Karnataka RERA Strengthens Homebuyers Rights Orders Builder To Transfer Project Assets Within 90 Days
BENGALURU | June 17, 2026: In a significant decision that could impact apartment owners across Karnataka, the Karnataka Real Estate Regulatory Authority (K-RERA) has directed a builder to transfer important project assets, funds and records to the residents association within 90 days.
The order goes beyond a routine regulatory dispute and highlights a question many apartment buyers face after possession:
What happens when a builder continues to control key project assets even after residents move in?
What K-RERA Ordered
K-RERA directed the developer to hand over several project-related assets and records to the authorised association of allottees, including:
- Land khata records
- BESCOM electricity meters
- Water supply meters
- Corpus fund
- Escrow account balance
- Maintenance-related accounts
The authority also directed the builder to restore DG power supply to the complainant's apartment and complete amenities promised under the original agreements.
Why This Order Matters For Apartment Owners
Many housing projects witness disputes after possession regarding:
- Delayed handover to resident associations
- Incomplete amenities
- Lack of financial transparency
- Control over maintenance funds
Property experts say such issues can affect the long-term management of residential communities.
The latest K-RERA order reinforces the principle that residents associations should eventually receive control over assets and records necessary to manage their communities.
Cauvery Water Supply Issue Raised
The complaint also highlighted concerns regarding promised Cauvery water supply infrastructure.
According to the complainant, deposits were collected from flat buyers for Cauvery water connections, but the required infrastructure was allegedly not completed even years after purchase.
The matter formed part of the broader dispute examined by the authority.
Builder's Response
The developers informed K-RERA that the residents association had already been registered and maintenance responsibilities had been transferred.
They argued that certain disputes, including generator-related issues, were matters between the association and the complainant rather than the developer.
A Wider Message For The Housing Sector
Industry observers believe the order could serve as an important reminder for developers regarding post-possession obligations.
For apartment buyers, the ruling highlights that project completion is not limited to handing over keys. Financial transparency, utility infrastructure, common facilities and proper transfer of project assets also remain important parts of the homeownership experience.
What Homebuyers Should Check In Their Own Project
Residents living in apartment communities may consider reviewing:
- Whether the residents association has been formally recognised
- Status of corpus fund transfer
- Utility connections and asset ownership
- Pending amenities promised during booking
- Maintenance account transparency
Understanding these aspects can help residents avoid disputes that often emerge years after possession.