Karnataka RERA Recovery Gets Digital Push as 1,090 Crore Builder Dues Remain Pending

BENGALURU, August 31, 2026: Karnataka is preparing to launch a common digital system to track and enforce Revenue Recovery Certificates (RRCs) issued by authorities including K-RERA. The system aims to help officials trace builders' assets and speed up recovery of compensation, penalties and other dues awarded to homebuyers.

1,090 Crore RERA Dues Still Pending

As of August 10, K-RERA had issued 2,556 RRCs worth 1,214.3 crore. Of these, only 329 RRCs involving 123.8 crore had been recovered.

This leaves 2,227 RRCs worth 1,090.5 crore still pending.

Builder Assets Could Be Traced Digitally

The proposed system will integrate government databases such as Bhoomi and Kaveri, along with vehicle and property-tax records. The government is also exploring access to bank account information.

By entering a builder or company director's name, officials could identify properties, vehicles and other assets held across Karnataka, potentially making attachment and recovery faster.

 

New Recovery Process for Homebuyers

Under K-RERA's new time-bound SOP, interest, penalties and compensation can be recovered as arrears of land revenue, while RERA orders can be enforced like civil court decrees.

In cases of continued default, builders may have to disclose their assets. Unpaid dues can then lead to an RRC, followed by asset attachment and auction.

The digital system is expected to become operational by mid-September 2026 and could eventually be expanded to other government recoveries.

Why It Matters for Homebuyers

For homebuyers who have already won a RERA case but are still waiting for payment, the biggest issue is often execution rather than the order itself. Faster asset tracing and digital monitoring could make it harder for defaulting builders to delay recovery by moving or holding assets across different districts.