Bengaluru — The Karnataka Real Estate Regulatory Authority (K-RERA) is introducing a new project-closure verification system aimed at ensuring that housing projects are truly completed before being declared closed. This move comes in response to growing complaints from homebuyers regarding incomplete handovers and delayed construction timelines across the state.

What the New Policy Means

Under the proposed closure policy, a project will no longer be considered complete merely because a builder states so. Instead, K-RERA will verify the completion of essential statutory and service-related requirements. These include:

  • Obtaining the Occupancy Certificate (OC)
  • Ensuring basic amenities such as water, electricity and access roads
  • Establishing the Resident Welfare Association (RWA) where applicable
  • Transferring common areas and titles in accordance with required norms

This marks a shift from earlier practices where several developers self-certified completion, even when internal works, amenities or approvals were pending.

Why the Policy Was Needed

Over the years, Karnataka has seen a significant number of real estate projects experience delays or stall midway due to financial or operational issues. Thousands of registered projects have overshot their completion deadlines, affecting buyers who had already paid substantial amounts.

Homebuyer groups have been demanding a policy that ensures builders cannot close a project without fulfilling all obligations. The new mechanism aims to improve accountability and prevent premature possession being handed over without full infrastructure support.

Support and Enforcement

To strengthen compliance, police authorities will be empowered to enforce RERA notices in cases where developers do not cooperate. The policy may also include stages of payment release, ensuring that a portion of the builder’s payment is withheld until final compliance is confirmed.

Impact on Stakeholders

  • Homebuyers: Will gain greater protection and clarity regarding what constitutes a completed project.
  • Builders: Will face added responsibility to meet all statutory requirements before claiming closure.
  • Real Estate Market: The move is expected to improve trust, reduce disputes and promote more transparent project execution.

Challenges Ahead

Implementing the policy on a large scale may require additional staff, clear guidelines and strong coordination among local authorities, developers and homebuyer associations. The transition period, particularly for older or near-completion projects, could be complex.

Conclusion

The new project-closure policy marks an important step in strengthening real estate regulation and protecting buyer interests in Karnataka. If implemented effectively, it could improve accountability across the sector and help restore confidence in property transactions.