Advertisement
When should a housing society in Mumbai start considering re...
From GST on JDAs to SEBI’s REIT reclassification and the S...
Stay ahead in the world of real estate with our daily podcas...
Stay ahead in the world of real estate with our daily podcas...
The Karnataka Real Estate Appellate Tribunal has ruled that the Bengaluru Development Authority (BDA) qualifies as a promoter under the Real Estate (Regulation and Development) Act, 2016, dismissing the authority's appeal against an earlier order of the Karnataka Real Estate Regulatory Authority (KRERA). The tribunal held that BDA must comply with the provisions of the Real Estate Act when it develops and sells residential layouts or buildings to the public. The case relates to the Nadaprabhu Kempegowda Layout project in Bengaluru, a large residential layout spread across about 4,043 acres that has faced prolonged delays affecting thousands of allottees. The tribunal upheld KRERA's directive requiring the project to be registered under the RERA framework and rejected BDA's argument that it should be exempt because it operates as a statutory planning authority.
The Karnataka Real Estate Appellate Tribunal has ruled that the Bengaluru Development Authority (BDA) must be treated as a promoter under the Real Estate (Regulation and Development) Act, 2016, dismissing an appeal filed by the authority and upholding an earlier order of the Karnataka Real Estate Regulatory Authority (KRERA). Advertisement
The tribunal delivered its order earlier this month while hearing BDA's challenge to a KRERA decision issued in November 2025 concerning the Nadaprabhu Kempegowda Layout (NPKL) project in Bengaluru. KRERA had previously ruled that the authority falls within the definition of a promoter under the Real Estate Act and directed it to register the project under the regulatory framework.
BDA had approached the appellate tribunal arguing that it functions as a statutory planning and development authority under the BDA Act, 1976, and therefore should not be classified as a promoter under RERA. According to the authority, its projects are governed by a separate legal framework and it cannot be equated with private real estate developers.
The tribunal rejected these arguments, observing that the definition of promoter under the Real Estate Act is broad and includes entities that develop land or buildings and sell them to the public. It held that when a government authority undertakes activities such as developing layouts and allotting plots for consideration, it performs functions similar to those carried out by private developers and must therefore comply with the same regulatory obligations.
As part of the ruling, the tribunal dismissed the appeal filed under Section 44 of the Real Estate Act and confirmed that the provisions of the legislation apply to BDA in relation to such projects. It also upheld the directive requiring the authority to register the Nadaprabhu Kempegowda Layout project under RERA.
The Nadaprabhu Kempegowda Layout is one of the largest residential layouts developed by BDA and covers approximately 4,043 acres in Bengaluru. The project was launched in 2014 with a targeted completion date of December 2021 but has faced significant delays, affecting thousands of allottees awaiting site development and infrastructure facilities.
Under the Real Estate Act, developers classified as promoters are required to register projects with the respective state regulator, disclose project details and approvals, and adhere to timelines for completion and delivery. Non-compliance may attract penalties and other regulatory action under the framework.
The tribunal's decision clarifies that government development authorities undertaking real estate development and plot allotment cannot claim exemption from the regulatory provisions of the Real Estate Act. Legal observers noted that the ruling reinforces the applicability of the RERA framework to public bodies engaged in housing development and strengthens regulatory oversight for projects affecting homebuyers.
Officials from BDA have indicated that the authority is examining the tribunal's decision and may consider further legal options, including approaching the Karnataka High Court. Meanwhile, the ruling is expected to have implications for regulatory compliance in government-led housing and layout development projects in the state.
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
