Bengaluru Homebuyers Push Back Against BDA’s Bid for RERA Exemption

Homebuyers in Bengaluru have written a letter to the Karnataka Real Estate Regulatory Authority (KRERA) to object against the Bengaluru Development Authority’s (BDA) claim to be kept out of the purview of RERA. The BDA has insisted that its functioning falls entirely under the Bengaluru Development Authority Act, 1976 a “self-contained code” that the Supreme Court has repeatedly upheld. On that basis, it argued that the Real Estate (Regulation and Development) Act, 2016 (RERA) does not apply to them.

BDA’s Argument

The BDA has said that it is not a “promoter” under Section 2 of RERA, but a statutory planning and development body, with responsibilities far beyond what private developers handle.

“Only after the government completes the acquisition of the land, does the question of completion of the project arise. As the acquisition of land is rife with challenge in various courts of law, the acquisition process is not complete, and therefore, the BDA cannot be held liable for it. Further, the developmental activity undertaken by BDA to such a large extent is time-consuming and requires a humongous amount of resources. Hence, no strict timeline can be followed by the BDA in forming the layout,” BDA wrote in its letter to KRERA.

BDA said that the RERA provisions, particularly those requiring project-specific fund allocations, would paralyse its ability to deliver affordable housing. Litigation delays, land acquisition battles, and cross-subsidisation of infrastructure leave no room for RERA’s rigid timelines, it said, according to a report by Hindustan Times.

Homebuyers Urge KRERA to Deny Exemption To BDA

Homebuyer forums, however, are not buying the argument. The Karnataka Homebuyers Forum has filed detailed objections, calling BDA’s claim both “shocking” and “surprising.”

“The RERA Act was brought in by the central government to bring transparency in the sector and make promoters accountable to buyers. It is shocking and surprising that BDA, which itself is acting as a promoter by developing apartments and sites, is now seeking exemption from registering its projects under RERA,” the forum said in its submission to KRERA.

Homebuyers have pointed out that projects, such as the Gunjur Apartments and Kempegowda Layout have been languishing for years. Allottees are left in limbo, with their investments locked in unfinished flats or plots that lack basic infrastructure.

For buyers, the absence of RERA oversight would mean no accountability, no timelines, and no binding redressal mechanisms, it said in its letter.

It added that RERA is their only hope in case of delays and they are positive that RERA will ensure every promoter, including BDA, comes under its jurisdiction in accordance with the law.

The Centre had brought in the Real Estate (Regulation and Development) Act, 2016 in a bid to protect homebuyers and ensure transparency in real estate projects. Homebuyers have argued that since the law applies to private promoters, BDA should not be treated any differently either.

The forum further argued that allowing such an exemption would create a dangerous precedent. If BDA escapes oversight, other statutory bodies could demand the same. The net result would be a hollowing out of RERA itself, they further said in the letter.