Curation Team
BENGALURU: Here is a ray of hope for homebuyers in Bengaluru and other parts of the state as the govt is finally cracking the whip on errant builders: A dedicated ‘Recovery Cell’ is in the final stages of being set up to ensure that real estate developers, who defy Karnataka Real Estate Regulatory Authority (K-Rera) orders with regard to compensating buyers, are held accountable and forced to pay up.
This move comes after years of frustration for homebuyers, who neither received property ownership nor got compensation, despite clear directives from K-Rera. Speaking to TOI, Rera chairman Rakesh Singh confirmed most of the groundwork was completed and a final call on whether the cell should operate under Rera or revenue dept will be taken in a meeting to be chaired by the chief secretary next week.
In fact, the concept of a recovery cell was mooted in the backdrop of non-adherence by realtors to Rera orders. “Though homebuyers were getting orders in their favour, the builders just shrugged off Rera directives and there was no accountability. But by establishing a recovery cell, compliance levels will go up,” sources pointed out.
As per official data, Rs 724 crore is yet to be recovered from over 1,500 builders across the state as of May 31, 2025, with Bengaluru urban topping the list with Rs 710 crore.
Composition of recovery cell
The cell will focus exclusively on implementing Rera orders and will be led by a special deputy commissioner. It will include two grade-1 tahsildars, two headmen, and supporting clerical staff. The officers will be authorised under Section 40(1) of Real Estate (Regulation and Development) Act, 2016, and Rule 25 of Karnataka RERA Rules, 2017. The cell will be empowered to treat these dues as arrears of land revenue and take coercive action, including attaching the properties of defaulting project promoters. Rera has also recommended this cell be brought under Sakala Mission framework to ensure time-bound execution.
Homebuyers praise the move
Homebuyers say this initiative of setting up the cell will help protect their rights. M S Shankar, national general secretary, Forum For People’s Collective Efforts, said: “Though Rera Act has strong provisions to protect the interests of the real estate sector in general, and homebuyers in particular, it is currently criticised as a ‘toothless tiger’ — mainly due to poor recovery of money awarded to homebuyers under Rera orders. Officials are now planning to set up a dedicated recovery cell exclusively to recover dues from such orders. This is good news for homebuyers and could go a long way in resolving the ongoing issues surrounding refunds.”
Dhananjaya Padmanabhachar, convenor, Karnataka Home Buyers Forum, said, “Once Rera passes the orders, it is the responsibility of the revenue dept to enforce the recovery and ensure that homebuyers get justice. However, the revenue department often remains inactive and fails to take timely action. It is crucial to have dedicated revenue recovery officers either within Rera or revenue department to ensure effective recovery. These officers should also be empowered to attach the properties of defaulting promoters. Additionally, the revenue recovery mechanism should be brought under the Sakala Mission to ensure time-bound enforcement.”
