Even after paying Rs 40 lakh and taking possession of his apartment on February 25, 2017, Mr Jagannathan from Arasinakunte, Bengaluru rural, hasn't been able to enjoy amenities like Cauvery water, BESCOM electricity meters, DG generator power supply and others as promised by the builder. To make matters worse, the builder still hasn't transferred the common facilities to the homeowners' association.
Mr Jagannathan claims the builder assured him that Cauvery water will be provided for all apartments in the complex and even collected a deposit of Rs 14,895. However, six years later, the promise remains unfulfilled. Additionally, the builder had promised two separate pipelines for borewell and treated water, but failed to install a separate overhead tank for storing Cauvery water.
The builder is yet to start any process for forming the apartment owners association and transferring the common areas to the homeowners. Mr Jagannathan suspects that the builder might be misappropriating funds, as he has not given any audited balance sheet or books of accounts or receipts since 2017.
Mr Jagannathan further alleged that the builder has disconnected the DG generator backup power supply to his apartment, causing him severe hardship during BESCOM outages because, as a senior citizen, he depended on the refrigerator to preserve medicines.
Thus, feeling aggrieved,Mr Jagannathan appealed to Karnataka RERA. On June 3, 2026, he partly won the case in Karnataka RERA.
Also read: Bengaluru property owners alert! Can you get mutation done without a Khata? Here’s what the law says
Why did the homebuyer win the case?
Advocate Rajeev K Jha, Founder & Director, Sarve Permits & Legal Advisory said to ET Wealth Online: In a significant victory for homebuyers, the Karnataka Real Estate Regulatory Authority (K-RERA) has partly allowed the complaint of the flat owner against the builder, and reaffirmed that a builder's obligations do not end merely by handing over possession.
Jha says that the K-RERA Authority held that the promoter remains legally bound to provide all promised amenities, restore essential services, and transfer project-related assets and accounts to the duly authorized Association of Allottees. Relying on the consumer-centric objectives of the RERA Act and judicial precedents, K-RERA recognized that possession without functional amenities cannot be treated as complete compliance with the developer's contractual and statutory obligations.
Accordingly, K-RERA directed the builder to restore DG power supply, complete the assured amenities, and within 90 days transfer the land khata, BESCOM and water meters, corpus fund, escrow balance, and maintenance accounts to the authorized association.
Jha says: "This order reinforces that developers remain accountable for fulfilling promises made to homebuyers and strengthens the rights of apartment owners to demand transparency, proper handover, and full compliance with the RERA Act."
Karnataka RERA order and discussion
A summary of the K-RERA judgement is as follows:
Supreme Court set precedent that RERA has retroactive nature
K-RERA said that in the landmark case of Newtech Promoters and Developers v. State of UP, the Supreme Court established the retroactive standing to protect homebuyers and ensure developers fulfil past promises. Thus K-RERA said that in view of this observation, the RERA Act is retroactive in nature and ensures the protection of homebuyers and makes sure that developers fulfil the promises agreed to in the sale agreement.
Homebuyer deserves to get all completed amenities
K-RERA said that the amenities provided and extra amenities and facilities in the project does not absolve the obligations and responsibilities of the builder to provide and complete all the amenities promised in the prospectus. On this ground, Mr Jagannathan is entitled to the relief of completion of assured amenities in functional conditions and a refund of the corpus fund.
Karnataka RERA said: "Without providing common facilities and amenities, offering possession by promoter does not amount to valid possession. The developer remains accountable for providing the amenities and liable for structural defects in workmanship and quality."
Builder must keep the collected funds in a trust and enable the formation of an association or society of homebuyers
Karnataka RERA said that the core legal mandate under Section 11(4) (e) and (g) and 17 of RERA Act, is that the builder must enable the formation of an association or society of the allottees under the laws applicable and facilitate the formation of an association and transfer the physical control of the common areas along with all title documents and maintenance/sinking fund. The collected funds are held by the builder in trust and can't be used for construction or personal use.
"The obligation to transfer common areas and sinking funds is a continuance cause of action, failure attracts legal remedy under the provisions of the RERA Act."
Builder is responsible for payment of all outgoings, tax, water and electricity charges
Karnataka RERA said that under Section 11(4) (g), a builder is responsible for payment of all outgoings, tax, water and electricity charges, maintenance charges and discharge encumbrances until he transfers the physical possession of the Real Estate project to the allottees or association of the allottees.
Builder has to mandatorily adhere to agreed amenities and maintenance
Karnataka RERA said that according to Section 14 of the RERA Act, a builder is required to develop the project by following the sanctioned plans, layout plans and specifications approved by the competent authorities.
Karnataka RERA said: "The promoter (builder) has to mandatorily adhere to the agreed amenities and its maintenance as per the terms of agreements. Mere delivery of possession without providing amenities in a functional condition is not valid possession." On this ground, the builder is liable for rectification of defects.
Karnataka RERA order
Karnataka RERA in its judgement (complaint no. 00002/2024) dated June 3, 2026 passed the following order:
- Builder is directed to restore power supply and to complete the assured amenities of the project as per the terms of agreements.
- Builder is directed to transfer the land's Khata, BESCOM meters, water meters, corpus fund, balance of escrow account and render accounts regarding maintenance to authorised association of allottees formed under the laws applicable within 90 days from the date of this order.
