Revenue cell to recover builders’ dues
In a major relief for homebuyers, the Karnataka Real Estate Regulatory Authority (K-RERA) has proposed the creation of a dedicated recovery cell within the Revenue Department to recover dues from builders who have failed to hand over flats on time and violated RERA norms. Builders reportedly owe ₹650 crore in penalties, but only around 3% of this amount has been recovered so far.
To enforce Revenue Recovery Certificates (RRCs) issued against defaulters, the recovery cell will initiate property attachment and auction processes. Currently, implementation of RRCs lies with Deputy Commissioners and Tahsildars, but their administrative workload has hindered timely execution.
Of the total pending dues, 10 major builders alone owe ₹347 crore. Leading the list is Ozone Urbana Infra Developers Pvt. Ltd., which has been ordered to pay ₹201 crore across 229 cases but has only cleared ₹7.53 crore in 10 cases. Until May 15, 2025, K-RERA issued RRCs in 565 cases, aiming to recover ₹366.20 crore. However, only ₹18.70 crore has been collected from 62 cases, leaving ₹347.44 crore pending from 594 cases.
The proposal was submitted following a petition by Forum for People’s Collective Efforts (FPCE), which welcomed the move. “If implemented, Karnataka will become the second state to form such a recovery cell,” said M.S. Shankar, FPCE’s national general secretary. The government is now reviewing the proposal, which is expected to streamline recovery and ensure justice for thousands of aggrieved homebuyers across the state.