In a major step toward improving accountability and transparency in the real estate sector, the Karnataka Real Estate Regulatory Authority (K-RERA) has introduced a new Project Closure Policy to safeguard homebuyers and ensure that projects are completed as promised. Karnataka has become only the second state in India, after Odisha, to implement such a policy.
Under this new framework, real estate developers can no longer self-declare project completion. Instead, K-RERA will verify all statutory and service-related compliances before officially granting a completion certificate. This move ensures that homebuyers receive exactly what was promised at the time of purchase.
According to K-RERA officials, the policy aims to bring discipline to the system and build trust between developers and buyers. Before a project can be declared complete, builders will have to clear all dues, obtain occupancy and electricity/water approvals, and ensure property documents such as khata are processed. The policy also requires the fulfilment of any court or regulatory orders before closure approval is granted.
Data shared by K-RERA highlights the scale of ongoing regulation in the sector. As of October, there were 1,080 applications for project completion certificates or extensions, of which 886 were approved, 69 rejected, and 125 still under review. Additionally, around 2,746 projects have passed their scheduled completion dates without closure, signaling the need for stricter oversight.
The new Project Closure Policy also proposes linking payments to project milestones. A portion of payment may be held back until full compliance and certification are achieved—ensuring that builders stay committed to delivering completed projects responsibly. Karnataka Police has also been directed to assist in enforcing K-RERA orders, strengthening the authority’s ability to act against non-compliant builders.
This policy is expected to bring relief to thousands of homebuyers awaiting possession and marks a crucial step toward more transparent and buyer-friendly real estate regulation in Karnataka.
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