across Karnataka. Bengaluru urban alone accounts for INR 710 crore of this amount. The Recovery Cell will be led by a special deputy commissioner and will include tahsildars, headmen, and clerical staff.
These officers will be authorized under Section 40(1) of the Real Estate (Regulation and Development) Act, 2016, and Rule 25 of the Karnataka RERA Rules, 2017. The cell will have the power to treat these dues as arrears of land revenue. This allows it to take coercive actions, such as attaching the properties of defaulting project promoters.
K-Rera has also recommended integrating this cell into the Sakala Mission framework to ensure recovery orders are executed within set timeframes. Homebuyers and forums have welcomed this move, stating the need for dedicated revenue recovery officers and a streamlined mechanism to ensure justice. The establishment of dedicated recovery mechanisms is a step towards strengthening the enforcement power of real estate regulatory authorities.
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