In a significant legal precedent for real estate allottees, the Karnataka Real Estate Regulatory Authority (K-RERA) has directed the Bangalore Development Authority (BDA) to pay ₹56.03 lakh in compensation to a site owner at the Nadaprabhu Kempegowda Layout (NPKL). The order marks the first time the regulatory body has penalised the BDA for failing to provide basic infrastructure.
The Case Background
The complainant, Mridula Krishnapur, had purchased a plot in Sector-B of the NPKL for approximately ₹96.87 lakh, completing the payment by February 2019. While the BDA executed the sale deed and handed over possession in June 2020, the site remained unusable.
According to the K-RERA order, the BDA failed to provide essential civic amenities, including:
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Potable water supply and sewage systems
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Electricity and street lighting
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Constructed roads and public parks
The authority observed that “mere handing over of possession” on paper does not fulfill a developer’s obligation if the lack of infrastructure prevents the owner from utilizing the property for its intended purpose—building a home. This ruling follows a previous significant decision where K-RERA ordered the BDA to register the NPKL layout under RERA, stripping away the agency’s claim of exemption as a statutory body.
The Compensation Breakdown
The K-RERA computed the compensation based on the delay period from June 10, 2020, to February 2, 2026. The total interest, calculated using the State Bank of India’s marginal cost of lending rate (MCLR), amounted to ₹56,03,736.
Key highlights of the ruling include:
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60-Day Deadline: The BDA must pay the full amount within two months.
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Ongoing Penalty: Interest will continue to accrue from February 3, 2026, until all basic amenities are fully provided.
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Jurisdiction Clarified: The BDA had argued it is a public authority and should not fall under RERA’s ambit. This defense was rejected by K-RERA, affirming that public developers are equally liable under the Act.
A “Benchmark Order”
The Nadaprabhu Kempegowda Layout Open Forum, which has long campaigned for the rights of thousands of allottees in the layout, hailed the decision. Forum president M.E. Channabasavaraj described the ruling as a “benchmark order” that sets a nationwide precedent for holding government development agencies accountable.
The BDA has indicated it may challenge the ruling in the High Court, claiming that 90% of civil works in the layout are already complete. However, for thousands of site owners waiting for basic infrastructure, this order provides a critical legal pathway to seek redress for years of delay. For more information on the rights of property buyers, you can visit the Official RERA Karnataka Portal.
