What Happens After a K-RERA Complaint: Hearings, Orders and Recovery

Filing a complaint with the Karnataka Real Estate Regulatory Authority (K-RERA) is the first step of a longer process. This article covers what follows: who hears the matter, how long it takes, what an order may contain, how an appeal works and how money is recovered when a promoter does not pay. It is written for home buyers in Bangalore who have filed, or are about to file, against a builder.

Two decision makers, two kinds of relief

The Real Estate (Regulation and Development) Act, 2016 splits the work between the Authority and an adjudicating officer. The Supreme Court settled the dividing line in November 2021, in the Newtech Promoters case. Refunds, interest on refunds, possession and interest for delayed possession are decided by the Authority. Compensation under sections 12, 14, 18 and 19 is decided by the adjudicating officer.

Section 71 requires the adjudicating officer to be a person who is, or has been, a District Judge. Section 72 lists what that officer weighs when fixing compensation:

• The unfair gain the promoter made from the default, where it can be measured.
• The loss the default caused to the buyer.
• Whether the default was repeated.
• Any other factor the officer considers necessary in the interest of justice.

A buyer who wants interest for delay and compensation for a specific loss therefore has two claims. Rent paid during the delay is a common example of such a loss. Each claim needs its own proof.

From notice to hearing

After scrutiny, the registry issues notice to the promoter with a copy of the complaint. The promoter files a written reply, the buyer may file a rejoinder, and the matter is listed before a bench of the Authority. Most matters are decided on documents and short oral arguments, without witnesses.

The Authority has the powers of a civil court for summoning persons, calling for documents and taking evidence on affidavit. It may also pass an interim order under section 36, restraining a promoter from an act that breaches the Act while the matter is pending. Many complaints are referred for conciliation first, and a settlement recorded there closes the case on agreed terms.

How long a decision takes

Section 29 asks the Authority to dispose of a matter as quickly as possible, within 60 days of receipt. Where that is not possible, it records the reasons and may take longer. Section 71 sets the same 60-day target for the adjudicating officer.

The 60 days are a target, and contested complaints in Karnataka commonly run for many months. A buyer keeps the matter moving by attending every date and filing replies on time. A written note of calculations helps the bench: the amount paid, the due date of possession and the interest claimed.

What an order may contain

The relief depends on what the buyer asked for and what the documents prove. Orders in favour of buyers usually carry one or more of these directions:

• Refund of the amount paid, with interest, where the buyer withdraws from the project.
• Interest for every month of delay until possession, where the buyer stays.
• Completion, handover or execution of the sale deed within a fixed period.
• Rectification of structural or workmanship defects, due within 30 days of a notice given in the five-year defect period.
• A penalty on the promoter under the Act, paid to the Authority.
• Compensation, where the adjudicating officer has heard that claim.

The interest rate in Karnataka is the State Bank of India's highest marginal cost of lending rate plus 2%. The order sets a period for compliance, often 60 days. Read the operative part closely and note the date from which interest runs.

Appeal to the Tribunal and the High Court

Either side may appeal to the Karnataka Real Estate Appellate Tribunal within 60 days of receiving the order. A promoter's appeal is entertained only after a deposit. Section 43(5) requires at least 30% of a penalty, or the total amount payable to the buyer with interest and compensation. The Supreme Court upheld this condition in the Newtech case, so an appeal filed without the deposit does not proceed.

A further appeal goes to the High Court under section 58, within 60 days, and only on a question of law. A buyer who has won before the Authority should check whether an appeal has been filed and whether the deposit was made. Where the appeal fails, the Tribunal may release the deposit towards the buyer's dues.

When the promoter does not comply

An unpaid order has two consequences. Section 63 makes a promoter who disobeys the Authority liable to a penalty for every day of default, up to 5% of the estimated project cost. Section 64 applies to orders of the Appellate Tribunal: the daily penalty may reach 10% of the project cost, with imprisonment of up to three years, or both.

The buyer's money is recovered through section 40. Unpaid interest, penalty or compensation is recoverable as an arrear of land revenue. Rule 25 of the Karnataka rules of 2017 lays down the procedure.

Recovery, step by step

Recovery does not start on its own, so the buyer must ask for it. The usual sequence in Karnataka is this:

1. Wait for the compliance period in the order to end, and check that no stay has been granted in appeal.
2. File an execution application with K-RERA, attaching the order and a calculation of the amount due with interest to date.
3. K-RERA issues a revenue recovery certificate to the Deputy Commissioner of the district where the promoter holds property.
4. The Deputy Commissioner's office, through the Tahsildar, issues a demand and may attach and auction the promoter's assets.
5. The amount recovered is passed on to the buyer.

This stage is the slowest part of the process. Recovery through district offices has lagged well behind the certificates issued. On 27 April 2026 the Karnataka High Court, in a writ petition filed by a group of buyers, directed the authorities to execute two K-RERA recovery certificates within eight weeks. It also allowed the buyers to give the Special Deputy Commissioner a list of the promoter's properties.

That case shows two practical steps. A buyer who identifies the promoter's unsold flats, land or bank accounts and supplies the list in writing gives the revenue office something to attach. Where a certificate is left unexecuted for months, a writ petition in the High Court is the remedy other buyers have used.

Keeping the file ready for each stage

Each stage draws on the same set of papers. Keep certified copies of the order, proof of the date it was served, every payment receipt and an updated interest calculation. Where the promoter enters insolvency, the claim is filed with the resolution professional, since buyers are treated as financial creditors under the insolvency code.

Buyers still choosing a project reduce this risk by checking the promoter's complaint history on the K-RERA portal before booking. Our team shares the registration details of every project we market; reach us through the contact page.