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Karnataka RERA has clarified that in joint development real estate projects, both landowners and developers will be held equally responsible for delays and non-compliance. The authority stated that landowners cannot escape liability when they are part of development agreements and benefit from the project. The clarification came after complaints from homebuyers regarding delayed possession and missing promised amenities. The ruling strengthens accountability under the RERA framework and ensures that responsibility for project execution and delivery is shared, improving protection for homebuyers in such developments.
The Karnataka Real Estate Regulatory Authority (RERA) has clarified that in joint development real estate projects, responsibility for delays, incomplete construction, and non-compliance with commitments will be shared equally between landowners and builders. The authority has made it clear that landowners cannot be treated as passive participants when they are part of development agreements and stand to gain from the project outcome. Advertisement
The clarification was issued after multiple complaints from homebuyers who reported delayed possession of homes and missing or incomplete amenities such as water supply systems, drainage facilities, and other promised common infrastructure. In several cases, builders had argued that liability should rest only with them, while landowners claimed their role was limited to providing land. However, RERA rejected this separation of responsibility, stating that both parties function as promoters under such agreements.
The authority further observed that in joint development models, the roles of landowners and developers are interconnected from planning to execution. As a result, both are equally responsible for ensuring that the project is completed within the agreed timelines and that all promised facilities are delivered to buyers as per the sale agreement or project plan.
Over time, Karnataka RERA has taken a consistent approach in similar disputes, where it has treated landowners as promoters when they are actively involved in development arrangements. In such cases, the regulator has also directed compensation and corrective action when homebuyers faced financial loss or extended delays due to non-compliance with project terms.
This latest clarification is expected to bring more accountability to ongoing and future joint development projects. It also reduces the scope of disputes between landowners and developers over responsibility sharing, while reinforcing that obligations towards homebuyers remain the primary focus under the RERA framework.
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